HF 7

as introduced - 91st Legislature, 2019 1st Special Session (2019 - 2020) Posted on 05/24/2019 02:09pm

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, the Housing Finance Agency, and broadband development; making policy
and technical changes to various provisions related to agriculture, food, rural
development, and housing, including provisions related to grants, loans, pesticides,
fertilizer, hemp, pastures, bioincentive programs, grain buyers, grain warehouses,
manufactured homes, Housing Finance Agency loans and grants, Minnesota Bond
Allocation Act, and residential leases; authorizing rulemaking; requiring reports;
providing penalties and fees; appropriating money; amending Minnesota Statutes
2018, sections 17.041, subdivision 1; 17.118, subdivision 2; 18B.07, subdivision
2; 18C.425, subdivision 6; 18C.70, subdivision 5; 18C.71, subdivisions 1, 4;
18C.80, subdivision 2; 18K.02, subdivision 3; 18K.03; 28A.16; 41A.15,
subdivisions 2, 10, by adding a subdivision; 41A.16, subdivisions 1, 2, 4; 41A.17,
subdivisions 1, 2, 3; 41A.18, subdivisions 1, 2, 3; 41B.02, subdivision 10a, as
amended; 41B.045; 41B.055, subdivision 4; 116.06, by adding a subdivision;
116.07, subdivisions 7, 7d; 223.16, subdivisions 1, 2a, 4; 223.17, subdivisions 3,
4, 5, 6; 223.177, subdivisions 2, 3; 223.19; 232.21, subdivision 7, by adding
subdivisions; 232.22, subdivisions 3, 4; 232.23, subdivision 3; 232.24; 299D.085,
by adding a subdivision; 326B.815, subdivision 1; 327.31, by adding a subdivision;
327B.041; 327C.01, by adding a subdivision; 327C.095, subdivisions 1, 2, 3, 4,
6, 7, 9, 11, 12, 13, by adding a subdivision; 428A.11, subdivisions 4, 6; 462A.2035,
subdivisions 1a, 1b; 462A.209, subdivision 8; 462A.22, subdivision 9; 462A.222,
subdivision 3; 462A.24; 462A.33, subdivision 1; 462A.38, subdivision 1; 474A.02,
by adding subdivisions; 474A.03, subdivision 1; 474A.04, subdivision 1a;
474A.061, subdivisions 1, 2a, 2b, 2c, 4, by adding subdivisions; 474A.062;
474A.091, subdivisions 1, 2, 3, 5, by adding a subdivision; 474A.131, subdivisions
1, 1b; 474A.14; 474A.21; 504B.111; 504B.206, subdivision 3; Laws 2015, First
Special Session chapter 4, article 1, section 2, subdivision 4, as amended; Laws
2017, chapter 88, article 1, section 2, subdivisions 2, 4; proposing coding for new
law in Minnesota Statutes, chapters 18D; 223; 327; 462A; 504B; repealing
Minnesota Statutes 2018, sections 41A.15, subdivisions 2a, 2b; 327C.095,
subdivision 8.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1. new text begin AGRICULTURE APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this 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 "2020" and "2021" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively.
"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium"
is fiscal years 2020 and 2021.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2020 new text end		new text begin 2021 new text end

Sec. 2. new text begin DEPARTMENT OF AGRICULTURE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 54,208,000 new text end

new text begin $ new text end

new text begin 54,207,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2020 new text end	new text begin 2021 new text end
new text begin General new text end	new text begin 53,809,000 new text end	new text begin 53,808,000 new text end
new text begin Remediation new text end	new text begin 399,000 new text end	new text begin 399,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

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

new text begin Appropriations by Fund new text end
	new text begin 2020 new text end	new text begin 2021 new text end
new text begin General new text end	new text begin 18,650,000 new text end	new text begin 18,650,000 new text end
new text begin Remediation new text end	new text begin 399,000 new text end	new text begin 399,000 new text end

new text begin (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.
new text end

new text begin (b) $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 2019. 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.
new text end

new text begin (c) $250,000 the first year and $250,000 the
second year are for rapid detection,
identification, containment, control, and
management of high-priority plant pests and
pathogens including emerald ash borer.
new text end

new text begin (d) $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 $30,000 of the appropriation
each year to reimburse expenses incurred by
the commissioner or the commissioner's
approved agent to investigate and resolve
claims.
new text end

new text begin If the commissioner determines that claims
made under Minnesota Statutes, section 3.737
or 3.7371, are unusually high, amounts
appropriated for either program may be
transferred to the appropriation for the other
program.
new text end

new text begin (e) $450,000 the first year and $450,000 the
second year are additional funding for the
noxious weed and invasive plant program. The
base amount for this appropriation in fiscal
year 2022 and later is $225,000.
new text end

new text begin (f) $175,000 the first year and $175,000 the
second year are for industrial hemp
development.
new text end

new text begin (g) $150,000 the first year and $150,000 the
second year are for additional meat and poultry
inspection services.
new text end

new text begin (h) $275,000 the first year and $275,000 the
second year are to replace capital equipment
in the Department of Agriculture's analytical
laboratory. The base amount for this
appropriation in fiscal year 2022 and later is
$225,000.
new text end

new text begin (i) $250,000 the first year and $250,000 the
second year are for agricultural emergency
preparedness and response.
new text end

new text begin Subd. 3. new text end new text begin Agricultural Marketing and Development new text end

new text begin 3,996,000 new text end

new text begin 3,996,000 new text end

new text begin (a) $186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants for
Minnesota grown promotion under Minnesota
Statutes, section 17.102. Grants may be made
for one year. Notwithstanding Minnesota
Statutes, section 16A.28, the appropriations
encumbered under contract on or before June
30, 2021, for Minnesota grown grants in this
paragraph are available until June 30, 2023.
new text end

new text begin (b) $100,000 the first year and $100,000 the
second year are to expand domestic and
international marketing opportunities for
farmers and value-added processors, including
staffing to facilitate farm-to-school sales and
new markets for Minnesota-grown hemp.
new text end

new text begin (c) $634,000 the first year and $634,000 the
second year are for continuation of the dairy
development and profitability enhancement
and dairy business planning grant programs
established under Laws 1997, chapter 216,
section 7, subdivision 2, and Laws 2001, First
Special Session chapter 2, section 9,
subdivision 2. The commissioner may allocate
the available sums among permissible
activities, including efforts to improve the
quality of milk produced in the state, in the
proportions that the commissioner deems most
beneficial to Minnesota's dairy farmers. The
commissioner must submit a detailed
accomplishment report and a work plan
detailing future plans for, and anticipated
accomplishments from, expenditures under
this program to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
policy and finance on or before the start of
each fiscal year. If significant changes are
made to the plans in the course of the year,
the commissioner must notify the chairs and
ranking minority members.
new text end

new text begin (d) $50,000 the first year and $50,000 the
second year are for additional community
outreach on farms and rural mental health
services including the 24-hour hotline, service
availability, and mental health forums. Of this
appropriation, $12,000 each year is to provide
professional development training for Farm
Business Management instructors in the
Minnesota State system. The appropriations
under this paragraph are onetime.
new text end

new text begin (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.
new text end

new text begin Subd. 4. new text end new text begin Agriculture, Bioenergy, and Bioproduct Advancement new text end

new text begin 23,653,000 new text end

new text begin 23,654,000 new text end

new text begin (a) $9,300,000 the first year and $9,300,000
the second year are for transfer to the
agriculture research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. Of
these amounts: at least $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); $2,000,000 the first
year and $2,000,000 the second year are for
grants to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm Business
Management challenge grants; $350,000 the
first year and $350,000 the second year are
for potato breeding; and $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. The commissioner shall transfer
the remaining funds in this appropriation each
year to the Board of Regents of the University
of Minnesota for purposes of Minnesota
Statutes, section 41A.14. Of the amount
transferred to the Board of Regents, up to
$1,000,000 each year is for research on avian
influenza.
new text end

new text begin 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.
new text end

new text begin (b) $14,353,000 the first year and $14,354,000
the second year are for the agricultural growth,
research, and innovation program in
Minnesota Statutes, section 41A.12. Except
as provided below, the commissioner may
allocate the 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; providing funding not to exceed
$400,000 each year to develop and enhance
farm-to-school markets for Minnesota farmers
by providing more fruits, vegetables, meat,
grain, and dairy for Minnesota children in
school and child care settings including, at the
commissioner's discretion, reimbursing
schools for purchases from local farmers;
assisting value-added agricultural businesses
to begin or expand, to access new markets, or
to diversify, including aquaponics systems;
providing funding not to exceed $300,000
each year for urban youth agricultural
education or urban agriculture community
development; providing funding not to exceed
$300,000 each year for the good food access
program under Minnesota Statutes, section
17.1017; 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;
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/good handling
practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.
new text end

new text begin Of the amount appropriated for the agricultural
growth, research, and innovation program in
Minnesota Statutes, section 41A.12:
new text end

new text begin (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;
new text end

new text begin (2) $2,500,000 the first year and $2,500,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2021, and the second year appropriation is
available until June 30, 2022. 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 the agricultural growth, research,
and innovation program. The base amount for
the allocation under this clause is $3,000,000
in fiscal year 2022 and later;
new text end

new text begin (3) up to $5,000,000 the first year is for Dairy
Assistance, Investment, Relief Initiative
(DAIRI) grants to Minnesota dairy farmers
who enroll for five years of coverage under
the federal dairy margin coverage program
and produced no more than 16,000,000 pounds
of milk in 2018. The commissioner must
award DAIRI grants based on participating
producers' amount of 2018 milk, up to
5,000,000 pounds per participating producer,
at a rate determined by the commissioner
within the limits of available funding;
new text end

new text begin (4) up to $5,000,000 the second year is for
innovative soybean processing and research;
new text end

new text begin (5) $75,000 the first year is for a grant to
Greater Mankato Growth, Inc. for assistance
to agricultural-related businesses to promote
jobs, innovation, and synergy development;
and
new text end

new text begin (6) $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.
new text end

new text begin The amounts in clauses (3) to (6) are onetime.
new text end

new text begin 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, 2021, for agricultural
growth, research, and innovation grants are
available until June 30, 2024.
new text end

new text begin The base amount for the agricultural growth,
research, and innovation program is
$14,693,000 in fiscal year 2022 and
$14,693,000 in fiscal year 2023, and includes
funding for incentive payments under
Minnesota Statutes, sections 41A.16, 41A.17,
41A.18, and 41A.20.
new text end

new text begin The commissioner must consult with the
commissioner of transportation, the
commissioner of administration, and local
units of government to identify at least ten
parcels of publicly owned land that are suitable
for urban agriculture.
new text end

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

new text begin 7,510,000 new text end

new text begin 7,508,000 new text end

new text begin (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.
new text end

new text begin (b) $2,000 the first year is for a grant to the
Minnesota State Poultry Association. This is
a onetime appropriation, and is available until
June 30, 2021.
new text end

new text begin (c) $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association. These are
onetime appropriations.
new text end

new text begin (d) $47,000 the first year and $47,000 the
second year are for the Northern Crops
Institute. These appropriations may be spent
to purchase equipment. These are onetime
appropriations.
new text end

new text begin (e) $267,000 the first year and $267,000 the
second year are for farm advocate services.
new text end

new text begin (f) $17,000 the first year and $17,000 the
second year are for grants to the Minnesota
Horticultural Society. These are onetime
appropriations.
new text end

new text begin (g) $250,000 the first year and $250,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges and
Universities for statewide mental health
counseling support to farm families and
business operators through the Minnesota State
Agricultural Centers of Excellence. South
Central College and Central Lakes College
shall serve as the fiscal agents. The base
amount for this appropriation in fiscal year
2022 and later is $238,000.
new text end

new text begin (h) $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:
new text end

new text begin (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; and
new text end

new text begin (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.
new text end

new text begin 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 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. The base for this
appropriation is $1,650,000 in fiscal year 2022
and $1,650,000 in fiscal year 2023.
new text end

new text begin (i) $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.
new text end

new text begin (j) $250,000 the first year and $250,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.
new text end

new text begin (k) The commissioner shall continue to
increase connections with ethnic minority and
immigrant farmers to farming opportunities
and farming programs throughout the state.
new text end

Sec. 3. new text begin BOARD OF ANIMAL HEALTH new text end

new text begin $ new text end

new text begin 5,677,000 new text end

new text begin $ new text end

new text begin 5,677,000 new text end

new text begin $200,000 the first year and $200,000 the
second year are for agricultural emergency
preparedness and response.
new text end

Sec. 4. new text begin AGRICULTURAL UTILIZATION RESEARCH INSTITUTE new text end

new text begin $ new text end

new text begin 3,893,000 new text end

new text begin $ new text end

new text begin 3,893,000 new text end

Sec. 5.

Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as
amended by Laws 2016, chapter 184, section 11, Laws 2016, chapter 189, article 2, section
26, and Laws 2017, chapter 88, article 1, section 5, is amended to read:

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

14,993,000

18,316,000

$4,483,000 the first year and $8,500,000 the
second year are for transfer to the agriculture
research, education, extension, and technology
transfer account under Minnesota Statutes,
section 41A.14, subdivision 3. The transfer in
this paragraph includes money for plant
breeders at the University of Minnesota for
wild rice, potatoes, and grapes. Of these
amounts, at least $600,000 each year is for the
Minnesota Agricultural Experiment Station's
Agriculture Rapid Response Fund under
Minnesota Statutes, section 41A.14,
subdivision 1, clause (2). Of the amount
appropriated in this paragraph, $1,000,000
each year is for transfer to the Board of
Regents of the University of Minnesota for
research to determine (1) what is causing avian
influenza, (2) why some fowl are more
susceptible, and (3) prevention measures that
can be taken. Of the amount appropriated in
this paragraph, $2,000,000 each year is for
grants to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm Business
Management challenge grants. The
commissioner shall transfer the remaining
grant funds in this appropriation each year to
the Board of Regents of the University of
Minnesota for purposes of Minnesota Statutes,
section 41A.14.

To the extent practicable, funds 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 4.5 percent of this appropriation for
costs incurred to administer the program. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

$10,235,000 the first year and $9,541,000 the
second year are for the agricultural growth,
research, and innovation program in
Minnesota Statutes, section 41A.12. No later
than February 1, 2016, and February 1, 2017,
the commissioner must report to the legislative
committees with jurisdiction over agriculture
policy and finance regarding the
commissioner's accomplishments and
anticipated accomplishments in the following
areas: facilitating the start-up, modernization,
or expansion of livestock operations including
beginning and transitioning livestock
operations; developing new markets for
Minnesota farmers by providing more fruits,
vegetables, meat, grain, and dairy for
Minnesota school children; assisting
value-added agricultural businesses to begin
or expand, access new markets, or diversify
products; developing urban agriculture;
facilitating the start-up, modernization, or
expansion of other beginning and transitioning
farms including loans under Minnesota
Statutes, section 41B.056; sustainable
agriculture on farm research and
demonstration; development or expansion of
food hubs and other alternative
community-based food distribution systems;
incentive payments under Minnesota Statutes,
sections 41A.16, 41A.17, and 41A.18; and
research on bioenergy, biobased content, or
biobased formulated products and other
renewable energy development. The
commissioner may use up to 4.5 percent of
this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered under
contract on or before June 30, 2017, for
agricultural growth, research, and innovation
grants are available until June 30, deleted text begin 2019 deleted text end new text begin 2020 new text end .

The commissioner may use funds appropriated
for the agricultural growth, research, and
innovation program as provided in this
paragraph. The commissioner may award
grants to owners of Minnesota facilities
producing bioenergy, biobased content, or a
biobased formulated product; to organizations
that provide for on-station, on-farm field scale
research and outreach to develop and test the
agronomic and economic requirements of
diverse strands of prairie plants and other
perennials for bioenergy systems; or to certain
nongovernmental entities. For the purposes of
this paragraph, "bioenergy" includes
transportation fuels derived from cellulosic
material, as well as the generation of energy
for commercial heat, industrial process heat,
or electrical power from cellulosic materials
via gasification or other processes. Grants are
limited to 50 percent of the cost of research,
technical assistance, or equipment related to
bioenergy, biobased content, or biobased
formulated product production or $500,000,
whichever is less. Grants to nongovernmental
entities for the development of business plans
and structures related to community ownership
of eligible bioenergy facilities together may
not exceed $150,000. The commissioner shall
make a good-faith effort to select projects that
have merit and, when taken together, represent
a variety of bioenergy technologies, biomass
feedstocks, and geographic regions of the
state. Projects must have a qualified engineer
provide certification on the technology and
fuel source. Grantees must provide reports at
the request of the commissioner.

Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, $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.

Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, $500,000 in fiscal year 2016
and $806,000 in fiscal year 2017 are for
incentive payments under Minnesota Statutes,
sections 41A.16, 41A.17, and 41A.18. If the
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available to the commissioner for the
agricultural growth, research, and innovation
program. Notwithstanding Minnesota Statutes,
section 16A.28, the first year appropriation is
available until June 30, 2017, and the second
year appropriation is available until June 30,
2018. The commissioner may use up to 4.5
percent of the appropriation for administration
of the incentive payment programs.

Of the amount appropriated for the agricultural
growth, research, and innovation program in
this subdivision, $250,000 the first year is for
grants to communities to develop or expand
food hubs and other alternative
community-based food distribution systems.
Of this amount, $50,000 is for the
commissioner to consult with existing food
hubs, alternative community-based food
distribution systems, and University of
Minnesota Extension to identify best practices
for use by other Minnesota communities. No
later than December 15, 2015, the
commissioner must report to the legislative
committees with jurisdiction over agriculture
and health regarding the status of emerging
alternative community-based food distribution
systems in the state along with
recommendations to eliminate any barriers to
success. Any unencumbered balance does not
cancel at the end of the first year and is
available for the second year. This is a onetime
appropriation.

$250,000 the first year and $250,000 the
second year are for grants that enable retail
petroleum dispensers 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 paragraph if the retail petroleum
dispenser has no more than 15 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money received under
this paragraph must be used for the installation
of appropriate technology that uses fuel
dispensing equipment appropriate for at least
one fuel dispensing site to dispense gasoline
that is blended with 15 percent of
agriculturally derived, denatured ethanol, by
volume, and appropriate technical assistance
related to the installation. A grant award must
not exceed 85 percent of the cost of the
technical assistance and appropriate
technology, including remetering of and
retrofits for retail petroleum dispensers and
replacement of petroleum dispenser projects.
The commissioner may use up to $35,000 of
this appropriation for administrative expenses.
The commissioner shall cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner must report to
the legislative committees with jurisdiction
over agriculture policy and finance by
February 1 each year, detailing the number of
grants awarded under this paragraph and the
projected effect of the grant program on
meeting the biofuel replacement goals under
Minnesota Statutes, section 239.7911. These
are onetime appropriations.

$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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Laws 2017, chapter 88, article 1, section 2, subdivision 2, is amended to read:

Subd. 2. Protection Services

17,821,000

17,825,000

Appropriations by Fund
	2018	2019
General	17,428,000	17,428,000
Remediation	393,000	397,000

(a) $25,000 the first year and $25,000 the
second year are to develop and maintain
cottage food license exemption outreach and
training materials.

(b) $75,000 the first year and $75,000 the
second year are to coordinate the correctional
facility vocational training program and to
assist entities that have explored the feasibility
of establishing a USDA-certified or state
"equal to" food processing facility within 30
miles of the Northeast Regional Corrections
Center.

(c) $125,000 the first year and $125,000 the
second year are for additional funding for the
noxious weed and invasive plant program.
These are onetime appropriations.

(d) $250,000 the first year and $250,000 the
second year are for transfer to the pollinator
habitat and research account in the agricultural
fund. These are onetime transfers.

(e) $393,000 the first year and $397,000 the
second year are from the remediation fund for
administrative funding for the voluntary
cleanup program.

(f) $200,000 the first year and $200,000 the
second year are for the industrial hemp pilot
program under Minnesota Statutes, section
18K.09. These are onetime appropriations.

(g) $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. This
appropriation may be spent to compensate for
livestock that were destroyed or crippled
during fiscal year 2017. If the amount in the
first year is insufficient, the amount in the
second year is available in the first year. new text begin The
commissioner may use up to $5,000 of this
appropriation the second year to reimburse
expenses incurred by university extension
educators to provide fair market values of
destroyed or crippled livestock.
new text end

(h) $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 $30,000 of the appropriation
each year to reimburse expenses incurred by
the commissioner or the commissioner's
approved agent to investigate and resolve
claims.

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.

(i) $250,000 the first year and $250,000 the
second year are to expand current capabilities
for rapid detection, identification, containment,
control, and management of high priority plant
pests and pathogens. These are onetime
appropriations.

(j) $300,000 the first year and $300,000 the
second year are for transfer to the noxious
weed and invasive plant species assistance
account in the agricultural fund to award
grants to local units of government under
Minnesota Statutes, section 18.90, with
preference given to local units of government
responding to Palmer amaranth or other weeds
on the eradicate list. These are onetime
transfers.

(k) $120,000 the first year and $120,000 the
second year are for wolf-livestock conflict
prevention grants under article 2, section 89.
The commissioner must submit a report to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture policy and finance by January 15,
2020, on the outcomes of the wolf-livestock
conflict prevention grants and whether
livestock compensation claims were reduced
in the areas that grants were awarded. These
are onetime appropriations.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Laws 2017, chapter 88, article 1, section 2, subdivision 4, is amended to read:

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

22,581,000

22,636,000

(a) $9,300,000 the first year and $9,300,000
the second year are for transfer to the
agriculture research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. Of
these amounts: at least $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); $2,000,000 the first
year and $2,000,000 the second year are for
grants to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm Business
Management challenge grants; $350,000 the
first year and $350,000 the second year are
for potato breeding; and $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. The commissioner shall transfer
the remaining funds in this appropriation each
year to the Board of Regents of the University
of Minnesota for purposes of Minnesota
Statutes, section 41A.14. Of the amount
transferred to the Board of Regents, up to
$1,000,000 each year is for research on avian
influenza, including prevention measures that
can be taken.

To the extent practicable, funds 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.

(b) $13,256,000 the first year and $13,311,000
the second year are for the agricultural growth,
research, and innovation program in
Minnesota Statutes, section 41A.12. Except
as provided below, the commissioner may
allocate the appropriation each year among
the following areas: facilitating the start-up,
modernization, or expansion of livestock
operations including beginning and
transitioning livestock operations; developing
new markets for Minnesota farmers by
providing more fruits, vegetables, meat, grain,
and dairy for Minnesota school children;
assisting value-added agricultural businesses
to begin or expand, access new markets, or
diversify; providing funding not to exceed
$250,000 each year for urban youth
agricultural education or urban agriculture
community development; providing funding
not to exceed $250,000 each year for the good
food access program under Minnesota
Statutes, section 17.1017; 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;
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research;
Farm Business Management tuition assistance;
good agricultural practices/good handling
practices certification assistance; establishing
and supporting farmer-led water management
councils; and implementing farmer-led water
quality improvement practices. 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 in
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;
and

(2) $1,500,000 the first year and $1,500,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2019, and the second year appropriation is
available until June 30, 2020. 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 the agricultural growth, research,
and innovation program.

The commissioner may use funds appropriated
under this subdivision to award up to two
value-added agriculture grants per year of up
to $1,000,000 per grant for new or expanding
agricultural production or processing facilities
that provide significant economic impact to
the region. The commissioner may use funds
appropriated under this subdivision for
additional value-added agriculture grants for
awards between $1,000 and $200,000 per
grant.

Appropriations in clauses (1) and (2) are
onetime. Any unencumbered balance does not
cancel at the end of the first year and is
available for the second year. Notwithstanding
Minnesota Statutes, section 16A.28,
appropriations encumbered under contract on
or before June 30, 2019, for agricultural
growth, research, and innovation grants are
available until June 30, deleted text begin 2021 deleted text end new text begin 2022 new text end .

The base budget for the agricultural growth,
research, and innovation program is
$14,275,000 for fiscal years 2020 and 2021
and includes funding for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, 41A.18, and 41A.20.

The commissioner must develop additional
innovative production incentive programs to
be funded by the agricultural growth, research,
and innovation program.

The commissioner must consult with the
commissioner of transportation, the
commissioner of administration, and local
units of government to identify parcels of
publicly owned land that are suitable for urban
agriculture.

(c) $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.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

AGRICULTURE STATUTORY CHANGES

Section 1.

Minnesota Statutes 2018, section 17.041, subdivision 1, is amended to read:

Subdivision 1.

Establishment; appropriation.

An agricultural emergency account is
established in the agricultural fund. Money in the account, including interest, is appropriated
to the commissioner for emergency response deleted text begin and preparedness deleted text end activities for agricultural
emergencies affecting producers of livestock, poultry, crops, or other agricultural products.
Eligible uses include deleted text begin , but are not limited to, deleted text end new text begin agency costs directly attributed to responding
to agricultural emergencies and new text end purchasing necessary equipment and reimbursing costs
incurred by local units of government that are not eligible for reimbursement from other
sources.

Sec. 2.

Minnesota Statutes 2018, section 17.118, subdivision 2, is amended to read:

Subd. 2.

Definitions.

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

(b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
Cervidae, Ratitae, bison, sheep, horses, and llamas.

(c) "Qualifying expenditures" means the amount spent for:

(1) the acquisition, construction, or improvement of buildings or facilities for the
production of livestock or livestock products;

(2) the development of pasture for use by livestock including, but not limited to, the
acquisition, development, or improvement of:

(i) lanes used by livestock that connect pastures to a central location;

(ii) watering systems for livestock on pasture including water lines, booster pumps, and
well installations;

(iii) livestock stream crossing stabilization; and

(iv) fences; or

(3) the acquisition of equipment for livestock housing, confinement, feeding, and waste
management including, but not limited to, the following:

(i) freestall barns;

(ii) watering facilities;

(iii) feed storage and handling equipment;

(iv) milking parlors;

(v) robotic equipment;

(vi) scales;

(vii) milk storage and cooling facilities;

(viii) bulk tanks;

(ix) computer hardware and software and associated equipment used to monitor the
productivity and feeding of livestock;

(x) manure pumping and storage facilities;

(xi) swine farrowing facilities;

(xii) swine and cattle finishing barns;

(xiii) calving facilities;

(xiv) digesters;

(xv) equipment used to produce energy;

(xvi) on-farm processing facilities equipment;

(xvii) fences new text begin , including but not limited to farmed Cervidae perimeter fences required
under section 35.155, subdivision 4 new text end ; and

(xviii) livestock pens and corrals and sorting, restraining, and loading chutes.

Except for qualifying pasture development expenditures under clause (2), qualifying
expenditures only include amounts that are allowed to be capitalized and deducted under
either section 167 or 179 of the Internal Revenue Code in computing federal taxable income.
Qualifying expenditures do not include an amount paid to refinance existing debt.

Sec. 3.

Minnesota Statutes 2018, section 18B.07, subdivision 2, is amended to read:

Subd. 2.

Prohibited pesticide use.

(a) A person may not use, store, handle, distribute,
or dispose of a pesticide, rinsate, pesticide container, or pesticide application equipment in
a manner:

(1) that is inconsistent with a label or labeling as defined by FIFRA;

(2) that endangers humans, damages agricultural products, food, livestock, fish, or
wildlife; or

(3) that will cause unreasonable adverse effects on the environment.

(b) A person may not direct a pesticide onto property beyond the boundaries of the target
site. A person may not apply a pesticide resulting in damage to adjacent property. new text begin A person
who applies a pesticide resulting in damage to adjacent property that is part of the state
outdoor recreation system is subject to enhanced monetary penalties as provided in section
18D.40.
new text end

(c) A person may not directly apply a pesticide on a human by overspray or target site
spray, except when:

(1) the pesticide is intended for use on a human;

(2) the pesticide application is for mosquito control operations;

(3) the pesticide application is for control of gypsy moth, forest tent caterpillar, or other
pest species, as determined by the commissioner, and the pesticide used is a biological
agent; or

(4) the pesticide application is for a public health risk, as determined by the commissioner
of health, and the commissioner of health, in consultation with the commissioner of
agriculture, determines that the application is warranted based on the commissioner's
balancing of the public health risk with the risk that the pesticide application poses to the
health of the general population, with special attention to the health of children.

(d) For pesticide applications under paragraph (c), clause (2), the following conditions
apply:

(1) no practicable and effective alternative method of control exists;

(2) the pesticide is among the least toxic available for control of the target pest; and

(3) notification to residents in the area to be treated is provided at least 24 hours before
application through direct notification, posting daily on the treating organization's website,
if any, and by sending a broadcast e-mail to those persons who request notification of such,
of those areas to be treated by adult mosquito control techniques during the next calendar
day. For control operations related to human disease, notice under this paragraph may be
given less than 24 hours in advance.

(e) For pesticide applications under paragraph (c), clauses (3) and (4), the following
conditions apply:

(1) no practicable and effective alternative method of control exists;

(2) the pesticide is among the least toxic available for control of the target pest; and

(3) notification of residents in the area to be treated is provided by direct notification
and through publication in a newspaper of general circulation within the affected area.

(f) For purposes of this subdivision, "direct notification" may include mailings, public
meetings, posted placards, neighborhood newsletters, or other means of contact designed
to reach as many residents as possible. Public meetings held to meet this requirement for
adult mosquito control, under paragraph (d), must be held within each city or town where
the pesticide treatments are to be made, at a time and location that is convenient for residents
of the area where the treatments will occur.

(g) A person may not apply a pesticide in a manner so as to expose a worker in an
immediately adjacent, open field.

(h) Notwithstanding that the application is done in a manner consistent with the label
or labeling, it is a violation of this chapter to directly apply a pesticide to a site where an
application has not been: (1) requested, ordered, contracted for, or permitted; or (2) performed
pursuant to paragraph (c), clause (2), (3), or (4).

Sec. 4.

Minnesota Statutes 2018, 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 cents per ton, and until June 30, deleted text begin 2019 deleted text end new text begin 2024 new text end , 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. 5.

Minnesota Statutes 2018, section 18C.70, subdivision 5, is amended to read:

Subd. 5.

Expiration.

This section expires June 30, deleted text begin 2020 deleted text end new text begin 2025 new text end .

Sec. 6.

Minnesota Statutes 2018, section 18C.71, subdivision 1, is amended to read:

Subdivision 1.

Eligible projects.

Eligible project activities include research, education,
and technology transfer related to the production and application of fertilizer, soil
amendments, and other plant amendments. Chosen projects must contain a component of
outreach that achieves a timely dissemination of findings and their applicability to the
production agricultural community new text begin or metropolitan fertilizer users new text end .

Sec. 7.

Minnesota Statutes 2018, section 18C.71, subdivision 4, is amended to read:

Subd. 4.

Expiration.

This section expires June 30, deleted text begin 2020 deleted text end new text begin 2025 new text end .

Sec. 8.

Minnesota Statutes 2018, section 18C.80, subdivision 2, is amended to read:

Subd. 2.

Expiration.

This section expires June 30, deleted text begin 2020 deleted text end new text begin 2025 new text end .

Sec. 9.

new text begin [18D.40] ENHANCED PENALTIES; OUTDOOR RECREATION LANDS.
new text end

new text begin Notwithstanding limitations placed on administrative or civil penalty amounts under
sections 18D.315 and 18D.325, a person who applies a pesticide resulting in damage to
adjacent property that is part of the state outdoor recreation system may be subject to a
monetary penalty equal to twice the amount that the commissioner would otherwise assess
for a comparable violation.
new text end

Sec. 10.

Minnesota Statutes 2018, section 18K.02, subdivision 3, is amended to read:

Subd. 3.

Industrial hemp.

"Industrial hemp" means the plant Cannabis sativa L. and
any part of the plant, whether growing or not, new text begin including the plant's seeds, and all the plant's
derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether
growing or not, new text end with a delta-9 tetrahydrocannabinol concentration of not more than 0.3
percent on a dry weight basis. Industrial hemp is not marijuana as defined in section 152.01,
subdivision 9.

Sec. 11.

Minnesota Statutes 2018, section 18K.03, is amended to read:

18K.03 AGRICULTURAL CROP; POSSESSION AUTHORIZED.

Industrial hemp is an agricultural crop in this state. A person may possess, transport,
process, sell, or buy industrial hemp that is grown pursuant to this chapter new text begin or lawfully grown
in another state new text end .

Sec. 12.

Minnesota Statutes 2018, section 28A.16, is amended to read:

28A.16 PERSONS SELLING LIQUOR.

new text begin (a) new text end The provisions of the Minnesota consolidated food licensing law, sections 28A.01
to 28A.16 and acts amendatory thereto, shall not apply to persons licensed to sell 3.2 percent
malt liquor "on-sale" as provided in section 340A.403, or to persons licensed to sell
intoxicating liquors "on-sale" or "off-sale" as provided in sections 340A.404 to 340A.407,
provided that these persons sell only ice manufactured and packaged by another, or bottled
or canned soft drinks and prepacked candy at retail.

new text begin (b) When an exclusive liquor store is not exempt under paragraph (a), the commissioner
must exclude all gross sales of off-sale alcoholic beverages when determining the applicable
license fee under section 28A.08, subdivision 3. For purposes of this paragraph, "exclusive
liquor store" and "alcoholic beverage" have the meanings given in section 340A.101.
new text end

Sec. 13.

Minnesota Statutes 2018, section 41B.02, subdivision 10a, as amended by Laws
2019, chapter 38, section 21, is amended to read:

Subd. 10a.

Livestock expansion new text begin and modernization new text end .

"Livestock expansion new text begin and
modernization new text end " means the purchase of a livestock farm or improvements to a livestock
operation, including the purchase and construction or installation of improvements to land,
buildings, and other permanent structures, including equipment incorporated in or
permanently affixed to the land, buildings, or structures, which are useful for and intended
to be used for the purpose of raising livestock.

Sec. 14.

Minnesota Statutes 2018, section 41B.045, is amended to read:

41B.045 LIVESTOCK EXPANSION new text begin AND MODERNIZATION new text end LOAN PROGRAM.

Subdivision 1.

Establishment.

The authority may establish, adopt rules for, and
implement a loan program to finance livestock expansions new text begin and modernizations new text end in the state.

Subd. 2.

Loan participation.

The authority may participate in a livestock expansion
new text begin and modernization new text end loan with an eligible lender to a livestock farmer who meets the
requirements of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively
engaged in a livestock operation. A prospective borrower must have a total net worth,
including assets and liabilities of the borrower's spouse and dependents, of less than
$1,700,000 in 2017 and an amount in subsequent years which is adjusted for inflation by
multiplying that amount by the cumulative inflation rate as determined by the United States
All-Items Consumer Price Index.

Participation is limited to 45 percent of the principal amount of the loan or $525,000,
whichever is less. The interest rates and repayment terms of the authority's participation
interest may be different from the interest rates and repayment terms of the lender's retained
portion of the loan.

Subd. 3.

Specifications.

Each loan participation must be secured by a mortgage on real
property and such other security as the authority may require.

Subd. 4.

Application and origination fee.

The authority may impose a reasonable
nonrefundable application fee for each application for a loan participation and an origination
fee for each loan issued under the livestock expansion new text begin and modernization new text end loan program.
The origination fee initially shall be set at 1.5 percent and the application fee at $50. The
authority may review the fees annually and make adjustments as necessary. The fees must
be deposited in the state treasury and credited to the Rural Finance Authority administrative
account established in section 41B.03.

Subd. 5.

Interest rate.

The interest rate per annum on the livestock expansion new text begin and
modernization new text end loan participation must be at the rate of interest determined by the authority
to be necessary to provide for the timely payment of principal and interest when due on
bonds or other obligations of the authority issued under this chapter, to provide financing
for loan participations made under the livestock expansion new text begin and modernization new text end loan program,
and to provide for reasonable and necessary costs of issuing, carrying, administering, and
securing the bonds or notes and to pay the costs incurred and to be incurred by the authority
in the implementation of the livestock expansion new text begin and modernization new text end loan program.

Sec. 15.

Minnesota Statutes 2018, section 41B.055, subdivision 4, is amended to read:

Subd. 4.

Eligible expenditures.

Money may be used for loans for the acquisition of
equipment for animal housing, confinement, animal feeding, milk production, and waste
management, including the following, if related to animal husbandry:

(1) fences;

(2) watering facilities;

(3) feed storage and handling equipment;

(4) milking parlors;

(5) milking equipment new text begin , including robotic equipment new text end ;

(6) scales;

(7) milk storage and cooling facilities;

(8) manure pumping and storage facilities;

(9) capital investment in pasture;

(10) hoop barns;

(11) portable structures;

(12) hay and forage equipment; and

(13) related structural work for the installation of equipment.

Sec. 16.

Minnesota Statutes 2018, section 116.06, is amended by adding a subdivision to
read:

new text begin Subd. 16a. new text end

new text begin Pastures. new text end

new text begin "Pastures" means areas, including winter feeding areas as part of
a grazing area, where grass or other growing plants are used for grazing of livestock and
where the concentration of animals allows a vegetative cover to be maintained during the
growing season. "Pastures" also includes agricultural land that is used for growing crops
during the growing season and is used for grazing of livestock on vegetation or crop residues
during the winter. In either case, a cover of vegetation or crop residues is not required:
new text end

new text begin (1) in the immediate vicinity of supplemental feeding or watering devices;
new text end

new text begin (2) in associated corrals and chutes where livestock are gathered for the purpose of
sorting, veterinary services, loading and unloading trucks and trailers, and other necessary
activities related to good animal husbandry practices;
new text end

new text begin (3) in associated livestock access lanes used to convey livestock to and from areas of
the pasture; and
new text end

new text begin (4) in sacrificial areas: (i) that are part of a larger pasture system; (ii) are used to
temporarily accommodate livestock due to an extraordinary situation for as short a time
period as possible not to exceed 90 days during the growing season; (iii) are used to protect
other pasture areas when adverse soil or weather conditions pose a risk of damaging the
pastures; and (iv) on which the vegetation is naturally restored or replanted after the adverse
soil or weather conditions are removed and the livestock are moved to other areas of the
pasture.
new text end

Sec. 17.

Minnesota Statutes 2018, section 116.07, subdivision 7, is amended to read:

Subd. 7.

Counties; processing applications for animal lot permits.

Any Minnesota
county board may, by resolution, with approval of the Pollution Control Agency, assume
responsibility for processing applications for permits required by the Pollution Control
Agency under this section for livestock feedlots, poultry lots or other animal lots. The
responsibility for permit application processing, if assumed by a county, may be delegated
by the county board to any appropriate county officer or employee.

(a) For the purposes of this subdivision, the term "processing" includes:

(1) the distribution to applicants of forms provided by the Pollution Control Agency;

(2) the receipt and examination of completed application forms, and the certification,
in writing, to the Pollution Control Agency either that the animal lot facility for which a
permit is sought by an applicant will comply with applicable rules and standards, or, if the
facility will not comply, the respects in which a variance would be required for the issuance
of a permit; and

(3) rendering to applicants, upon request, assistance necessary for the proper completion
of an application.

(b) For the purposes of this subdivision, the term "processing" may include, at the option
of the county board, issuing, denying, modifying, imposing conditions upon, or revoking
permits pursuant to the provisions of this section or rules promulgated pursuant to it, subject
to review, suspension, and reversal by the Pollution Control Agency. The Pollution Control
Agency shall, after written notification, have 15 days to review, suspend, modify, or reverse
the issuance of the permit. After this period, the action of the county board is final, subject
to appeal as provided in chapter 14. For permit applications filed after October 1, 2001,
section 15.99 applies to feedlot permits issued by the agency or a county pursuant to this
subdivision.

(c) For the purpose of administration of rules adopted under this subdivision, the
commissioner and the agency may provide exceptions for cases where the owner of a feedlot
has specific written plans to close the feedlot within five years. These exceptions include
waiving requirements for major capital improvements.

(d) For purposes of this subdivision, a discharge caused by an extraordinary natural
event such as a precipitation event of greater magnitude than the 25-year, 24-hour event,
tornado, or flood in excess of the 100-year flood is not a "direct discharge of pollutants."

(e) In adopting and enforcing rules under this subdivision, the commissioner shall
cooperate closely with other governmental agencies.

(f) The Pollution Control Agency shall work with the Minnesota Extension Service, the
Department of Agriculture, the Board of Water and Soil Resources, producer groups, local
units of government, as well as with appropriate federal agencies such as the Natural
Resources Conservation Service and the Farm Service Agency, to notify and educate
producers of rules under this subdivision at the time the rules are being developed and
adopted and at least every two years thereafter.

(g) The Pollution Control Agency shall adopt rules governing the issuance and denial
of permits for livestock feedlots, poultry lots or other animal lots pursuant to this section.
Pastures are exempt from the rules authorized under this paragraph new text begin . No feedlot permit shall
include any terms or conditions that impose any requirements related to any pastures owned
or utilized by the feedlot operator other than restrictions under a manure management plan new text end .
A feedlot permit is not required for livestock feedlots with more than ten but less than 50
animal units; provided they are not in shoreland areas. A livestock feedlot permit does not
become required solely because of a change in the ownership of the buildings, grounds, or
feedlot. These rules apply both to permits issued by counties and to permits issued by the
Pollution Control Agency directly.

(h) The Pollution Control Agency shall exercise supervising authority with respect to
the processing of animal lot permit applications by a county.

(i) Any new rules or amendments to existing rules proposed under the authority granted
in this subdivision, or to implement new fees on animal feedlots, must be submitted to the
members of legislative policy and finance committees with jurisdiction over agriculture and
the environment prior to final adoption. The rules must not become effective until 90 days
after the proposed rules are submitted to the members.

(j) Until new rules are adopted that provide for plans for manure storage structures, any
plans for a liquid manure storage structure must be prepared or approved by a registered
professional engineer or a United States Department of Agriculture, Natural Resources
Conservation Service employee.

(k) A county may adopt by ordinance standards for animal feedlots that are more stringent
than standards in Pollution Control Agency rules.

(l) After January 1, 2001, a county that has not accepted delegation of the feedlot permit
program must hold a public meeting prior to the agency issuing a feedlot permit for a feedlot
facility with 300 or more animal units, unless another public meeting has been held with
regard to the feedlot facility to be permitted.

(m) After the proposed rules published in the State Register, volume 24, number 25, are
finally adopted, the agency may not impose additional conditions as a part of a feedlot
permit, unless specifically required by law or agreed to by the feedlot operator.

(n) For the purposes of feedlot permitting, a discharge from land-applied manure or a
manure stockpile that is managed according to agency rule must not be subject to a fine for
a discharge violation.

(o) For the purposes of feedlot permitting, manure that is land applied, or a manure
stockpile that is managed according to agency rule, must not be considered a discharge into
waters of the state, unless the discharge is to waters of the state, as defined by section
103G.005, subdivision 17, except type 1 or type 2 wetlands, as defined in section 103G.005,
subdivision 17b, and does not meet discharge standards established for feedlots under agency
rule.

(p) Unless the upgrade is needed to correct an immediate public health threat under
section 145A.04, subdivision 8, or the facility is determined to be a concentrated animal
feeding operation under Code of Federal Regulations, title 40, section 122.23, in effect on
April 15, 2003, the agency may not require a feedlot operator:

(1) to spend more than $3,000 to upgrade an existing feedlot with less than 300 animal
units unless cost-share money is available to the feedlot operator for 75 percent of the cost
of the upgrade; or

(2) to spend more than $10,000 to upgrade an existing feedlot with between 300 and
500 animal units, unless cost-share money is available to the feedlot operator for 75 percent
of the cost of the upgrade or $50,000, whichever is less.

deleted text begin (q) For the purposes of this section, "pastures" means areas, including winter feeding
areas as part of a grazing area, where grass or other growing plants are used for grazing and
where the concentration of animals allows a vegetative cover to be maintained during the
growing season except that vegetative cover is not required:
deleted text end

deleted text begin (1) in the immediate vicinity of supplemental feeding or watering devices;
deleted text end

deleted text begin (2) in associated corrals and chutes where livestock are gathered for the purpose of
sorting, veterinary services, loading and unloading trucks and trailers, and other necessary
activities related to good animal husbandry practices; and
deleted text end

deleted text begin (3) in associated livestock access lanes used to convey livestock to and from areas of
the pasture.
deleted text end

deleted text begin (r) deleted text end new text begin (q) new text end A feedlot operator who stores and applies up to 100,000 gallons per calendar year
of private truck wash wastewater resulting from trucks that transport animals or supplies to
and from the feedlot does not require a permit to land-apply industrial by-products if the
feedlot operator stores and applies the wastewater in accordance with Pollution Control
Agency requirements for land applications of industrial by-product that do not require a
permit.

deleted text begin (s) deleted text end new text begin (r) new text end A feedlot operator who holds a permit from the Pollution Control Agency to
land-apply industrial by-products from a private truck wash is not required to have a certified
land applicator apply the private truck wash wastewater if the wastewater is applied by the
feedlot operator to cropland owned or leased by the feedlot operator or by a commercial
animal waste technician licensed by the commissioner of agriculture under chapter 18C.
For purposes of this paragraph and paragraph deleted text begin (r) deleted text end new text begin (q) new text end , "private truck wash" means a truck
washing facility owned or leased, operated, and used only by a feedlot operator to wash
trucks owned or leased by the feedlot operator and used to transport animals or supplies to
and from the feedlot.

Sec. 18.

Minnesota Statutes 2018, section 116.07, subdivision 7d, is amended to read:

Subd. 7d.

Exemption.

deleted text begin (a) deleted text end Notwithstanding subdivision 7 or Minnesota Rules, chapter
7020, to the contrary, and notwithstanding the proximity to public or private waters, an
owner or resident of agricultural land on which livestock have been allowed to pasture at
any time during the ten-year period beginning January 1, 2010, is permanently exempt from
requirements related to feedlot or manure management on that land for so long as the property
remains in pasture.

deleted text begin (b) For the purposes of this subdivision, "pasture" means areas where livestock graze
on grass or other growing plants. Pasture also means agricultural land where livestock are
allowed to forage during the winter time and which land is used for cropping purposes in
the growing season. In either case, the concentration of animals must be such that a vegetative
cover, whether of grass, growing plants, or crops, is maintained during the growing season
except in the immediate vicinity of temporary supplemental feeding or watering devices.
deleted text end

Sec. 19. new text begin INDUSTRIAL HEMP; RULEMAKING.
new text end

new text begin After consulting with stakeholders, the commissioner of agriculture may use the expedited
rulemaking process in Minnesota Statutes, section 14.389, to adopt the rules required under
Minnesota Statutes, section 18K.06, to conform to the Agriculture Improvement Act of
2018, Public Law 115-334, and federal rules authorized under that act. The commissioner
of agriculture's authority to adopt rules under this section expires June 30, 2020.
new text end

Sec. 20. new text begin INDUSTRIAL HEMP; PLAN AND REPORT.
new text end

new text begin (a) The commissioner of agriculture must submit a plan to the secretary of the United
States Department of Agriculture and request primary regulatory authority over the
production of industrial hemp in this state, as provided under section 10113 of the Agriculture
Improvement Act of 2018.
new text end

new text begin (b) The commissioner of agriculture, in consultation with the commissioners of public
safety and health, must develop a framework for regulating the possession and use of
tetrahydrocannabinol resulting from industrial hemp processing, including but not limited
to the extraction of cannabidiol or other components. No later than February 15, 2020, the
commissioner of agriculture must submit the proposed framework to the chairs and ranking
minority members of the legislative committees and divisions with jurisdiction over
agriculture, public safety, and health.
new text end

Sec. 21. new text begin EMERGING FARMERS; REPORT.
new text end

new text begin No later than February 1, 2020, the commissioner of agriculture must report
recommendations to the legislative committees and divisions with jurisdiction over agriculture
finance regarding how best to cultivate and support emerging farmers, with priority given
to emerging farmers who are women, veterans, persons with disabilities, American Indian
or Alaskan Native, and members of communities of color.
new text end

Sec. 22. new text begin NURSERY STOCK; REPORT.
new text end

new text begin By March 1, 2020, the commissioner of agriculture must report recommendations to the
members of the legislative committees or divisions with jurisdiction over agriculture policy
regarding the regulatory oversight of nursery stock labeled as beneficial to pollinators. The
report must include a summary of the Minnesota Department of Agriculture's technical
ability to test for insecticides on different parts of plants that comprise nursery stock,
including the minimum detectable concentration for various insecticides, and the cost per
test.
new text end

ARTICLE 3

BIOINCENTIVE PROGRAM CHANGES

Section 1.

Minnesota Statutes 2018, section 41A.15, subdivision 2, is amended to read:

Subd. 2.

Advanced biofuel.

"Advanced biofuel" deleted text begin has the meaning given in section
239.051, subdivision 1a. deleted text end new text begin means a renewable fuel, other than ethanol derived from corn
starch, that has lifecycle greenhouse gas emissions that are at least 50 percent less than
baseline lifecycle greenhouse gas emissions.
new text end

Sec. 2.

Minnesota Statutes 2018, section 41A.15, is amended by adding a subdivision to
read:

new text begin Subd. 2e. new text end

new text begin Biomass. new text end

new text begin "Biomass" means any organic matter that is available on a renewable
or recurring basis, including agricultural crops and trees, wood and wood waste and residues,
plants including aquatic plants, grasses, residues, fibers, animal waste, and the organic
portion of solid wastes.
new text end

Sec. 3.

Minnesota Statutes 2018, section 41A.15, subdivision 10, is amended to read:

Subd. 10.

Renewable chemical.

"Renewable chemical" means a chemical deleted text begin with biobased
content. deleted text end new text begin , polymer, monomer, plastic, or composite material that is entirely produced from
biomass.
new text end

Sec. 4.

Minnesota Statutes 2018, section 41A.16, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source new text begin from Minnesota new text end at least 80 percent deleted text begin raw materials from Minnesota. deleted text end new text begin of the biomass
used to produce an advanced biofuel, except that, new text end if a facility is sited 50 miles or less from
the state border, deleted text begin raw materials deleted text end new text begin biomass used to produce an advanced biofuel new text end may be sourced
from new text begin outside of Minnesota, but only if at least 80 percent of the biomass is sourced from
new text end within a 100-mile radius new text begin of the facility or from within Minnesota new text end . deleted text begin Raw materials must be
from agricultural or forestry sources or from solid waste. deleted text end The facility must be located in
Minnesota, must begin production at a specific location by June 30, 2025, and must not
begin operating above 23,750 MMbtu of quarterly new text begin advanced new text end 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 deleted text begin 23,750 deleted text end new text begin 1,500 new text end MMbtu of new text begin advanced
new text end 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.

Sec. 5.

Minnesota Statutes 2018, 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 deleted text begin or deleted text end new text begin , new text end
starch new text begin , oil, or animal fat new text end 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. deleted text begin The commissioner shall award
payments on a first-come, first-served basis within the limits of available funding deleted text end new text begin 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 new text end .

(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.

Sec. 6.

Minnesota Statutes 2018, section 41A.16, subdivision 4, is amended to read:

Subd. 4.

Cellulosic forestry biomass requirements.

All forestry-derived cellulosic
biomass new text begin used for advanced biofuel production new text end must be produced using Minnesota deleted text begin state deleted text end new text begin
forest new text end biomass harvesting guidelines or the equivalent. All new text begin cellulosic new text end biomass from brushlands
must be produced using Minnesota brushland deleted text begin harvesting deleted text end biomass deleted text begin harvest deleted text end new text begin harvesting new text end
guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from land
parcels greater than 160 acres must be certified by the Forest Stewardship Council, new text begin the
new text end Sustainable Forestry Initiative, or new text begin the new text end American Tree Farm System. Uncertified land from
parcels of 160 acres or less new text begin , tribal lands, new text end and federal land must deleted text begin be harvested by a logger
who has completed training for biomass harvesting from the Minnesota logger education
program or the equivalent and deleted text end have a forest deleted text begin stewardship deleted text end new text begin management new text end plan deleted text begin . deleted text end new text begin , as defined in
section 290C.02, subdivision 7, or the equivalent, and be harvested by a logger who has
completed training for biomass harvesting from the Minnesota logger education program
or the equivalent.
new text end

Sec. 7.

Minnesota Statutes 2018, section 41A.17, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this deleted text begin program deleted text end new text begin section new text end
must source new text begin from Minnesota new text end at least 80 percent deleted text begin biobased content from Minnesota. deleted text end new text begin of the
biomass used to produce a renewable chemical, except that, new text end if a facility is sited 50 miles or
less from the state border, deleted text begin biobased content must deleted text end new text begin biomass used to produce a renewable
chemical may new text end be sourced from new text begin outside of Minnesota, but only if at least 80 percent of the
biomass is sourced from new text end within a 100-mile radius new text begin of the facility or from within Minnesota new text end .
deleted text begin Biobased content must be from agricultural or forestry sources or from solid waste. deleted text end The
facility must be located in Minnesota, must begin production at a specific location by June
30, 2025, and must not begin production of deleted text begin 750,000 deleted text end new text begin 250,000 new text end 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 deleted text begin 750,000 deleted text end new text begin 250,000 new text end
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.

Sec. 8.

Minnesota Statutes 2018, 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, new text begin starch, oil, or animal fat, new text end 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. deleted text begin The commissioner shall award payments on a first-come,
first-served basis within the limits of available funding deleted text end new text begin 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 new text end .

new text begin (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.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end 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.

Sec. 9.

Minnesota Statutes 2018, section 41A.17, subdivision 3, is amended to read:

Subd. 3.

Cellulosic new text begin forestry new text end biomass requirements.

All forestry-derived cellulosic
biomass new text begin used for renewable chemical production new text end must be produced using Minnesota deleted text begin state deleted text end new text begin
forest new text end biomass harvesting guidelines or the equivalent. All cellulosic biomass from brushlands
must be produced using Minnesota brushland deleted text begin harvesting deleted text end biomass deleted text begin harvest deleted text end new text begin harvesting new text end
guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from land
parcels greater than 160 acres must be certified by the Forest Stewardship Council, new text begin the
new text end Sustainable Forestry Initiative, or new text begin the new text end American Tree Farm System. Uncertified land from
parcels of 160 acres or less new text begin , tribal lands, new text end and federal land must deleted text begin be harvested by a logger
who has completed training for biomass harvesting from the Minnesota logger education
program or the equivalent and deleted text end have a forest deleted text begin stewardship deleted text end new text begin management new text end plan new text begin , as defined in
section 290C.02, subdivision 7, or the equivalent, and be harvested by a logger who has
completed training for biomass harvesting from the Minnesota logger education program
or the equivalent new text end .

Sec. 10.

Minnesota Statutes 2018, section 41A.18, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source new text begin from Minnesota new text end at least 80 percent deleted text begin raw materials from Minnesota. deleted text end new text begin of the biomass
used for biomass thermal production, except that, new text end if a facility is sited 50 miles or less from
the state border, deleted text begin raw materials should deleted text end new text begin biomass used for biomass thermal production may
new text end be sourced from new text begin outside of Minnesota, but only if at least 80 percent of the biomass is
sourced from new text end within a 100-mile radius new text begin of the facility, or from within Minnesota new text end . deleted text begin Raw
materials deleted text end new text begin Biomass new text end must be from agricultural or forestry sources. The facility must be located
in Minnesota, must have begun production at a specific location by June 30, 2025, 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.

Sec. 11.

Minnesota Statutes 2018, 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. deleted text begin The commissioner
shall award payments on a first-come, first-served basis within the limits of available funding deleted text end new text begin
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 new text end .

(d) An eligible facility may blend a cellulosic feedstock with other fuels in the biomass
thermal production facility, but only the percentage attributable to deleted text begin cellulosic material deleted text end new text begin biomass
meeting the cellulosic forestry biomass requirements or agricultural cellulosic biomass
sourcing plan new text end is eligible to receive payment.

(e) new text begin 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.
new text end

new text begin (f) new text end 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.

Sec. 12.

Minnesota Statutes 2018, section 41A.18, subdivision 3, is amended to read:

Subd. 3.

Cellulosic new text begin forestry new text end biomass requirements.

All forestry-derived cellulosic
biomass new text begin used for biomass thermal production new text end must be produced using Minnesota deleted text begin state deleted text end new text begin forest new text end
biomass harvesting guidelines or the equivalent. All new text begin cellulosic new text end biomass from deleted text begin brushland deleted text end new text begin
brushlands new text end must be produced using Minnesota brushland deleted text begin harvesting deleted text end biomass new text begin harvesting
new text end guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from land
parcels greater than 160 acres must be certified by the Forest Stewardship Council, the
Sustainable Forestry Initiative, or new text begin the new text end American Tree Farm new text begin System new text end . Uncertified land from
parcels of 160 acres or less new text begin , tribal lands, new text end and federal land must deleted text begin be harvested by a logger
who has completed training for biomass harvesting from the Minnesota logger education
program or the equivalent and deleted text end have a forest deleted text begin stewardship deleted text end new text begin management new text end plan deleted text begin . deleted text end new text begin , as defined in
section 290C.02, subdivision 7, or the equivalent and be harvested by a logger who has
completed training for biomass harvesting from the Minnesota logger education program
or the equivalent.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 41A.15, subdivisions 2a and 2b, new text end new text begin are repealed.
new text end

ARTICLE 4

GRAIN BUYERS AND GRAIN WAREHOUSES

Section 1.

Minnesota Statutes 2018, section 223.16, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

For the purpose of sections 223.15 to deleted text begin 223.22 deleted text end new text begin 223.23 new text end , the
terms defined in this section have the meanings given them.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain buyer
licenses issued on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2018, section 223.16, subdivision 2a, is amended to read:

Subd. 2a.

Cash sale.

new text begin (a) new text end "Cash sale" means deleted text begin :
deleted text end

deleted text begin (a) deleted text end a sale new text begin that is not reduced to writing as a voluntary extension of credit contract and
new text end for which payment is tendered to the seller not later than the close of business on the next
business day after the sale, either in cash or by check, or by mailing or wiring funds to the
seller's account deleted text begin in the amount of at least 80 percent of the value of the grain at delivery; or deleted text end new text begin .
new text end

(b) deleted text begin a sale of a shipment of grain which is part of a multiple shipment sale, for which a
scale ticket clearly marked "CASH" has been received by the seller before completion of
the entire sale, and for which payment is tendered in cash or by check not later than ten
days after the sale of that shipment, except that when the entire sale is completed, payment
is tendered in cash or by check not later than the close of business on the next business day,
or within 48 hours, whichever is later. deleted text end new text begin For the purposes of this subdivision, "cash" means
currency or an equivalent manner of payment including but not limited to a certified check;
a cashier's check; and a postal, bank, or express money order in which the amount of payment
is verified and secured before issuance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain buyer
licenses issued on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2018, section 223.16, subdivision 4, is amended to read:

Subd. 4.

Grain.

"Grain" means any cereal grain, coarse grain, or oilseed in unprocessed
form for which a standard has been established by the United States Secretary of Agriculture
deleted text begin or the Minnesota Board of Grain Standards deleted text end , dry edible beans, or other agricultural crops
designated by the commissioner by rule.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain buyer
licenses issued on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2018, section 223.17, subdivision 3, is amended to read:

Subd. 3.

Grain buyers and storage account; fees.

new text begin (a) new text end The commissioner shall set the
fees for inspections under sections 223.15 to 223.22 at levels necessary to pay the expenses
of administering and enforcing sections 223.15 to 223.22.

The fee for any license issued or renewed after June 30, 2005, shall be set according to
the following schedule:

deleted text begin (a) deleted text end new text begin (1) new text end $140 plus $110 for each additional location for grain buyers whose gross annual
purchases are less than $100,000;

deleted text begin (b) deleted text end new text begin (2) new text end $275 plus $110 for each additional location for grain buyers whose gross annual
purchases are at least $100,000, but not more than $750,000;

deleted text begin (c) deleted text end new text begin (3) new text end $415 plus $220 for each additional location for grain buyers whose gross annual
purchases are more than $750,000 but not more than $1,500,000;

deleted text begin (d) deleted text end new text begin (4) new text end $550 plus $220 for each additional location for grain buyers whose gross annual
purchases are more than $1,500,000 but not more than $3,000,000; and

deleted text begin (e) deleted text end new text begin (5) new text end $700 plus $220 for each additional location for grain buyers whose gross annual
purchases are more than $3,000,000.

new text begin (b) In addition to the license fee required under paragraph (a), a grain buyer must pay
to the commissioner an annual examination fee for each licensed location, as follows:
new text end

	new text begin Bushel Capacity new text end	new text begin Examination Fee new text end
	new text begin Examinations without a grain measure new text end	new text begin $ new text end	new text begin 100 new text end
	new text begin Less than 150,001 new text end	new text begin $ new text end	new text begin 300 new text end
	new text begin 150,001 to 250,000 new text end	new text begin $ new text end	new text begin 425 new text end
	new text begin 250,001 to 500,000 new text end	new text begin $ new text end	new text begin 545 new text end
	new text begin 500,001 to 750,000 new text end	new text begin $ new text end	new text begin 700 new text end
	new text begin 750,001 to 1,000,000 new text end	new text begin $ new text end	new text begin 865 new text end
	new text begin 1,000,001 to 1,200,000 new text end	new text begin $ new text end	new text begin 1,040 new text end
	new text begin 1,200,001 to 1,500,000 new text end	new text begin $ new text end	new text begin 1,205 new text end
	new text begin 1,500,001 to 2,000,000 new text end	new text begin $ new text end	new text begin 1,380 new text end
	new text begin More than 2,000,000 new text end	new text begin $ new text end	new text begin 1,555 new text end

new text begin (c) The fee for any supplemental examination required by the commissioner under section
223.23 is $55 per hour per examiner.
new text end

new text begin (d) A licensed grain buyer meeting the annual examination requirements under section
223.23 is exempt from the fees under paragraph (b) if the annual examination is conducted
by the Agricultural Marketing Service of the United State Department of Agriculture.
new text end

new text begin (e) new text end A penalty amount not to exceed ten percent of the fees due may be imposed by the
commissioner for each month for which the fees are delinquent.

new text begin (f) new text end There is created the grain buyers and storage account in the agricultural fund. Money
collected pursuant to sections 223.15 to deleted text begin 223.19 deleted text end new text begin 223.23 new text end shall be paid into the state treasury
and credited to the grain buyers and storage account deleted text begin and deleted text end new text begin . Money in the account, including
interest, new text end is appropriated to the commissioner for the administration and enforcement of
sections 223.15 to deleted text begin 223.22 deleted text end new text begin 223.23 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain buyer
licenses issued on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2018, section 223.17, subdivision 4, is amended to read:

Subd. 4.

Bond.

(a) new text begin Except as provided in paragraphs (c) to (e), new text end before a grain buyer's
license is issued, the applicant for the license must file with the commissioner a bond in a
penal sum prescribed by the commissioner but not less than the following amounts:

(1) $10,000 for grain buyers whose gross annual purchases are $100,000 or less;

(2) $20,000 for grain buyers whose gross annual purchases are more than $100,000 but
not more than $750,000;

(3) $30,000 for grain buyers whose gross annual purchases are more than $750,000 but
not more than $1,500,000;

(4) $40,000 for grain buyers whose gross annual purchases are more than $1,500,000
but not more than $3,000,000;

(5) $50,000 for grain buyers whose gross annual purchases are more than $3,000,000
but not more than $6,000,000;

(6) $70,000 for grain buyers whose gross annual purchases are more than $6,000,000
but not more than $12,000,000;

(7) $125,000 for grain buyers whose gross annual purchases are more than $12,000,000
but not more than $24,000,000; and

(8) $150,000 for grain buyers whose gross annual purchases exceed $24,000,000.

(b) deleted text begin A grain buyer who has filed a bond with the commissioner prior to July 1, 2004, is
not required to increase the amount of the bond to comply with this section until July 1,
2005. The commissioner may postpone an increase in the amount of the bond until July 1,
2006, if a licensee demonstrates that the increase will impose undue financial hardship on
the licensee, and that producers will not be harmed as a result of the postponement. The
commissioner may impose other restrictions on a licensee whose bond increase has been
postponed. deleted text end The amount of the bond shall be based on the most recent gross annual grain
purchase report of the grain buyer.

(c) A first-time applicant for a grain buyer's license shall file a $50,000 bond with the
commissioner. This bond shall remain in effect for the first year of the license. Thereafter,
the licensee shall comply with the applicable bonding requirements contained in paragraph
(a), clauses (1) to (8).

(d) In lieu of the bond required by this subdivision the applicant may deposit with the
commissioner of management and budget deleted text begin cash, a certified check, a cashier's check, a postal,
bank, or express money order, assignable bonds or notes of the United States, or an
assignment of a bank savings account or investment certificate or deleted text end an irrevocable bank letter
of credit as defined in section 336.5-102, in the same amount as would be required for a
bond.

new text begin (e) 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 $100,000 or less.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end Bonds must be continuous until canceled. To cancel a bond, a surety must provide
90 days' written notice of the bond's termination date to the licensee and the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain buyer
licenses issued on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2018, section 223.17, subdivision 5, is amended to read:

Subd. 5.

Cash sales; manner of payment.

For a cash sale of a shipment of grain deleted text begin which
is part of a multiple shipment sale deleted text end , the grain buyer shall tender payment to the seller in cash
deleted text begin or deleted text end new text begin , new text end by check new text begin , or by wiring or mailing payment to the seller's account. The grain buyer must
tender payment as required under this subdivision new text end not later than deleted text begin ten days after the sale of
that shipment, except that when the entire sale is completed, payment shall be tendered not
later than deleted text end the close of business on the next day new text begin after the sale of the shipment new text end , or within 48
hours new text begin after the sale of the shipment new text end , whichever is later. deleted text begin For other cash sales the grain buyer,
before the close of business on the next business day after the sale, shall tender payment to
the seller in cash or by check, or shall wire or mail funds to the seller's account in the amount
of at least 80 percent of the value of the grain at the time of delivery. The grain buyer shall
complete final settlement as rapidly as possible through ordinary diligence.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain buyer
licenses issued on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2018, section 223.17, subdivision 6, is amended to read:

Subd. 6.

Financial statements.

(a) new text begin Except as allowed in paragraph (c), a grain buyer
licensed under this chapter must annually submit to new text end the commissioner deleted text begin may require an annual deleted text end new text begin
a new text end financial statement deleted text begin from a licensee which has been deleted text end prepared in accordance with generally
accepted accounting principles new text begin . new text end deleted text begin and which meets the following requirements deleted text end new text begin The annual
financial statement required under this subdivision must also new text end :

(1) deleted text begin the financial statement shall deleted text end include, but not be limited to the following:

(i) a balance sheet;

(ii) a statement of income (profit and loss);

(iii) a statement of retained earnings;

(iv) a statement of changes in financial position; and

(v) a statement of the dollar amount of grain purchased in the previous fiscal year of the
grain buyer deleted text begin . deleted text end new text begin ;
new text end

(2) deleted text begin the financial statement shall deleted text end be accompanied by a compilation report of the financial
statement that is prepared by a grain commission firm or a management firm approved by
the commissioner or by an independent public accountant, in accordance with standards
established by the American Institute of Certified Public Accountants deleted text begin . Grain buyers
purchasing less than 150,000 bushels of grain per calendar year may submit a financial
statement prepared by a public accountant who is not an employee or a relative within the
third degree of kindred according to civil law. deleted text end new text begin ;
new text end

(3) deleted text begin the financial statement shall deleted text end be accompanied by a certification by the chief executive
officer or the chief executive officer's designee of the licensee, new text begin and where applicable, all
members of the governing board of directors new text end under penalty of perjury, that the financial
statement accurately reflects the financial condition of the licensee for the period specified
in the statement deleted text begin . deleted text end new text begin ;
new text end

new text begin (4) for grain buyers purchasing under $5,000,000 of grain annually, be reviewed by a
certified public accountant in accordance with standards established by the American Institute
of Certified Public Accountants, and must show that the financial statements are free from
material misstatements; and
new text end

new text begin (5) for grain buyers purchasing $5,000,000 or more of grain annually, be audited by a
certified public accountant in accordance with standards established by the American Institute
of Certified Public Accountants and must include an opinion statement from the certified
public accountant.
new text end

(b) Only one financial statement must be filed for a chain of warehouses owned or
operated as a single business entity, unless otherwise required by the commissioner. deleted text begin Any
grain buyer having a net worth in excess of $500,000,000 need not file the financial statement
required by this subdivision but must provide the commissioner with a certified net worth
statement. deleted text end All financial statements filed with the commissioner are private or nonpublic
data as provided in section 13.02.

new text begin (c) 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 $100,000 or less.
new text end

new text begin (d) The commissioner shall annually provide information on a person's fiduciary duties
to each licensee. To the extent practicable, the commissioner must direct each licensee to
provide this information to all persons required to certify the licensee's financial statement
under paragraph (a), clause (3).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain buyer
licenses issued on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2018, section 223.177, subdivision 2, is amended to read:

Subd. 2.

Oral contracts.

Any grain buyer entering into a voluntary extension of credit
contract orally or by phone shall give or mail to the seller a written confirmation conforming
to the requirements of section 223.175 deleted text begin before the close of the next business day deleted text end new text begin within ten
days of entering the voluntary extension of credit contract. Written confirmation of oral
contracts must meet the requirements of subdivision 3 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain buyer
licenses issued on or after that date.
new text end

Sec. 9.

Minnesota Statutes 2018, section 223.177, subdivision 3, is amended to read:

Subd. 3.

Contracts reduced to writing.

A voluntary extension of credit contract must
be reduced to writing by the grain buyer new text begin , new text end deleted text begin and deleted text end mailed or given to the seller deleted text begin before the close
of the next business day after the contract is entered into or, in the case of an oral or phone
contract, after the written confirmation is received by the seller. Provided, however, that if
a scale ticket has been received by the seller prior to the completion of the grain shipment,
the contract must be reduced to writing within ten days after the sale, but not later than the
close of the next business day after the completion of the entire sale deleted text end new text begin , and signed by both
buyer and seller within ten days of the date of delivery of the grain new text end . The form of the contract
shall comply with the requirements of section 223.175. A grain buyer may use an electronic
version of a voluntary extension of credit contract that contains the same information as a
written document and that conforms to the requirements of this chapter to which a seller
has applied an electronic signature in place of a written document. There must not at any
time be an electronic and paper voluntary extension of credit contract representing the same
lot of grain.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain buyer
licenses issued on or after that date.
new text end

Sec. 10.

Minnesota Statutes 2018, 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 deleted text begin 223.22 deleted text end new text begin 223.23 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain buyer
licenses issued on or after that date.
new text end

Sec. 11.

new text begin [223.23] ANNUAL EXAMINATION REQUIRED; SUPPLEMENTAL
EXAMINATIONS.
new text end

new text begin A licensed grain buyer is subject to an annual examination conducted by the commissioner
or the Agricultural Marketing Service of the United States Department of Agriculture.
Examinations must include a measurement of all grain owned and maintained by the grain
buyer. The commissioner may require supplemental examinations of a grain buyer as the
commissioner deems necessary.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain buyer
licenses issued on or after that date.
new text end

Sec. 12.

Minnesota Statutes 2018, section 232.21, subdivision 7, is amended to read:

Subd. 7.

Grain.

"Grain" means any cereal grain, coarse grain, or oilseed in unprocessed
form for which a standard has been established by the United States Secretary of Agriculture
deleted text begin or the Minnesota Board of Grain Standards deleted text end , dry edible beans, or agricultural crops designated
by the commissioner by rule.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain storage
licenses issued on or after that date.
new text end

Sec. 13.

Minnesota Statutes 2018, section 232.21, is amended by adding a subdivision to
read:

new text begin Subd. 7a. new text end

new text begin Grain bank. new text end

new text begin "Grain bank" means a feed-processing plant that receives and
stores grain it processes and returns to the grain's owner in amounts, at intervals, and with
added ingredients that are mutually agreeable to the grain's owner and the person operating
the plant. Grain bank does not include a seed cleaning plant.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain storage
licenses issued on or after that date.
new text end

Sec. 14.

Minnesota Statutes 2018, section 232.21, is amended by adding a subdivision to
read:

new text begin Subd. 15. new text end

new text begin Temporary storage. new text end

new text begin "Temporary storage" means grain stored in outdoor piles
or suitable structures, which are not in use for the entirety of the license period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain storage
licenses issued on or after that date.
new text end

Sec. 15.

Minnesota Statutes 2018, section 232.22, subdivision 3, is amended to read:

Subd. 3.

Fees; grain buyers and storage account.

new text begin (a) new text end There is created in the agricultural
fund an account known as the grain buyers and storage account. The commissioner shall
set the fees for examinations, certifications, and licenses under sections 232.20 to 232.24
at levels necessary to pay the costs of administering and enforcing sections 232.20 to 232.24.
All money collected pursuant to sections 232.20 to 232.24 shall be paid by the commissioner
into the state treasury and credited to the grain buyers and storage account deleted text begin and deleted text end new text begin . Money in
the account, including interest, new text end is appropriated to the commissioner for the administration
and enforcement of sections 232.20 to 232.24.

new text begin (b) new text end All money collected pursuant to chapter 231 shall be paid by the commissioner into
the grain buyers and storage account deleted text begin and deleted text end new text begin . Money in the account new text end is appropriated to the
commissioner for the administration and enforcement of chapter 231.

new text begin (c) new text end The fees for a license to store grain are as follows:

deleted text begin (a) deleted text end new text begin (1) new text end For a license to store grain, $110 for each home rule charter or statutory city or
town in which a public grain warehouse is operated.

deleted text begin (b) deleted text end new text begin (2) In addition to the license fee required under clause (1), new text end a person with a license
to store grain in a public grain warehouse is subject to an examination fee for each licensed
location, deleted text begin based on the following schedule for one examination deleted text end new text begin as follows new text end :

	Bushel Capacity	Examination Fee
	Less than 150,001	$	300
	150,001 to 250,000	$	425
	250,001 to 500,000	$	545
	500,001 to 750,000	$	700
	750,001 to 1,000,000	$	865
	1,000,001 to 1,200,000	$	1,040
	1,200,001 to 1,500,000	$	1,205
	1,500,001 to 2,000,000	$	1,380
	More than 2,000,000	$	1,555

deleted text begin (c) deleted text end new text begin (3) new text end The fee for deleted text begin the second examination deleted text end new text begin supplemental examinations required by the
commissioner under section 232.24 new text end is $55 per hour per examiner deleted text begin for warehouse operators
who choose to have it performed by the commissioner deleted text end .

(d) A penalty amount not to exceed ten percent of the fees due may be imposed by the
commissioner for each month for which the fees are delinquent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain storage
licenses issued on or after that date.
new text end

Sec. 16.

Minnesota Statutes 2018, section 232.22, subdivision 4, is amended to read:

Subd. 4.

Bonding.

(a) Before a license is issued, new text begin except as provided under paragraph
(c), new text end the applicant for a public grain warehouse operator's license shall file with the
commissioner a bond in a penal sum prescribed by the commissioner based on the annual
average storage liability as stated on the statement of grain in storage report or on the gross
annual grain purchase report, whichever is greater, and applying the following amounts:

(1) $10,000 for storages with annual average storage liability of more than $0 but not
more than $25,000;

(2) $20,000 for storages with annual average storage liability of more than $25,001 but
not more than $50,000;

(3) $30,000 for storages with annual average storage liability of more than $50,001 but
not more than $75,000;

(4) $50,000 for storages with annual average storage liability of more than $75,001 but
not more than $100,000;

(5) $75,000 for storages with annual average storage liability of more than $100,001
but not more than $200,000;

(6) $125,000 for storages with annual average storage liability of more than $200,001
but not more than $300,000;

(7) $175,000 for storages with annual average storage liability of more than $300,001
but not more than $400,000;

(8) $225,000 for storages with annual average storage liability of more than $400,001
but not more than $500,000;

(9) $275,000 for storages with annual average storage liability of more than $500,001
but not more than $600,000;

(10) $325,000 for storages with annual average storage liability of more than $600,001
but not more than $700,000;

(11) $375,000 for storages with annual average storage liability of more than $700,001
but not more than $800,000;

(12) $425,000 for storages with annual average storage liability of more than $800,001
but not more than $900,000;

(13) $475,000 for storages with annual average storage liability of more than $900,001
but not more than $1,000,000; and

(14) $500,000 for storages with annual average storage liability of more than $1,000,000.

(b) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
90 days' written notice of the bond's termination date to the licensee and the commissioner.

new text begin (c) In lieu of the bond required by this subdivision, the applicant may deposit with the
commissioner of management and budget an irrevocable bank letter of credit as defined in
section 336.5-102, in the same amount as would be required for a bond.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain storage
licenses issued on or after that date.
new text end

Sec. 17.

Minnesota Statutes 2018, section 232.23, subdivision 3, is amended to read:

Subd. 3.

Grain delivered considered stored.

All grain delivered to a public grain
warehouse operator shall be considered stored at the time of delivery, unless arrangements
have been made with the public grain warehouse operator prior to or at the time of delivery
to apply the grain on contract, for shipment or consignment or for cash sale. Grain may be
held in open storage or placed on a warehouse receipt. Warehouse receipts must be issued
for all grain held in open storage within six months of delivery to the warehouse unless the
depositor has signed a statement that the depositor does not desire a warehouse receipt. The
warehouse operator's tariff applies for any grain that is retained in open storage or under
warehouse receipt. new text begin All grain in temporary storage must be owned and exclusively maintained
by the licensee. Grain assigned to grain bank is considered stored grain.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain storage
licenses issued on or after that date.
new text end

Sec. 18.

Minnesota Statutes 2018, section 232.24, is amended to read:

232.24 SCHEDULE OF INSPECTION, FINANCIAL REPORTS.

Subdivision 1.

Schedule of examination.

A licensee under sections 232.20 to 232.24
is subject to deleted text begin two examinations deleted text end new text begin an examination new text end annually conducted by the commissioner or
the Agricultural Marketing Service of the United States Department of Agriculture. The
commissioner may deleted text begin , by rule, authorize one examination to be conducted by a qualified
nongovernmental unit deleted text end new text begin require supplemental examinations of a licensee as the commissioner
deems necessary new text end .

Subd. 2.

Financial reports.

A licensee under sections 232.20 to 232.24 deleted text begin upon request deleted text end
must provide to the commissioner a copy of the financial deleted text begin reports of an audit conducted by
a qualified nongovernmental unit containing information the commissioner requires deleted text end new text begin report
that satisfies the requirements under section 223.17, subdivision 6 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies to grain storage
licenses issued on or after that date.
new text end

Sec. 19. new text begin FIDUCIARY INFORMATION; GRAIN BUYING AND STORAGE.
new text end

new text begin The commissioner of agriculture, in consultation with the Minnesota State Bar
Association, must develop information concerning the fiduciary duties of the chief executive
officer and, where applicable, the governing board of directors of each licensed grain buyer
and licensed public grain warehouse. No later than March 1, 2020, the commissioner must
submit the information to the legislative committees and divisions with jurisdiction over
agriculture policy and finance.
new text end

ARTICLE 5

HOUSING FINANCE AGENCY APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
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 "2020" and "2021" used in this article mean that the appropriations listed under them
are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. "The
first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" is
fiscal years 2020 and 2021.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2020 new text end		new text begin 2021 new text end

Sec. 2. new text begin HOUSING FINANCE AGENCY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 64,048,000 new text end

new text begin $ new text end

new text begin 56,548,000 new text end

new text begin (a) The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin (b) Unless otherwise specified, this
appropriation is for transfer to the housing
development fund for the programs specified
in this section. Except as otherwise indicated,
this transfer is part of the agency's permanent
budget base.
new text end

new text begin Subd. 2. new text end new text begin Challenge Program new text end

new text begin 17,925,000 new text end

new text begin 12,925,000 new text end

new text begin (a) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
new text end

new text begin (b) Of this amount, $1,208,000 each year shall
be made available during the first 11 months
of the fiscal year exclusively for housing
projects for American Indians. Any funds not
committed to housing projects for American
Indians in the first 11 months of the fiscal year
shall be available for any eligible activity
under Minnesota Statutes, section 462A.33.
new text end

new text begin (c) The base for this program in fiscal year
2022 and beyond is $12,925,000.
new text end

new text begin Subd. 3. new text end new text begin Workforce Housing Development new text end

new text begin 2,000,000 new text end

new text begin 2,000,000 new text end

new text begin This appropriation is for the workforce
housing development program under
Minnesota Statutes, section 462A.39. If
requested by the applicant and approved by
the agency, funded properties may include a
portion of income and rent restricted units.
Funded properties may include
owner-occupied homes.
new text end

new text begin Subd. 4. new text end new text begin Manufactured Home Park Infrastructure Grants new text end

new text begin 2,000,000 new text end

new text begin 0 new text end

new text begin (a) This appropriation is for manufactured
home park infrastructure grants under
Minnesota Statutes, section 462A.2035,
subdivision 1b.
new text end

new text begin (b) The base for this program in fiscal year
2022 and beyond is $1,000,000.
new text end

new text begin Subd. 5. new text end new text begin Workforce Homeownership Program new text end

new text begin 500,000 new text end

new text begin 0 new text end

new text begin (a) This appropriation is for the workforce
homeownership program under Minnesota
Statutes, section 462A.38.
new text end

new text begin (b) The base for this program in fiscal year
2022 and beyond is $250,000.
new text end

new text begin Subd. 6. new text end new text begin Housing Trust Fund new text end

new text begin 11,646,000 new text end

new text begin 11,646,000 new text end

new text begin This appropriation is for deposit in the housing
trust fund account created under Minnesota
Statutes, section 462A.201, and may be used
for the purposes provided in that section.
new text end

new text begin Subd. 7. new text end new text begin Homework Starts with Home new text end

new text begin 1,750,000 new text end

new text begin 1,750,000 new text end

new text begin This appropriation is for the homework starts
with home program under Minnesota Statutes,
sections 462A.201, subdivision 2, paragraph
(a), clause (4), and 462A.204, subdivision 8,
to provide assistance to homeless or highly
mobile families with children eligible for
enrollment in a prekindergarten through grade
12 academic program.
new text end

new text begin Subd. 8. new text end new text begin Rental Assistance for Mentally Ill new text end

new text begin 4,338,000 new text end

new text begin 4,338,000 new text end

new text begin This appropriation is for the rental housing
assistance program for persons with a mental
illness or families with an adult member with
a mental illness under Minnesota Statutes,
section 462A.2097. Among comparable
proposals, the agency shall prioritize those
proposals that target, in part, eligible persons
who desire to move to more integrated,
community-based settings.
new text end

new text begin Subd. 9. new text end new text begin Family Homeless Prevention new text end

new text begin 10,269,000 new text end

new text begin 10,269,000 new text end

new text begin This appropriation is for the family homeless
prevention and assistance programs under
Minnesota Statutes, section 462A.204.
new text end

new text begin Subd. 10. new text end new text begin Home Ownership Assistance Fund new text end

new text begin 885,000 new text end

new text begin 885,000 new text end

new text begin This appropriation is for the home ownership
assistance program under Minnesota Statutes,
section 462A.21, subdivision 8. The agency
shall continue to strengthen its efforts to
address the disparity gap in the
homeownership rate between white
households and indigenous American Indians
and communities of color. To better
understand and address the disparity gap, the
agency is required to collect, on a voluntary
basis, demographic information regarding
race, color, national origin, and sex of
applicants for agency programs intended to
benefit homeowners and homebuyers.
new text end

new text begin Subd. 11. new text end new text begin Affordable Rental Investment Fund new text end

new text begin 4,218,000 new text end

new text begin 4,218,000 new text end

new text begin (a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b, to finance the acquisition,
rehabilitation, and debt restructuring of
federally assisted rental property and for
making equity take-out loans under Minnesota
Statutes, section 462A.05, subdivision 39.
new text end

new text begin (b) The owner of federally assisted rental
property must agree to participate in the
applicable federally assisted housing program
and to extend any existing low-income
affordability restrictions on the housing for
the maximum term permitted. The owner must
also enter into an agreement that gives local
units of government, housing and
redevelopment authorities, and nonprofit
housing organizations the right of first refusal
if the rental property is offered for sale.
Priority must be given among comparable
federally assisted rental properties to
properties with the longest remaining term
under an agreement for federal assistance.
Priority must also be given among comparable
rental housing developments to developments
that are or will be owned by local government
units, a housing and redevelopment authority,
or a nonprofit housing organization.
new text end

new text begin (c) The appropriation also may be used to
finance the acquisition, rehabilitation, and debt
restructuring of existing supportive housing
properties and naturally occurring affordable
housing as determined by the commissioner.
For purposes of this paragraph, "supportive
housing" means affordable rental housing with
links to services necessary for individuals,
youth, and families with children to maintain
housing stability.
new text end

new text begin Subd. 12. new text end new text begin Owner-Occupied Housing Rehabilitation new text end

new text begin 2,772,000 new text end

new text begin 2,772,000 new text end

new text begin (a) This appropriation is for the rehabilitation
of owner-occupied housing under Minnesota
Statutes, section 462A.05, subdivisions 14 and
14a.
new text end

new text begin (b) Notwithstanding any law to the contrary,
grants or loans under this subdivision may be
made without rent or income restrictions of
owners or tenants. To the extent practicable,
grants or loans must be made available
statewide.
new text end

new text begin Subd. 13. new text end new text begin Rental Housing Rehabilitation new text end

new text begin 3,743,000 new text end

new text begin 3,743,000 new text end

new text begin (a) This appropriation is for the rehabilitation
of eligible rental housing under Minnesota
Statutes, section 462A.05, subdivision 14. In
administering a rehabilitation program for
rental housing, the agency may apply the
processes and priorities adopted for
administration of the economic development
and housing challenge program under
Minnesota Statutes, section 462A.33, and may
provide grants or forgivable loans if approved
by the agency.
new text end

new text begin (b) Notwithstanding any law to the contrary,
grants or loans under this subdivision may be
made without rent or income restrictions of
owners or tenants. To the extent practicable,
grants or loans must be made available
statewide.
new text end

new text begin Subd. 14. new text end new text begin Homeownership Education, Counseling, and Training new text end

new text begin 857,000 new text end

new text begin 857,000 new text end

new text begin This appropriation is for the homeownership
education, counseling, and training program
under Minnesota Statutes, section 462A.209.
new text end

new text begin Subd. 15. new text end new text begin Capacity-Building Grants new text end

new text begin 645,000 new text end

new text begin 645,000 new text end

new text begin This appropriation is for nonprofit
capacity-building grants under Minnesota
Statutes, section 462A.21, subdivision 3b. Of
this amount, $125,000 each year is for support
of the Homeless Management Information
System (HMIS).
new text end

new text begin Subd. 16. new text end new text begin Build Wealth MN new text end

new text begin 500,000 new text end

new text begin 500,000 new text end

new text begin This appropriation is for a grant to Build
Wealth Minnesota to provide a family
stabilization plan program including program
outreach, financial literacy education, and
budget and debt counseling.
new text end

new text begin Subd. 17. new text end new text begin Availability and Transfer of Funds new text end

new text begin Money appropriated in the first year in this
article is available the second year. The
commissioner may shift or transfer money in
the second year in subdivisions 2, 3, 4, 5, 12,
and 13 to address high-priority housing needs.
new text end

ARTICLE 6

HOUSING POLICY

Section 1.

Minnesota Statutes 2018, section 299D.085, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Trailer use. new text end

new text begin A vehicle or a combination of vehicles may tow a trailer during
the movement of an overdimensional load if:
new text end

new text begin (1) the party involved is a building mover licensed by the commissioner of transportation
under section 221.81;
new text end

new text begin (2) the building being moved is not a temporary structure;
new text end

new text begin (3) the overdimensional load is a manufactured home, as defined under section 327.31;
or
new text end

new text begin (4) the overdimensional load is a modular home, as defined under section 297A.668,
subdivision 8, paragraph (b).
new text end

Sec. 2.

Minnesota Statutes 2018, section 326B.815, subdivision 1, is amended to read:

Subdivision 1.

Fees.

(a) For the purposes of calculating fees under section 326B.092,
an initial or renewed residential contractor, residential remodeler, or residential roofer license
is a business license. Notwithstanding section 326B.092, the licensing fee for manufactured
home installers under section 327B.041 is deleted text begin $300 deleted text end new text begin $180 new text end for a three-year period.

(b) All initial and renewal licenses, except for manufactured home installer licenses,
shall be effective for two years and shall expire on March 31 of the year after the year in
which the application is made.

(c) The commissioner shall in a manner determined by the commissioner, without the
need for any rulemaking under chapter 14, phase in the renewal of residential contractor,
residential remodeler, and residential roofer licenses from one year to two years. By June
30, 2011, all renewed residential contractor, residential remodeler, and residential roofer
licenses shall be two-year licenses.

Sec. 3.

Minnesota Statutes 2018, section 327.31, is amended by adding a subdivision to
read:

new text begin Subd. 23. new text end

new text begin Modular home. new text end

new text begin For the purposes of this section, "modular home" means a
single-family dwelling constructed in accordance with applicable standards adopted in
Minnesota Rules, chapter 1360 or 1361, and attached to a foundation designed to the State
Building Code.
new text end

Sec. 4.

new text begin [327.335] PLACEMENT OF MODULAR HOMES.
new text end

new text begin A modular home may be placed in a manufactured home park as defined in section
327.14, subdivision 3. A modular home placed in a manufactured home park is a
manufactured home for purposes of chapters 327, 327C, and 504B, and all rights, obligations,
and duties under those chapters apply. A modular home may not be placed in a manufactured
home park without prior written approval of the park owner. Nothing in this section shall
be construed to inhibit the application of zoning, subdivision, architectural, or esthetic
requirements pursuant to chapters 394 and 462 that otherwise apply to manufactured homes
and manufactured home parks. A modular home placed in a manufactured home park under
this section shall be assessed and taxed as a manufactured home.
new text end

Sec. 5.

Minnesota Statutes 2018, section 327B.041, is amended to read:

327B.041 MANUFACTURED HOME INSTALLERS.

(a) Manufactured home installers are subject to all of the fees in section 326B.092 and
the requirements of sections 326B.802 to 326B.885, except for the following:

(1) manufactured home installers are not subject to the continuing education requirements
of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education
requirements established in rules adopted under section 327B.10;

(2) the examination requirement of section 326B.83, subdivision 3, for manufactured
home installers shall be satisfied by successful completion of a written examination
administered and developed specifically for the examination of manufactured home installers.
The examination must be administered and developed by the commissioner. The
commissioner and the state building official shall seek advice on the grading, monitoring,
and updating of examinations from the Minnesota Manufactured Housing Association;

(3) a local government unit may not place a surcharge on a license fee, and may not
charge a separate fee to installers;

(4) a dealer or distributor who does not install or repair manufactured homes is exempt
from licensure under sections 326B.802 to 326B.885;

(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply;
and

(6) manufactured home installers are not subject to the contractor recovery fund in
section 326B.89.

(b) The commissioner may waive all or part of the requirements for licensure as a
manufactured home installer for any individual who holds an unexpired license or certificate
issued by any other state or other United States jurisdiction if the licensing requirements of
that jurisdiction meet or exceed the corresponding licensing requirements of the department
and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. deleted text begin For the
purposes of calculating fees under section 326B.092, licensure as a manufactured home
installer is a business license.
deleted text end

Sec. 6.

Minnesota Statutes 2018, section 327C.01, is amended by adding a subdivision to
read:

new text begin Subd. 8a. new text end

new text begin Representative acting on behalf of residents. new text end

new text begin "Representative acting on
behalf of residents" means a representative who is authorized to represent residents in the
purchase of property for the purposes of this chapter, and has gained that authorization by
obtaining the signature of support from at least one resident who is a homeowner-signatory
to the home's lot lease agreement as defined by section 327C.01, subdivision 9, from at
least 51 percent of the occupied homes in a manufactured home park. The signature of a
resident who is a signatory to the home's lot lease agreement asserting that they are a resident
of that manufactured home park shall be presumptive evidence of the claim that the
representative is authorized to act on behalf of the resident and shall be exclusive to only
one representative acting on behalf of residents.
new text end

Sec. 7.

Minnesota Statutes 2018, section 327C.095, subdivision 1, is amended to read:

Subdivision 1.

Conversion of use; minimum notice.

new text begin (a) new text end At least deleted text begin nine deleted text end new text begin 12 new text end months before
the conversion of all or a portion of a manufactured home park to another use, or before
closure of a manufactured home park or cessation of use of the land as a manufactured home
park, the park owner must prepare a closure statement and provide a copy to the
commissioners of health and the housing finance agency, the local planning agency, and a
resident of each manufactured home where the residential use is being converted. The
closure statement must include the following language in a font no smaller than 14 point:
"YOU MAY BE ENTITLED TO COMPENSATION FROM THE MINNESOTA
MANUFACTURED HOME RELOCATION TRUST FUND ADMINISTERED BY THE
MINNESOTA HOUSING FINANCE AGENCY." A resident may not be required to vacate
until deleted text begin 60 deleted text end new text begin 90 new text end days after the conclusion of the public hearing required under subdivision 4. If
a lot is available in another section of the park that will continue to be operated as a park,
the park owner must allow the resident to relocate the home to that lot unless the home,
because of its size or local ordinance, is not compatible with that lot.

new text begin (b) Closure statements issued more than 24 months prior to the park closure must contain
a closure date. If the closure does not take place within 24 months and the original statement
does not contain a closure date, the statement must be reissued to the commissioners of
health and the Housing Finance Agency, the local planning agency, and a resident of each
manufactured home where the residential use is being converted.
new text end

Sec. 8.

Minnesota Statutes 2018, section 327C.095, subdivision 2, is amended to read:

Subd. 2.

Notice of hearing; proposed change in land use.

If the planned conversion
or cessation of operation requires a variance or zoning change, the deleted text begin municipality deleted text end new text begin local
government authority new text end must mail a notice at least ten days before the hearing to a resident
of each manufactured home in the park stating the time, place, and purpose of the public
hearing. The park owner shall provide the deleted text begin municipality deleted text end new text begin local government authority new text end with a
list of the names and addresses of at least one resident of each manufactured home in the
park at the time application is made for a variance or zoning change.

Sec. 9.

Minnesota Statutes 2018, section 327C.095, subdivision 3, is amended to read:

Subd. 3.

Closure statement.

Upon receipt of the closure statement from the park owner,
the local planning agency shall submit the closure statement to the governing body of the
deleted text begin municipality deleted text end new text begin local government authority new text end and request the governing body to schedule a public
hearing. The deleted text begin municipality deleted text end new text begin local government authority new text end must mail a notice at least ten days
before the hearing to a resident of each manufactured home in the park stating the time,
place, and purpose of the public hearing. The park owner shall provide the deleted text begin municipality deleted text end new text begin
local government authority new text end with a list of the names and addresses of at least one resident
of each manufactured home in the park at the time the closure statement is submitted to the
local planning agency.

Sec. 10.

Minnesota Statutes 2018, section 327C.095, subdivision 4, is amended to read:

Subd. 4.

Public hearing; relocation compensation; neutral third party.

new text begin (a) Within
90 days after receiving notice of a closure statement, new text end the governing body of the affected
deleted text begin municipality deleted text end new text begin local government authority new text end shall hold a public hearing to review the closure
statement and any impact that the park closing may have on the displaced residents and the
park owner. At the time of, and in the notice for, the public hearing, displaced residents
must be informed that they may be eligible for payments from the Minnesota manufactured
home relocation trust fund under section 462A.35 as compensation for reasonable relocation
costs under subdivision 13, paragraphs (a) and (e).

new text begin (b) new text end The governing body of the deleted text begin municipality deleted text end new text begin local government authority new text end may also require
that other parties, including the deleted text begin municipality deleted text end new text begin local government authority new text end , but excluding the
park owner or its purchaser, involved in the park closing provide additional compensation
to residents to mitigate the adverse financial impact of the park closing upon the residents.

new text begin (c) new text end At the public hearing, the deleted text begin municipality deleted text end new text begin local government authority new text end shall appoint a
new text begin qualified new text end neutral third party, to be agreed upon by both the manufactured home park owner
and manufactured home owners, whose hourly cost must be reasonable and paid from the
Minnesota manufactured home relocation trust fund. The neutral third party shall act as a
paymaster and arbitrator, with decision-making authority to resolve any questions or disputes
regarding any contributions or disbursements to and from the Minnesota manufactured
home relocation trust fund by either the manufactured home park owner or the manufactured
home owners. If the parties cannot agree on a neutral third party, the deleted text begin municipality will make
a determination deleted text end new text begin local government authority shall determine who shall act as the neutral third
party new text end .

new text begin (d) The qualified neutral third party shall be familiar with manufactured housing and
the requirements of this section. The neutral third party shall keep an overall receipts and
cost summary together with a detailed accounting, for each manufactured lot, of the payments
received by the manufactured home park owner, and expenses approved and payments
disbursed to the manufactured home owners, pursuant to subdivisions 12 and 13, as well
as a record of all services and hours it provided and at what hourly rate it charged to the
Minnesota manufactured home trust fund. This detailed accounting shall be provided to the
manufactured home park owner, the municipality, and the Minnesota Housing Finance
Agency to be included in its yearly October 15 report as required in subdivision 13, paragraph
(h), not later than 30 days after the expiration of the 12-month notice provided in the closure
statement.
new text end

new text begin (e) At the public hearing, the governing body of the local government authority shall
determine if any ordinance was in effect on May 26, 2007, that would provide compensation
to displaced residents and provide this information to the third party neutral to determine
the applicable amount of compensation under subdivision 13, paragraph (f).
new text end

Sec. 11.

Minnesota Statutes 2018, section 327C.095, subdivision 6, is amended to read:

Subd. 6.

Intent to convert use of park at time of purchase.

new text begin (a) new text end Before the execution
of an agreement to purchase a manufactured home park, the purchaser must notify the park
owner, in writing, if the purchaser intends to close the manufactured home park or convert
it to another use within one year of the execution of the agreement. new text begin If so, new text end the park owner
shall provide a resident of each manufactured home with a 45-day written notice of the
purchaser's intent to close the park or convert it to another use new text begin and may not enter into a
purchase agreement for the sale of the park other than with a representative acting on behalf
of residents, until the 45 days have expired new text end . The notice must state that the park owner will new text begin
promptly new text end provide information on the cash price and the terms and conditions of the
purchaser's offer to residents requesting the information. The notice must be sent by first
class mail to a resident of each manufactured home in the park new text begin and made available in
alternative formats or translations if requested by a resident and the request is a reasonable
accommodation due to a disability of an adult resident or because there is not an adult
resident who is able to speak the language the notice is provided in new text end . The notice period begins
on the postmark date affixed to the notice and ends 45 days after it begins. During the notice
period required in this subdivision, deleted text begin the owners of at least 51 percent of the manufactured
homes in the park or a nonprofit organization which has the written permission of the owners
of at least 51 percent of the manufactured homes in the park to represent them in the
acquisition of the park deleted text end new text begin a representative acting on behalf of residents new text end shall have the right to new text begin
make an offer to new text end meet the cash price and deleted text begin execute an agreement to purchase the park for the
purposes of keeping the park as a manufactured housing community deleted text end new text begin to agree to material
terms and conditions set forth in the purchaser's offer new text end new text begin and to execute an agreement to purchase
the park for the purposes of keeping the park as a manufactured housing community new text end . The
park owner must deleted text begin accept the offer if it meets deleted text end new text begin in good faith negotiate a purchase agreement
meeting new text end the cash price and the same terms and conditions set forth in the purchaser's offer
except that the seller is not obligated to provide owner financing. For purposes of this
section, cash price means the cash price offer or equivalent cash offer as defined in section
500.245, subdivision 1, paragraph (d). new text begin The purchase agreement must permit the representative
a commercially reasonable due diligence period with access by the representative to all
information reasonably necessary to make an informed decision regarding the purchase.
The representative may be required to enter into a confidentiality agreement regarding the
information.
new text end

new text begin (b) A representative acting on behalf of residents must provide ten percent of the offer
price as earnest money upon gaining the required number of signatures to represent the
residents in the purchase of a manufactured home park. The earnest money is refundable
after six months; however, the earnest money may become nonrefundable if the representative
acting on behalf of residents is unable to complete the purchase, and the original purchaser
withdraws the offer during the 45-day period in paragraph (a), and the manufactured home
park is sold to another purchaser for a lower price within six months of the notice to residents
in paragraph (a), then the park owner will be compensated from the earnest money for the
difference between the offer made by the original purchaser and the actual lower purchase
price.
new text end

new text begin (c) In the event of a sale to a representative acting on behalf of residents, the
representative must certify to the commissioner of commerce that the property will be
preserved as a manufactured home park for ten years from the date of the sale.
new text end

Sec. 12.

Minnesota Statutes 2018, section 327C.095, subdivision 7, is amended to read:

Subd. 7.

deleted text begin Intent to convert deleted text end new text begin Conversion of new text end use of park after purchase.

If the deleted text begin purchaser deleted text end
new text begin residents new text end of a manufactured home park deleted text begin decides to convert the park to another use within
one year after the purchase of the park, the purchaser must offer the park for purchase by
the residents of the park deleted text end new text begin have not been provided the written notice of intent to close the park
required by subdivision 6, the purchaser may not provide residents with the notice required
by subdivision 1 until 12 months after the date of purchase new text end . For purposes of this subdivision,
the date of purchase is the date of the transfer of the title to the purchaser. deleted text begin The purchaser
must provide a resident of each manufactured home with a written notice of the intent to
close the park and all of the owners of at least 51 percent of the manufactured homes in the
park or a nonprofit organization which has the written permission of the owners of at least
51 percent of the manufactured homes in the park to represent them in the acquisition of
the park shall have 45 days to execute an agreement for the purchase of the park at a cash
price equal to the original purchase price paid by the purchaser plus any documented expenses
relating to the acquisition and improvement of the park property, together with any increase
in value due to appreciation of the park. The purchaser must execute the purchase agreement
at the price specified in this subdivision and pay the cash price within 90 days of the date
of the purchase agreement. The notice must be sent by first class mail to a resident of each
manufactured home in the park. The notice period begins on the postmark date affixed to
the notice and ends 45 days after it begins.
deleted text end

Sec. 13.

Minnesota Statutes 2018, section 327C.095, subdivision 9, is amended to read:

Subd. 9.

Effect of noncompliance.

If a manufactured home park is finally sold or
converted to another use in violation of subdivision 6 or 7, the residents deleted text begin do not have any
continuing right to purchase the park as a result of that sale or conversion. A violation of
subdivision 6 or 7 is subject to deleted text end new text begin have a right to any remedy provided in new text end section 8.31 deleted text begin , except deleted text end
deleted text begin that relief shall be limited so that questions of marketability of title shall not be affected deleted text end .

Sec. 14.

Minnesota Statutes 2018, section 327C.095, subdivision 11, is amended to read:

Subd. 11.

Affidavit of compliance.

After a park is sold, a deleted text begin park owner or other person
with personal knowledge deleted text end new text begin bona fide purchaser acting in good faith new text end may record an affidavit
with the county recorder or registrar of titles in the county in which the park is located
certifying compliance with subdivision 6 deleted text begin or 7 deleted text end or that deleted text begin subdivisions deleted text end new text begin subdivision new text end 6 deleted text begin and 7 are deleted text end new text begin
is new text end not applicable. The affidavit may be used as deleted text begin proof of the facts stated in the affidavit. A
person acquiring an interest in a park or a title insurer or attorney who prepares, furnishes,
or examines evidence of title may rely on the truth and accuracy of statements made in the
affidavit and is not required to inquire further as to the park owner's compliance with
subdivisions 6 and 7. When an affidavit is recorded, the right to purchase provided under
subdivisions 6 and 7 terminate, and if registered property, the registrar of titles shall delete
the memorials of the notice and affidavit from future certificates of title deleted text end new text begin presumptive evidence
of compliance new text end .

Sec. 15.

Minnesota Statutes 2018, section 327C.095, subdivision 12, is amended to read:

Subd. 12.

Payment to the Minnesota manufactured home relocation trust fund.

(a)
If a manufactured home owner is required to move due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a park, or cessation of use of
the land as a manufactured home park, the manufactured park owner shall, upon the change
in use, pay to the commissioner of management and budget for deposit in the Minnesota
manufactured home relocation trust fund under section 462A.35, the lesser amount of the
actual costs of moving or purchasing the manufactured home approved by the neutral third
party and paid by the Minnesota Housing Finance Agency under subdivision 13, paragraph
(a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each
multisection manufactured home, for which a manufactured home owner has made
application for payment of relocation costs under subdivision 13, paragraph (c). The
manufactured home park owner shall make payments required under this section to the
Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice
from the neutral third party.

(b) A manufactured home park owner is not required to make the payment prescribed
under paragraph (a), nor is a manufactured home owner entitled to compensation under
subdivision 13, paragraph (a) or (e), if:

(1) the manufactured home park owner relocates the manufactured home owner to
another space in the manufactured home park or to another manufactured home park at the
park owner's expense;

(2) the manufactured home owner is vacating the premises and has informed the
manufactured home park owner or manager of this prior to the mailing date of the closure
statement under subdivision 1;

(3) a manufactured home owner has abandoned the manufactured home, or the
manufactured home owner is not current on the monthly lot rental, personal property taxes;

(4) the manufactured home owner has a pending eviction action for nonpayment of lot
rental amount under section 327C.09, which was filed against the manufactured home owner
prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery
has been ordered by the district court;

(5) the conversion of all or a portion of a manufactured home park to another use, the
closure of a park, or cessation of use of the land as a manufactured home park is the result
of a taking or exercise of the power of eminent domain by a governmental entity or public
utility; or

(6) the owner of the manufactured home is not a resident of the manufactured home
park, as defined in section 327C.01, subdivision 9 deleted text begin , or deleted text end new text begin ; new text end the owner of the manufactured home
is a resident, but came to reside in the manufactured home park after the mailing date of
the closure statement under subdivision 1 new text begin ; or the owner of the manufactured home has not
paid the $15 assessment when due under paragraph (c) new text end .

(c) If the unencumbered fund balance in the manufactured home relocation trust fund
is less than deleted text begin $1,000,000 deleted text end new text begin $2,000,000 new text end as of June 30 of each year, the commissioner of
management and budget shall assess each manufactured home park owner by mail the total
amount of $15 for each licensed lot in their park, payable on or before deleted text begin September deleted text end new text begin December new text end
15 of that year. deleted text begin The commissioner of management deleted text end new text begin Failure to notify new text end and deleted text begin budget shall deposit
any payments in the Minnesota deleted text end new text begin timely assess the new text end manufactured home deleted text begin relocation trust fund.
On or before July 15 of deleted text end new text begin park owner by July 31 of any year shall waive the assessment and
payment obligations of the manufactured home park owner for that year. Together with said
assessment notice, new text end each year deleted text begin , deleted text end the commissioner of management and budget shall prepare
and distribute to park owners a letter explaining whether funds are being collected for that
year, information about the collection, an invoice for all licensed lots, new text begin a notice for distribution
to the residents, new text end and a sample form for the park owners to collect information on which park
residents new text begin and lots new text end have been accounted for. new text begin In a font no smaller than 14-point, the notice
provided by management and budget for distribution to residents by the park owner will
include the payment deadline of November 30 and the following language: "THIS IS NOT
AN OPTIONAL FEE. IF YOU OWN A MANUFACTURED HOME ON A LOT YOU
RENT IN A MANUFACTURED HOME PARK, AND YOU RESIDE IN THAT HOME,
YOU MUST PAY WHEN PROVIDED NOTICE." new text end If assessed under this paragraph, the
park owner may recoup the cost of the $15 assessment as a lump sum or as a monthly fee
of no more than $1.25 collected from park residents together with monthly lot rent as
provided in section 327C.03, subdivision 6. deleted text begin Park owners deleted text end new text begin If, by September 15, a park owner
provides the notice to residents for the $15 lump sum, a park owner new text end may adjust payment
for lots in their park that are vacant or otherwise not eligible for contribution to the trust
fund under section 327C.095, subdivision 12, paragraph (b), new text begin and for park residents who
have not paid the $15 assessment when due to the park owner by November 30, new text end and deduct
from the assessment accordingly. new text begin The commissioner of management and budget shall deposit
any payments in the Minnesota manufactured home relocation trust fund and provide to the
Minnesota Housing Finance Agency by December 31, a record for each manufactured home
park of the amount received for that park and the number of deductions made for each of
the following reasons: vacant lots, ineligible lots, and uncollected fees.
new text end

(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action
in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
attorney fees, court costs, and disbursements.

Sec. 16.

Minnesota Statutes 2018, section 327C.095, subdivision 13, is amended to read:

Subd. 13.

Change in use, relocation expenses; payments by park owner.

(a) If a
manufactured home owner is required to relocate due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a manufactured home park, or
cessation of use of the land as a manufactured home park under subdivision 1, and the
manufactured home owner complies with the requirements of this section, the manufactured
home owner is entitled to payment from the Minnesota manufactured home relocation trust
fund equal to the manufactured home owner's actual relocation costs for relocating the
manufactured home to a new location within a deleted text begin 25 deleted text end new text begin 50 new text end -mile radius of the park that is being
closed, up to a maximum of $7,000 for a single-section and $12,500 for a multisection
manufactured home. The actual relocation costs must include the reasonable cost of taking
down, moving, and setting up the manufactured home, including equipment rental, utility
connection and disconnection charges, minor repairs, modifications necessary for
transportation of the home, necessary moving permits and insurance, moving costs for any
appurtenances, which meet applicable local, state, and federal building and construction
codes.

(b) A manufactured home owner is not entitled to compensation under paragraph (a) if
the manufactured home park owner is not required to make a payment to the Minnesota
manufactured home relocation trust fund under subdivision 12, paragraph (b).

(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota
manufactured home relocation trust fund, the manufactured home owner shall submit to the
neutral third party and the Minnesota Housing Finance Agency, with a copy to the park
owner, an application for payment, which includes:

(1) a copy of the closure statement under subdivision 1;

(2) a copy of the contract with a moving or towing contractor, which includes the
relocation costs for relocating the manufactured home;

(3) a statement with supporting materials of any additional relocation costs as outlined
in subdivision 1;

(4) a statement certifying that none of the exceptions to receipt of compensation under
subdivision 12, paragraph (b), apply to the manufactured home owner;

(5) a statement from the manufactured park owner that the lot rental is current and that
the annual $15 deleted text begin payments deleted text end new text begin payment new text end to the Minnesota manufactured home relocation trust
fund deleted text begin have deleted text end new text begin has new text end been paid when due; and

(6) a statement from the county where the manufactured home is located certifying that
personal property taxes for the manufactured home are paid through the end of that year.

(d) new text begin The neutral third party shall promptly process all payments for completed applications
within 14 days. new text end If the neutral third party has acted reasonably and does not approve or deny
payment within 45 days after receipt of the information set forth in paragraph (c), the
payment is deemed approved. Upon approval and request by the neutral third party, the
Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 percent
of the contract price payable to the mover and towing contractor for relocating the
manufactured home in the amount of the actual relocation cost, plus a check to the home
owner for additional certified costs associated with third-party vendors, that were necessary
in relocating the manufactured home. The moving or towing contractor shall receive 50
percent upon execution of the contract and 50 percent upon completion of the relocation
and approval by the manufactured home owner. The moving or towing contractor may not
apply the funds to any other purpose other than relocation of the manufactured home as
provided in the contract. A copy of the approval must be forwarded by the neutral third
party to the park owner with an invoice for payment of the amount specified in subdivision
12, paragraph (a).

(e) In lieu of collecting a relocation payment from the Minnesota manufactured home
relocation trust fund under paragraph (a), the manufactured home owner may collect an
amount from the fund after reasonable efforts to relocate the manufactured home have failed
due to the age or condition of the manufactured home, or because there are no manufactured
home parks willing or able to accept the manufactured home within a 25-mile radius. A
manufactured home owner may tender title of the manufactured home in the manufactured
home park to the manufactured home park owner, and collect an amount to be determined
by an independent appraisal. The appraiser must be agreed to by both the manufactured
home park owner and the manufactured home owner. If the appraised market value cannot
be determined, the tax market value, averaged over a period of five years, can be used as a
substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a
single-section and $14,500 for a multisection manufactured home. The minimum amount
that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a
multisection manufactured home. The manufactured home owner shall deliver to the
manufactured home park owner the current certificate of title to the manufactured home
duly endorsed by the owner of record, and valid releases of all liens shown on the certificate
of title, and a statement from the county where the manufactured home is located evidencing
that the personal property taxes have been paid. The manufactured home owner's application
for funds under this paragraph must include a document certifying that the manufactured
home cannot be relocated, that the lot rental is current, that the annual $15 payments to the
Minnesota manufactured home relocation trust fund have been paid when due, that the
manufactured home owner has chosen to tender title under this section, and that the park
owner agrees to make a payment to the commissioner of management and budget in the
amount established in subdivision 12, paragraph (a), less any documented costs submitted
to the neutral third party, required for demolition and removal of the home, and any debris
or refuse left on the lot, not to exceed deleted text begin $1,000 deleted text end new text begin $1,500 new text end . The manufactured home owner must
also provide a copy of the certificate of title endorsed by the owner of record, and certify
to the neutral third party, with a copy to the park owner, that none of the exceptions to
receipt of compensation under subdivision 12, paragraph (b), clauses (1) to (6), apply to the
manufactured home owner, and that the home owner will vacate the home within 60 days
after receipt of payment or the date of park closure, whichever is earlier, provided that the
monthly lot rent is kept current.

(f) deleted text begin The Minnesota Housing Finance Agency must make a determination of the amount
of payment a manufactured home owner would have been entitled to under a local ordinance
in effect on May 26, 2007. deleted text end Notwithstanding paragraph (a), the manufactured home owner's
compensation for relocation costs from the fund under section 462A.35, is the greater of
the amount provided under this subdivision, or the amount under the local ordinance in
effect on May 26, 2007, that is applicable to the manufactured home owner. Nothing in this
paragraph is intended to increase the liability of the park owner.

(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be
liable to any person for recovery if the funds in the Minnesota manufactured home relocation
trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance
Agency shall keep a record of the time and date of its approval of payment to a claimant.

new text begin (h)(1) By October 15, 2019, the Minnesota Housing Finance Agency shall post on its
website and report to the chairs of the senate Finance Committee and house of representatives
Ways and Means Committee on the Minnesota manufactured home relocation trust fund,
including the account balance, payments to claimants, the amount of any advances to the
fund, the amount of any insufficiencies encountered during the previous calendar year, and
any itemized administrative charges or expenses deducted from the trust fund balance. If
sufficient funds become available, the Minnesota Housing Finance Agency shall pay the
manufactured home owner whose unpaid claim is the earliest by time and date of approval.
new text end

deleted text begin (h) deleted text end new text begin (2) Beginning in 2019, new text end the new text begin Minnesota Housing Finance new text end Agency shall new text begin post on its
website and new text end report to the chairs of the senate Finance Committee and house of representatives
Ways and Means Committee by deleted text begin January deleted text end new text begin October new text end 15 of each year on the Minnesota
manufactured home relocation trust fund, including the new text begin aggregate new text end account balance, new text begin the
aggregate assessment payments received, summary information regarding each closed park
including the total new text end payments to claimants new text begin and payments received from each closed park new text end ,
the amount of any advances to the fund, the amount of any insufficiencies encountered
during the previous deleted text begin calendar deleted text end new text begin fiscal new text end year, new text begin reports of neutral third parties provided pursuant
to subdivision 4, new text end and any new text begin itemized new text end administrative charges or expenses deducted from the
trust fund balance new text begin , all of which should be reconciled to the previous year's trust fund balance new text end .
If sufficient funds become available, the Minnesota Housing Finance Agency shall pay the
manufactured home owner whose unpaid claim is the earliest by time and date of approval.

Sec. 17.

Minnesota Statutes 2018, section 327C.095, is amended by adding a subdivision
to read:

new text begin Subd. 16. new text end

new text begin Reporting of licensed manufactured home parks. new text end

new text begin The Department of Health
or, if applicable, local units of government that have entered into a delegation of authority
agreement with the Department of Health as provided in section 145A.07 shall provide, by
March 31 of each year, a list of names and addresses of the manufactured home parks
licensed in the previous year, and for each manufactured home park, the current licensed
owner, the owner's address, the number of licensed manufactured home lots, and other data
as they may request for the Department of Management and Budget to invoice each licensed
manufactured home park in Minnesota.
new text end

Sec. 18.

Minnesota Statutes 2018, section 428A.11, subdivision 4, is amended to read:

Subd. 4.

Housing improvements.

"Housing improvements" has the meaning given in
the city's enabling ordinance. Housing improvements may include improvements to common
elements of a condominium or other common interest community new text begin or to a manufactured
home park new text end .

Sec. 19.

Minnesota Statutes 2018, section 428A.11, subdivision 6, is amended to read:

Subd. 6.

Housing unit.

"Housing unit" means real property and improvements thereon
consisting of a one-dwelling unit, or an apartment or unit as described in chapter 515, 515A,
or 515B, respectively, new text begin or a manufactured home in a manufactured home park new text end that is occupied
by a person or family for use as a residence.

Sec. 20.

Minnesota Statutes 2018, section 462A.2035, subdivision 1a, is amended to read:

Subd. 1a.

Individual assistance grants.

Eligible recipients may use individual assistance
grants and loans under this program to:

(1) provide current residents of manufactured home parks with buy-out assistance not
to exceed $4,000 per home with preference given to older manufactured homes; and

(2) provide down-payment assistance for the purchase of new and preowned manufactured
homes that comply with the current version of the deleted text begin State Building deleted text end new text begin United States Department
of Housing and Urban Development's Manufactured Housing new text end Code in effect at the time of
the sale, not to exceed $10,000 per home.

Sec. 21.

Minnesota Statutes 2018, section 462A.2035, subdivision 1b, is amended to read:

Subd. 1b.

Manufactured home park infrastructure grants.

Eligible recipients may
use manufactured home park infrastructure grants under this program for:

(1) new text begin acquisition of and new text end improvements in manufactured home parks; and

(2) infrastructure, including storm shelters and community facilities.

Sec. 22.

Minnesota Statutes 2018, section 462A.209, subdivision 8, is amended to read:

Subd. 8.

Report.

new text begin (a) new text end By January 10 of every year, each nonprofit organization new text begin or political
subdivision new text end that delivers services under this section new text begin and capacity building under section
462A.21, subdivision 3b, if the grant recipient has subgrantees, new text end must submit a report to the
agency deleted text begin that summarizes the number of people served and the sources and amounts of nonstate
money used to fund the services deleted text end . new text begin The report must include, at a minimum, the following
information:
new text end

new text begin (1) details of program costs;
new text end

new text begin (2) the number of staff, both within the organization and any outside organization;
new text end

new text begin (3) the number of program participants;
new text end

new text begin (4) the demographic information including, but not limited to, race, age, gender, and
income of program participants, if available;
new text end

new text begin (5) a list of any and all subgrantees receiving funds from the program, as well as the
amount of funding received;
new text end

new text begin (6) information about other sources of program funding including other public or private
funding or in-kind donations;
new text end

new text begin (7) evidence that the organization administering a program or a subgrantee of a program
is in good standing with the Minnesota Secretary of State and has provided an affidavit
stating the organization and subgrantee, if any, has met all applicable requirements under
chapter 289A;
new text end

new text begin (8) a short description of what each program does; and
new text end

new text begin (9) to the extent practicable, quantifiable measures of program success.
new text end

new text begin (b) new text end The agency shall annually submit a report new text begin containing the information received from
nonprofit organizations and political subdivisions under paragraph (a) new text end to the deleted text begin legislature deleted text end new text begin
members of the legislative housing policy and finance committees and divisions new text end by February
15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 23.

Minnesota Statutes 2018, section 462A.22, subdivision 9, is amended to read:

Subd. 9.

Biennial report.

The agency shall also submit a biennial report of its activities
and receipts, and a plan for the next biennium, to the governor and the legislature on or
before February 15 in each odd-numbered year. The report shall include new text begin : (1) new text end the distribution
of money under each agency program by county, except for counties containing a city of
the first class, where the distribution shall be reported by municipality new text begin ; and (2) the cost per
unit of housing and the cost per square foot of housing financed under each agency program new text end .

In addition, the report shall include the cost to the agency of the issuance of its bonds
for each issue in the biennium, along with comparable information for other state housing
finance agencies.

Sec. 24.

Minnesota Statutes 2018, section 462A.222, subdivision 3, is amended to read:

Subd. 3.

Allocation procedure.

(a) Projects will be awarded tax credits in two
competitive rounds on an annual basis. The date for applications for each round must be
determined by the agency. No allocating agency may award tax credits prior to the application
dates established by the agency.

(b) Each allocating agency must meet the requirements of section 42(m) of the Internal
Revenue Code of 1986, as amended through December 31, 1989, for the allocation of tax
credits and the selection of projects.

(c) For projects that are eligible for an allocation of credits pursuant to section 42(h)(4)
of the Internal Revenue Code of 1986, as amended, tax credits may only be allocated if the
project satisfies the requirements of the allocating agency's qualified allocation plan. For
projects that are eligible for an allocation of credits pursuant to section 42(h)(4) of the
Internal Revenue Code of 1986, as amended, for which the agency is the issuer of the bonds
for the project, or the issuer of the bonds for the project is located outside the jurisdiction
of a city or county that has received reserved tax credits, the applicable allocation plan is
the agency's qualified allocation plan.

(d) deleted text begin (1) deleted text end To maximize the resources available for and increase the supply of affordable
housing in Minnesota by leveraging the benefits to Minnesota from the use of tax-exempt
bonds to finance multifamily housing and to allow local units of government more flexibility
to address specific affordable housing needs in their communities, the agency shall make
residential rental housing projects financed with an allocation of tax-exempt bonds under
chapter 474A the highest strategic priority for tax credits under the agency's qualified
allocation plan under section 42(m)(1)(D) of the Internal Revenue Code of 1986, as amended.

deleted text begin (2) For projects eligible for an allocation of tax credits under section 42(h)(4) of the
Internal Revenue Code of 1986, as amended, the agency's qualified allocation plan and
other related agency guidance and requirements:
deleted text end

deleted text begin (i) shall not include any selection criteria other than (A) the criteria of section 42(m)(1)(C)
of the Internal Revenue Code of 1986, as amended, and (B) whether the project has received
an allocation of tax-exempt bonds under chapter 474A, with subitem (B) as the most
important criteria;
deleted text end

deleted text begin (ii) shall grant projects receiving an allocation of tax-exempt bonds under chapter 474A
the highest possible preference and, to the extent applicable, ahead of any preference
described in section 42(m)(1)(B) of the Internal Revenue Code of 1986, as amended;
deleted text end

deleted text begin (iii) shall exclude any per-unit cost limitations, cost reasonableness, or other similar
restrictions for residential rental housing projects financed with an allocation of tax-exempt
bonds under chapter 474A; and
deleted text end

deleted text begin (iv) shall not adopt or impose any additional rules, requirements, regulations, or
restrictions other than those required by section 42 of the Internal Revenue Code of 1986,
as amended, regarding the allocation of credits.
deleted text end

deleted text begin Each developer of a residential rental housing project that has received an allocation of
tax-exempt bonds under chapter 474A and the proposed issuer of such tax-exempt bonds
shall have standing to challenge the agency's qualified allocation plan for failure to comply
with this clause.
deleted text end

deleted text begin In the event of any conflict or inconsistency between this paragraph and section 462A.04,
the provisions of this paragraph shall govern and control. The provisions of paragraph (d)
shall not apply to any allocating agency other than the agency.
deleted text end

(e) For applications submitted for the first round, an allocating agency may allocate tax
credits only to the following types of projects:

(1) in the metropolitan area:

(i) new construction or substantial rehabilitation of projects in which, for the term of the
extended use period, at least 75 percent of the total tax credit units are single-room
occupancy, efficiency, or one bedroom units and which are affordable by households whose
income does not exceed 30 percent of the median income;

(ii) new construction or substantial rehabilitation family housing projects that are not
restricted to persons who are 55 years of age or older and in which, for the term of the
extended use period, at least 75 percent of the tax credit units contain two or more bedrooms
and at least one-third of the 75 percent contain three or more bedrooms; or

(iii) substantial rehabilitation projects in neighborhoods targeted by the city for
revitalization;

(2) outside the metropolitan area, projects which meet a locally identified housing need
and which are in short supply in the local housing market as evidenced by credible data
submitted with the application;

(3) projects that are not restricted to persons of a particular age group and in which, for
the term of the extended use period, a percentage of the units are set aside and rented to
persons:

(i) with a serious and persistent mental illness as defined in section 245.462, subdivision
20, paragraph (c);

(ii) with a developmental disability as defined in United States Code, title 42, section
6001, paragraph (5), as amended through December 31, 1990;

(iii) who have been assessed as drug dependent persons as defined in section 254A.02,
subdivision 5, and are receiving or will receive care and treatment services provided by an
approved treatment program as defined in section 254A.02, subdivision 2;

(iv) with a brain injury as defined in section 256B.093, subdivision 4, paragraph (a); or

(v) with permanent physical disabilities that substantially limit one or more major life
activities, if at least 50 percent of the units in the project are accessible as provided under
Minnesota Rules, chapter 1340;

(4) projects, whether or not restricted to persons of a particular age group, which preserve
existing subsidized housing, if the use of tax credits is necessary to prevent conversion to
market rate use or to remedy physical deterioration of the project which would result in loss
of existing federal subsidies; or

(5) projects financed by the Farmers Home Administration, or its successor agency,
which meet statewide distribution goals.

(f) Before the date for applications for the final round, the allocating agencies other than
the agency shall return all uncommitted and unallocated tax credits to a unified pool for
allocation by the agency on a statewide basis.

(g) Unused portions of the state ceiling for low-income housing tax credits reserved to
cities and counties for allocation may be returned at any time to the agency for allocation.

(h) If an allocating agency determines, at any time after the initial commitment or
allocation for a specific project, that a project is no longer eligible for all or a portion of the
low-income housing tax credits committed or allocated to the project, the credits must be
transferred to the agency to be reallocated pursuant to the procedures established in
paragraphs (f) to (h); provided that if the tax credits for which the project is no longer eligible
are from the current year's annual ceiling and the allocating agency maintains a waiting list,
the allocating agency may continue to commit or allocate the credits until not later than the
date of applications for the final round, at which time any uncommitted credits must be
transferred to the agency.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2018, section 462A.24, is amended to read:

462A.24 CONSTRUCTION new text begin ; GRANTS AND LOANS; PRIORITIES new text end .

new text begin (a) new text end This chapter is necessary for the welfare of the state of Minnesota and its inhabitants;
therefore, it shall be liberally construed to effect its purpose.

new text begin (b) To the extent practicable, the agency shall award grant and loan amounts with a
reasonable balance between nonmetropolitan and metropolitan areas of the state.
new text end

new text begin (c) Beginning with applications made in response to requests for proposals issued after
July 1, 2020, after final decisions are made on applications for programs of the agency, the
results of any quantitative scoring system used to rank applications shall be posted on the
agency website.
new text end

Sec. 26.

Minnesota Statutes 2018, section 462A.33, subdivision 1, is amended to read:

Subdivision 1.

Created.

new text begin (a) new text end The economic development and housing challenge program
is created to be administered by the agency. new text begin Notwithstanding section 462A.24, this section
shall be construed based on the specific language within this section and within an
appropriation pursuant to this section.
new text end

deleted text begin (a) deleted text end new text begin (b) new text end The program shall provide grants or loans for the purpose of construction,
acquisition, rehabilitation, demolition or removal of existing structures, construction
financing, permanent financing, interest rate reduction, refinancing, and gap financing of
housing to support economic development and redevelopment activities or job creation or
job preservation within a community or region by meeting locally identified housing needs.

Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,
rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household
can afford for housing, based on industry standards and practices.

deleted text begin (b) deleted text end new text begin (c) new text end Preference for grants and loans shall be given to comparable proposals that include
regulatory changes or waivers that result in identifiable cost avoidance or cost reductions,
such as increased density, flexibility in site development standards, or zoning code
requirements. Preference must also be given among comparable proposals to proposals for
projects that are accessible to transportation systems, jobs, schools, and other services.

deleted text begin (c) deleted text end new text begin (d) new text end If a grant or loan is used for demolition or removal of existing structures, the
cleared land must be used for the construction of housing to be owned or rented by persons
who meet the income limits of this section or for other housing-related purposes that primarily
benefit the persons residing in the adjacent housing. In making selections for grants or loans
for projects that demolish affordable housing units, the agency must review the potential
displacement of residents and consider the extent to which displacement of residents is
minimized.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 27.

new text begin [462A.355] ADVANCES TO MINNESOTA MANUFACTURED HOME
RELOCATION TRUST FUND.
new text end

new text begin (a) The Minnesota Housing Finance Agency or Department of Management and Budget
as determined by the commissioner of management and budget, is authorized to advance
up to $400,000 from state appropriations or other resources to the Minnesota manufactured
home relocation trust fund established under section 462A.35 if the account balance in the
Minnesota manufactured home relocation trust fund is insufficient to pay the amounts
claimed under section 327C.095, subdivision 13.
new text end

new text begin (b) The Minnesota Housing Finance Agency or Department of Management and Budget
shall be reimbursed from the Minnesota manufactured home relocation trust fund for any
money advanced by the agency under paragraph (a) to the fund. Approved claims for payment
to manufactured home owners shall be paid prior to the money being advanced by the agency
or the department to the fund.
new text end

Sec. 28.

Minnesota Statutes 2018, section 462A.38, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

A workforce and affordable homeownership development
program is established to award homeownership development grants to new text begin cities, tribal
governments, new text end nonprofit organizations, cooperatives created under chapter 308A or 308B,
and community land trusts created for the purposes outlined in section 462A.31, subdivision
1, for development of workforce and affordable homeownership projects. The purpose of
the program is to increase the supply of workforce and affordable, owner-occupied
multifamily or single-family housing throughout Minnesota.

Sec. 29.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Aggregate bond limitation. new text end

new text begin "Aggregate bond limitation" means up to 55
percent of the reasonably expected aggregate basis of a residential rental project and the
land on which the project is or will be located.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 30.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin AMI. new text end

new text begin "AMI" means the area median income for the applicable county or
metropolitan area as published by the Department of Housing and Urban Development, as
adjusted for household size.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 31.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 12a. new text end

new text begin LIHTC. new text end

new text begin "LIHTC" means low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 32.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 21a. new text end

new text begin Preservation project. new text end

new text begin "Preservation project" means any residential rental
project, regardless of whether or not the project is restricted to persons of a certain age or
older, that is expected to generate low-income housing tax credits under section 42 of the
Internal Revenue Code of 1986, as amended, and (1) receives federal project-based rental
assistance, or (2) is funded through a loan from or guaranteed by the United States
Department of Agriculture's Rural Development Program. In addition, to qualify as a
preservation project, the amount of bonds requested in the application must not exceed the
aggregate bond limitation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 33.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 30. new text end

new text begin 30 percent AMI residential rental project. new text end

new text begin "30 percent AMI residential
rental project" means a residential rental project that does not otherwise qualify as a
preservation project, is expected to generate low-income housing tax credits under section
42 of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential
units, and in which:
new text end

new text begin (1) all the residential units of the project:
new text end

new text begin (i) are reserved for tenants whose income, on average, is 30 percent of AMI or less;
new text end

new text begin (ii) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code
of 1986, as amended; and
new text end

new text begin (iii) are subject to rent and income restrictions for a period of not less than 30 years; or
new text end

new text begin (2)(i) is located outside of the metropolitan area as defined in section 473.121, subdivision
2, and within a county or metropolitan area that has a current median area gross income
that is less than the statewide area median income for Minnesota;
new text end

new text begin (ii) all of the units of the project are rent-restricted in accordance with section 42(g)(2)
of the Internal Revenue Code of 1986, as amended; and
new text end

new text begin (iii) all of the units of the project are subject to the applicable rent and income restrictions
for a period of not less than 30 years.
new text end

new text begin In addition, to qualify as a 30 percent AMI residential project, the amount of bonds
requested in the application must not exceed the aggregate bond limitation.
new text end

new text begin For purposes of this subdivision, "on average" means the average of the applicable
income limitation level for a project determined on a unit-by-unit basis for example, a project
with one-half of its units subject to income limitations of not greater than 20 percent AMI
and one-half subject to income limitations of not greater than 40 percent AMI would be
subject to an income limitation on average of not greater than 30 percent AMI.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 34.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 31. new text end

new text begin 50 percent AMI residential rental project. new text end

new text begin "50 percent AMI residential
rental project" means a residential rental project that does not qualify as a preservation
project or 30 percent AMI residential rental project, is expected to generate low-income
housing tax credits under section 42 of the Internal Revenue Code of 1986, as amended,
from 100 percent of its residential units, and in which all the residential units of the project:
new text end

new text begin (1) are reserved for tenants whose income, on average, is 50 percent of AMI or less;
new text end

new text begin (2) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code
of 1986, as amended; and
new text end

new text begin (3) are subject to rent and income restrictions for a period of not less than 30 years.
new text end

new text begin In addition, to qualify as a 50 percent AMI residential rental project, the amount of bonds
requested in the application must not exceed the aggregate bond limitation.
new text end

new text begin For purposes of this subdivision, "on average" means the average of the applicable
income limitation level for a project determined on a unit-by-unit basis for example, a project
with one-half of its units subject to income limitations of not greater than 40 percent AMI
and one-half subject to income limitations of not greater than 60 percent AMI would be
subject to an income limitation on average of not greater than 50 percent AMI.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 35.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 32. new text end

new text begin 100 percent LIHTC project. new text end

new text begin "100 percent LIHTC project" means a residential
rental project that is expected to generate low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential units
and does not otherwise qualify as a preservation project, 30 percent AMI residential rental
project, or 50 percent AMI residential rental project. In addition, to qualify as a 100 percent
LIHTC project, the amount of bonds requested in the application must not exceed the
aggregate bond limitation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 36.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 33. new text end

new text begin 20 percent LIHTC project. new text end

new text begin "20 percent LIHTC project" means a residential
rental project that is expected to generate low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended, from at least 20 percent of its residential
units and does not otherwise qualify as a preservation project, 30 percent AMI residential
rental project, 50 percent AMI residential rental project, or 100 percent LIHTC project. In
addition, to qualify as a 20 percent LIHTC project, the amount of bonds requested in the
application must not exceed the aggregate bond limitation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 37.

Minnesota Statutes 2018, section 474A.03, subdivision 1, is amended to read:

Subdivision 1.

Under federal tax law; allocations.

At the beginning of each calendar
year after December 31, 2001, the commissioner shall determine the aggregate dollar amount
of the annual volume cap under federal tax law for the calendar year, and of this amount
the commissioner shall make the following allocation:

(1) $74,530,000 to the small issue pool;

(2) $122,060,000 to the housing pool, of which deleted text begin 31 deleted text end new text begin 27 new text end percent of the adjusted allocation
is reserved until the last Monday in deleted text begin July deleted text end new text begin June each year until 2021 new text end for single-family housing
programs new text begin , after which 31 percent of the adjusted allocation is reserved until the last Monday
in June for single-family programs new text end ;

(3) $12,750,000 to the public facilities pool; and

(4) amounts to be allocated as provided in subdivision 2a.

If the annual volume cap is greater or less than the amount of bonding authority allocated
under clauses (1) to (4) and subdivision 2a, paragraph (a), clauses (1) to (4), the allocation
must be adjusted so that each adjusted allocation is the same percentage of the annual volume
cap as each original allocation is of the total bonding authority originally allocated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 38.

Minnesota Statutes 2018, section 474A.04, subdivision 1a, is amended to read:

Subd. 1a.

Entitlement reservations.

Any amount returned by an entitlement issuer
before deleted text begin July 15 deleted text end new text begin the last Monday in June new text end shall be reallocated through the housing pool. Any
amount returned on or after deleted text begin July 15 deleted text end new text begin the last Monday in June new text end shall be reallocated through
the unified pool. An amount returned after the last Monday in November shall be reallocated
to the Minnesota Housing Finance Agency.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 39.

Minnesota Statutes 2018, section 474A.061, subdivision 1, is amended to read:

Subdivision 1.

Allocation application new text begin ; small issue pool and public facilities pool new text end .

(a)
new text begin For any requested allocations from the small issue pool and the public facilities pool, new text end an
issuer may apply for an allocation under this section by submitting to the department an
application on forms provided by the department, accompanied by (1) a preliminary
resolution, (2) a statement of bond counsel that the proposed issue of obligations requires
an allocation under this chapter and the Internal Revenue Code, (3) the type of qualified
bonds to be issued, (4) an application deposit in the amount of one percent of the requested
allocation before the last Monday in deleted text begin July deleted text end new text begin June new text end , or in the amount of two percent of the
requested allocation on or after the last Monday in deleted text begin July deleted text end new text begin June new text end , new text begin and new text end (5) a public purpose
scoring worksheet for manufacturing project and enterprise zone facility project applications deleted text begin ,
and (6) for residential rental projects, a statement from the applicant or bond counsel as to
whether the project preserves existing federally subsidized housing for residential rental
project applications and whether the project is restricted to persons who are 55 years of age
or older deleted text end . The issuer must pay the application deposit deleted text begin by a check made payable deleted text end to the
Department of Management and Budget. The Minnesota Housing Finance Agency, the
Minnesota Rural Finance Authority, and the Minnesota Office of Higher Education may
apply for and receive an allocation under this section without submitting an application
deposit.

(b) An entitlement issuer may not apply for an allocation deleted text begin from the public facilities pool deleted text end new text begin
under this subdivision new text end unless it has either permanently issued bonds equal to the amount of
its entitlement allocation for the current year plus any amount of bonding authority carried
forward from previous years or returned for reallocation all of its unused entitlement
allocation. deleted text begin An entitlement issuer may not apply for an allocation from the housing pool
unless it either has permanently issued bonds equal to any amount of bonding authority
carried forward from a previous year or has returned for reallocation any unused bonding
authority carried forward from a previous year. deleted text end For purposes of this subdivision, its
entitlement allocation includes an amount obtained under section 474A.04, subdivision 6.
deleted text begin This paragraph does not apply to an application from the Minnesota Housing Finance Agency
for an allocation under subdivision 2a for cities who choose to have the agency issue bonds
on their behalf.
deleted text end

(c) If an application is rejected under this section, the commissioner must notify the
applicant and return the application deposit to the applicant within 30 days unless the
applicant requests in writing that the application be resubmitted. The granting of an allocation
of bonding authority under this section must be evidenced by a certificate of allocation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 40.

Minnesota Statutes 2018, section 474A.061, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Allocation application; housing pool. new text end

new text begin (a) For any requested allocations from
the housing pool, an issuer may apply for an allocation under this section by submitting to
the department an application on forms provided by the department, accompanied by (1) a
preliminary resolution, (2) a statement of bond counsel that the proposed issue of obligations
requires an allocation under this chapter and the Internal Revenue Code, (3) an application
deposit in the amount of two percent of the requested allocation, (4) a sworn statement from
the applicant identifying the project as either a preservation project, 30 percent AMI
residential rental project, 50 percent AMI residential rental project, 100 percent LIHTC
project, 20 percent LIHTC project, or any other residential rental project, and (5) a
certification from the applicant or its accountant stating that the requested allocation does
not exceed the aggregate bond limitation. The issuer must pay the application deposit to the
Department of Management and Budget. The Minnesota Housing Finance Agency may
apply for and receive an allocation under this section without submitting an application
deposit.
new text end

new text begin (b) An entitlement issuer may not apply for an allocation from the housing pool unless
it either has permanently issued bonds equal to any amount of bonding authority carried
forward from a previous year or has returned for reallocation any unused bonding authority
carried forward from a previous year. For purposes of this subdivision, its entitlement
allocation includes an amount obtained under section 474A.04, subdivision 6. This paragraph
does not apply to an application from the Minnesota Housing Finance Agency for an
allocation under subdivision 2a for cities who choose to have the agency issue bonds on the
city's behalf.
new text end

new text begin (c) If an application is rejected under this section, the commissioner must notify the
applicant and return the application deposit to the applicant within 30 days unless the
applicant requests in writing that the application be resubmitted. The granting of an allocation
of bonding authority under this section must be evidenced by a certificate of allocation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 41.

Minnesota Statutes 2018, section 474A.061, subdivision 2a, is amended to read:

Subd. 2a.

Housing pool allocation.

(a) Commencing on the second Tuesday in January
and continuing on each Monday through deleted text begin July 15 deleted text end new text begin the last Monday in June new text end , the commissioner
shall allocate available bonding authority from the housing pool to applications received
on or before the Monday of the preceding week for residential rental projects that meet the
eligibility criteria under section 474A.047. Allocations of available bonding authority from
the housing pool for eligible residential rental projects shall be awarded in the following
order of priority: deleted text begin (1) projects that preserve existing federally subsidized housing; (2) projects
that are not restricted to persons who are 55 years of age or older; and (3) other residential
rental projects. Prior to May 15, no allocation shall be made to a project restricted to persons
who are 55 years of age or older.
deleted text end

new text begin (1) preservation projects;
new text end

new text begin (2) 30 percent AMI residential rental projects;
new text end

new text begin (3) 50 percent AMI residential rental projects;
new text end

new text begin (4) 100 percent LIHTC projects;
new text end

new text begin (5) 20 percent LIHTC projects; and
new text end

new text begin (6) other residential rental projects for which the amount of bonds requested in their
respective applications do not exceed the aggregate bond limitation.
new text end

deleted text begin If an issuer that receives an allocation under this paragraph does not issue obligations equal
deleted text end deleted text begin to all or a portion of the allocation received within 120 days of the allocation or returns the
deleted text end deleted text begin allocation to the commissioner, the amount of the allocation is canceled and returned for
deleted text end deleted text begin reallocation through the housing pool or to the unified pool after July 15. deleted text end new text begin If there are two
or more applications for residential rental projects at the same priority level and there is
insufficient bonding authority to provide allocations for all the projects in any one allocation
period, available bonding authority shall be randomly awarded by lot but only for projects
that can receive the full amount of their respective requested allocations. If a residential
rental project does not receive any of its requested allocation pursuant to this paragraph and
the project applies for an allocation of bonds again in the same calendar year or to the next
successive housing pool, the project shall be fully funded up to its original application
request for bonding authority before any new project, applying in the same allocation period,
that has an equal priority shall receive bonding authority. An issuer that receives an allocation
under this paragraph must issue obligations equal to all or a portion of the allocation received
on or before 180 days of the allocation. If an issuer that receives an allocation under this
paragraph does not issue obligations equal to all or a portion of the allocation received
within the time period provided in this paragraph or returns the allocation to the
commissioner, the amount of the allocation is canceled and returned for reallocation through
the housing pool or to the unified pool after July 1.
new text end

(b) After January 1, and through January 15, The Minnesota Housing Finance Agency
may accept applications from cities for single-family housing programs which meet program
requirements as follows:

(1) the housing program must meet a locally identified housing need and be economically
viable;

(2) the adjusted income of home buyers may not exceed 80 percent of the greater of
statewide or area median income as published by the Department of Housing and Urban
Development, adjusted for household size;

(3) house price limits may not exceed the federal price limits established for mortgage
revenue bond programs. Data on the home purchase price amount, mortgage amount, income,
household size, and race of the households served in the previous year's single-family
housing program, if any, must be included in each application; and

(4) for applicants who choose to have the agency issue bonds on their behalf, an
application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal
to one percent of the requested allocation must be submitted to the Minnesota Housing
Finance Agency before the agency forwards the list specifying the amounts allocated to the
commissioner under paragraph (d). The agency shall submit the city's application fee and
application deposit to the commissioner when requesting an allocation from the housing
pool.

Applications by a consortium shall include the name of each member of the consortium
and the amount of allocation requested by each member.

(c) Any amounts remaining in the housing pool after deleted text begin July deleted text end new text begin June new text end 15 are available for
single-family housing programs for cities that applied in January and received an allocation
under this section in the same calendar year. For a city that chooses to issue bonds on its
own behalf or pursuant to a joint powers agreement, the agency must allot available bonding
authority based on the formula in paragraphs (d) and (f). Allocations will be made loan by
loan, on a first-come, first-served basis among cities on whose behalf the Minnesota Housing
Finance Agency issues bonds.

Any city that received an allocation pursuant to paragraph (f) in the same calendar year
that wishes to issue bonds on its own behalf or pursuant to a joint powers agreement for an
amount becoming available for single-family housing programs after deleted text begin July deleted text end new text begin June new text end 15 shall
notify the Minnesota Housing Finance Agency by deleted text begin July deleted text end new text begin June new text end 15. The Minnesota Housing
Finance Agency shall notify each city making a request of the amount of its allocation within
three business days after deleted text begin July deleted text end new text begin June new text end 15. The city must comply with paragraph (f).

For purposes of paragraphs (a) to (h), "city" means a county or a consortium of local
government units that agree through a joint powers agreement to apply together for
single-family housing programs, and has the meaning given it in section 462C.02, subdivision
6. "Agency" means the Minnesota Housing Finance Agency.

(d) The total amount of allocation for mortgage bonds for one city is limited to the lesser
of: (i) the amount requested, or (ii) the product of the total amount available for mortgage
bonds from the housing pool, multiplied by the ratio of each applicant's population as
determined by the most recent estimate of the city's population released by the state
demographer's office to the total of all the applicants' population, except that each applicant
shall be allocated a minimum of $100,000 regardless of the amount requested or the amount
determined under the formula in clause (ii). If a city applying for an allocation is located
within a county that has also applied for an allocation, the city's population will be deducted
from the county's population in calculating the amount of allocations under this paragraph.

Upon determining the amount of each applicant's allocation, the agency shall forward
to the commissioner a list specifying the amounts allotted to each application with all
application fees and deposits from applicants who choose to have the agency issue bonds
on their behalf.

Total allocations from the housing pool for single-family housing programs may not
exceed deleted text begin 31 deleted text end new text begin 27 new text end percent of the adjusted allocation to the housing pool until after deleted text begin July deleted text end new text begin June new text end 15 new text begin
in 2020 and 2021, after which the allocations may not exceed 31 percent of the adjusted
allocation to the housing pool until after June 15 new text end .

(e) The agency may issue bonds on behalf of participating cities. The agency shall request
an allocation from the commissioner for all applicants who choose to have the agency issue
bonds on their behalf and the commissioner shall allocate the requested amount to the
agency. The agency may request an allocation at any time after the second Tuesday in
January and through the last Monday in deleted text begin July deleted text end new text begin June new text end . After awarding an allocation and receiving
a notice of issuance for the mortgage bonds issued on behalf of the participating cities, the
commissioner shall transfer the application deposits to the Minnesota Housing Finance
Agency to be returned to the participating cities. The Minnesota Housing Finance Agency
shall return any application deposit to a city that paid an application deposit under paragraph
(b), clause (4), but was not part of the list forwarded to the commissioner under paragraph
(d).

(f) A city may choose to issue bonds on its own behalf or through a joint powers
agreement and may request an allocation from the commissioner by forwarding an application
with an application fee pursuant to section 474A.03, subdivision 4, and a one percent
application deposit to the commissioner no later than the Monday of the week preceding
an allocation. If the total amount requested by all applicants exceeds the amount available
in the pool, the city may not receive a greater allocation than the amount it would have
received under the list forwarded by the Minnesota Housing Finance Agency to the
commissioner. No city may request or receive an allocation from the commissioner until
the list under paragraph (d) has been forwarded to the commissioner. A city must request
an allocation from the commissioner no later than the last Monday in deleted text begin July deleted text end new text begin June new text end . No city
may receive an allocation from the housing pool for mortgage bonds which has not first
applied to the Minnesota Housing Finance Agency. The commissioner shall allocate the
requested amount to the city or cities subject to the limitations under this paragraph.

If a city issues mortgage bonds from an allocation received under this paragraph, the
issuer must provide for the recycling of funds into new loans. If the issuer is not able to
provide for recycling, the issuer must notify the commissioner in writing of the reason that
recycling was not possible and the reason the issuer elected not to have the Minnesota
Housing Finance Agency issue the bonds. "Recycling" means the use of money generated
from the repayment and prepayment of loans for further eligible loans or for the redemption
of bonds and the issuance of current refunding bonds.

(g) No entitlement city or county or city in an entitlement county may apply for or be
allocated authority to issue mortgage bonds or use mortgage credit certificates from the
housing pool. No city in an entitlement county may apply for or be allocated authority to
issue residential rental bonds from the housing pool or the unified pool.

(h) A city that does not use at least 50 percent of its allotment by the date applications
are due for the first allocation that is made from the housing pool for single-family housing
programs in the immediately succeeding calendar year may not apply to the housing pool
for a single-family mortgage bond or mortgage credit certificate program allocation that
exceeds the amount of its allotment for the preceding year that was used by the city in the
immediately preceding year or receive an allotment from the housing pool in the succeeding
calendar year that exceeds the amount of its allotment for the preceding year that was used
in the preceding year. The minimum allotment is $100,000 for an allocation made prior to
deleted text begin July deleted text end new text begin June new text end 15, regardless of the amount used in the preceding calendar year, except that a
city whose allocation in the preceding year was the minimum amount of $100,000 and who
did not use at least 50 percent of its allocation from the preceding year is ineligible for an
allocation in the immediate succeeding calendar year. Each local government unit in a
consortium must meet the requirements of this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 42.

Minnesota Statutes 2018, section 474A.061, subdivision 2b, is amended to read:

Subd. 2b.

Small issue pool allocation.

Commencing on the second Tuesday in January
and continuing on each Monday through the last Monday in deleted text begin July deleted text end new text begin June new text end , the commissioner
shall allocate available bonding authority from the small issue pool to applications received
on or before the Monday of the preceding week for manufacturing projects and enterprise
zone facility projects. From the second Tuesday in January through the last Monday in deleted text begin July deleted text end new text begin
June new text end , the commissioner shall reserve $5,000,000 of the available bonding authority from
the small issue pool for applications for agricultural development bond loan projects of the
Minnesota Rural Finance Authority.

Beginning in calendar year 2002, on the second Tuesday in January through the last
Monday in deleted text begin July deleted text end new text begin June new text end , the commissioner shall reserve $10,000,000 of available bonding
authority in the small issue pool for applications for student loan bonds of or on behalf of
the Minnesota Office of Higher Education. The total amount of allocations for student loan
bonds from the small issue pool may not exceed $10,000,000 per year.

The commissioner shall reserve $10,000,000 until the day after the last Monday in
February, $10,000,000 until the day after the last Monday in April, and $10,000,000 until
the day after the last Monday in June in the small issue pool for enterprise zone facility
projects and manufacturing projects. The amount of allocation provided to an issuer for a
specific enterprise zone facility project or manufacturing project will be based on the number
of points received for the proposed project under the scoring system under section 474A.045.

If there are two or more applications for manufacturing and enterprise zone facility
projects from the small issue pool and there is insufficient bonding authority to provide
allocations for all projects in any one week, the available bonding authority shall be awarded
based on the number of points awarded a project under section 474A.045, with those projects
receiving the greatest number of points receiving allocation first. If two or more applications
receive an equal number of points, available bonding authority shall be awarded by lot
unless otherwise agreed to by the respective issuers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 43.

Minnesota Statutes 2018, section 474A.061, subdivision 2c, is amended to read:

Subd. 2c.

Public facilities pool allocation.

From the beginning of the calendar year and
continuing for a period of 120 days, the commissioner shall reserve $5,000,000 of the
available bonding authority from the public facilities pool for applications for public facilities
projects to be financed by the Western Lake Superior Sanitary District. Commencing on
the second Tuesday in January and continuing on each Monday through the last Monday
in deleted text begin July deleted text end new text begin June new text end , the commissioner shall allocate available bonding authority from the public
facilities pool to applications for eligible public facilities projects received on or before the
Monday of the preceding week. If there are two or more applications for public facilities
projects from the pool and there is insufficient available bonding authority to provide
allocations for all projects in any one week, the available bonding authority shall be awarded
by lot unless otherwise agreed to by the respective issuers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 44.

Minnesota Statutes 2018, section 474A.061, subdivision 4, is amended to read:

Subd. 4.

Return of allocation; deposit refund new text begin for small issue pool or public facilities
pool new text end .

(a) new text begin For any requested allocations from the small issue pool or the public facilities
pool, new text end if an issuer that receives an allocation under this section determines that it will not
issue obligations equal to all or a portion of the allocation received under this section within
120 days of allocation or within the time period permitted by federal tax law, whichever is
less, the issuer must notify the department. If the issuer notifies the department or the 120-day
period since allocation has expired prior to the last Monday in deleted text begin July deleted text end new text begin June new text end , the amount of
allocation is canceled and returned for reallocation through the pool from which it was
originally allocated. If the issuer notifies the department or the 120-day period since allocation
has expired on or after the last Monday in deleted text begin July deleted text end new text begin June new text end , the amount of allocation is canceled
and returned for reallocation through the unified pool. If the issuer notifies the department
after the last Monday in November, the amount of allocation is canceled and returned for
reallocation to the Minnesota Housing Finance Agency. To encourage a competitive
application process, the commissioner shall reserve, for new applications, the amount of
allocation that is canceled and returned for reallocation under this section for a minimum
of seven calendar days.

(b) An issuer that returns for reallocation all or a portion of an allocation received under
this deleted text begin section deleted text end new text begin subdivision new text end within 120 days of allocation shall receive within 30 days a refund
equal to:

(1) one-half of the application deposit for the amount of bonding authority returned
within 30 days of receiving allocation;

(2) one-fourth of the application deposit for the amount of bonding authority returned
between 31 and 60 days of receiving allocation; and

(3) one-eighth of the application deposit for the amount of bonding authority returned
between 61 and 120 days of receiving allocation.

(c) No refund shall be available for allocations returned 120 or more days after receiving
the allocation or beyond the last Monday in November.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 45.

Minnesota Statutes 2018, section 474A.061, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Return of allocation; deposit refund for housing pool. new text end

new text begin (a) For any requested
allocations from the housing pool, if an issuer that receives an allocation under this section
determines that it will not permanently issue obligations equal to all or a portion of the
allocation received under this section within the time period provided under section
474A.061, subdivision 2a, paragraph (a), or within the time period permitted by federal tax
law, whichever is less, the issuer must notify the department. If the issuer notifies the
department or the time period provided under section 474A.061, subdivision 2a, paragraph
(a), has expired prior to the last Monday in June, the amount of allocation is canceled and
returned for reallocation through the housing pool. If the issuer notifies the department or
the time period provided under section 474A.061, subdivision 2a, paragraph (a), has expired
on or after the last Monday in June, the amount of allocation is canceled and returned for
reallocation through the unified pool. If the issuer notifies the department after the last
Monday in November, the amount of allocation is canceled and returned for reallocation
to the Minnesota Housing Finance Agency. To encourage a competitive application process,
the commissioner shall reserve, for new applications, the amount of allocation that is canceled
and returned for reallocation under this section for a minimum of seven calendar days.
new text end

new text begin (b) An issuer that returns for reallocation all or a portion of an allocation received under
this subdivision within 180 days of allocation shall receive within 30 days a refund equal
to:
new text end

new text begin (1) one-half of the application deposit for the amount of bonding authority returned
within 45 days of receiving allocation;
new text end

new text begin (2) one-fourth of the application deposit for the amount of bonding authority returned
between 46 and 90 days of receiving allocation; and
new text end

new text begin (3) one-eighth of the application deposit for the amount of bonding authority returned
between 91 and 180 days of receiving allocation.
new text end

new text begin (c) No refund shall be available for allocations returned 180 or more days after receiving
the allocation or beyond the last Monday in November.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 46.

Minnesota Statutes 2018, section 474A.062, is amended to read:

474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION deleted text begin 120-DAY deleted text end ISSUANCE
EXEMPTION.

The Minnesota Office of Higher Education is exempt from deleted text begin the 120-day deleted text end new text begin any time
limitation on new text end issuance deleted text begin requirements deleted text end new text begin of bonds set forth new text end in this chapter and may carry forward
allocations for student loan bonds, subject to carryforward notice requirements of section
474A.131, subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 47.

Minnesota Statutes 2018, section 474A.091, subdivision 1, is amended to read:

Subdivision 1.

Unified pool amount.

On the day after the last Monday in deleted text begin July deleted text end new text begin June new text end any
bonding authority remaining unallocated from the small issue pool, the housing pool, and
the public facilities pool is transferred to the unified pool and must be reallocated as provided
in this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 48.

Minnesota Statutes 2018, section 474A.091, subdivision 2, is amended to read:

Subd. 2.

Application new text begin for residential rental projects new text end .

new text begin (a) new text end Issuers may apply for an
allocation new text begin for residential rental bonds new text end under this section by submitting to the department an
application on forms provided by the department accompanied by new text begin :
new text end

(1) a preliminary resolution deleted text begin , deleted text end new text begin ;
new text end

(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code deleted text begin , deleted text end new text begin ;
new text end

(3) deleted text begin the type of qualified bonds to be issued, (4) deleted text end an application deposit in the amount of
two percent of the requested allocation deleted text begin , (5) a public purpose scoring worksheet for
manufacturing and enterprise zone applications, and (6) for residential rental projects, a
statement from the applicant or bond counsel as to whether the project preserves existing
federally subsidized housing and whether the project is restricted to persons who are 55
years of age or older. deleted text end new text begin ;
new text end

new text begin (4) a sworn statement from the applicant identifying the project as a preservation project,
30 percent AMI residential rental project, 50 percent AMI residential rental project, 100
percent LIHTC project, 20 percent LIHTC project, or any other residential rental project;
and
new text end

new text begin (5) a certification from the applicant or its accountant stating that the requested allocation
does not exceed the aggregate bond limitation.
new text end

The issuer must pay the application deposit deleted text begin by check deleted text end new text begin to the Department of Management
and Budget new text end . An entitlement issuer may not apply for an allocation for deleted text begin public facility bonds, deleted text end
residential rental project bonds deleted text begin , or mortgage bonds deleted text end under this section unless it has either
permanently issued bonds equal to the amount of its entitlement allocation for the current
year plus any amount carried forward from previous years or returned for reallocation all
of its unused entitlement allocation. For purposes of this subdivision, its entitlement allocation
includes an amount obtained under section 474A.04, subdivision 6.

new text begin (b) An issuer that receives an allocation under this subdivision must permanently issue
obligations equal to all or a portion of the allocation received on or before 180 days of the
allocation. If an issuer that receives an allocation under this subdivision does not permanently
issue obligations equal to all or a portion of the allocation received within the time period
provided in this paragraph or returns the allocation to the commissioner, the amount of the
allocation is canceled and returned for reallocation through the unified pool.
new text end

new text begin (c) new text end deleted text begin Notwithstanding the restrictions imposed on entitlement issuers under this subdivision,
deleted text end deleted text begin the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
deleted text end deleted text begin under this section prior to the first Monday in October, but may be awarded allocations for
deleted text end deleted text begin mortgage bonds from the unified pool on or after the first Monday in October. deleted text end The Minnesota
Housing Finance Agency deleted text begin , the Minnesota Office of Higher Education, and the Minnesota
deleted text end deleted text begin Rural Finance Authority deleted text end may apply for and receive an allocation under this section without
submitting an application deposit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 49.

Minnesota Statutes 2018, section 474A.091, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Application for all other types of qualified bonds. new text end

new text begin (a) Issuers may apply
for an allocation for all types of qualified bonds other than residential rental bonds under
this section by submitting to the department an application on forms provided by the
department accompanied by:
new text end

new text begin (1) a preliminary resolution;
new text end

new text begin (2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code;
new text end

new text begin (3) the type of qualified bonds to be issued;
new text end

new text begin (4) an application deposit in the amount of two percent of the requested allocation; and
new text end

new text begin (5) a public purpose scoring worksheet for manufacturing and enterprise zone
applications.
new text end

new text begin The issuer must pay the application deposit to the Department of Management and Budget.
An entitlement issuer may not apply for an allocation for public facility bonds or mortgage
bonds under this section unless it has either permanently issued bonds equal to the amount
of its entitlement allocation for the current year plus any amount carried forward from
previous years or returned for reallocation all of its unused entitlement allocation. For
purposes of this subdivision, an entitlement allocation includes an amount obtained under
section 474A.04, subdivision 6.
new text end

new text begin (b) An issuer that receives an allocation under this subdivision must permanently issue
obligations equal to all or a portion of the allocation received on or before 120 days of the
allocation. If an issuer that receives an allocation under this subdivision does not permanently
issue obligations equal to all or a portion of the allocation received within the time period
provided in this paragraph or returns the allocation to the commissioner, the amount of the
allocation is canceled and returned for reallocation through the unified pool.
new text end

new text begin (c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision,
the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
under this section prior to the first Monday in October, but may be awarded allocations for
mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota
Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota
Rural Finance Authority may apply for and receive an allocation under this section without
submitting an application deposit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 50.

Minnesota Statutes 2018, section 474A.091, subdivision 3, is amended to read:

Subd. 3.

Allocation procedure.

(a) The commissioner shall allocate available bonding
authority under this section on the Monday of every other week beginning with the first
Monday in deleted text begin August deleted text end new text begin July new text end through and on the last Monday in November. Applications for
allocations must be received by the department by 4:30 p.m. on the Monday preceding the
Monday on which allocations are to be made. If a Monday falls on a holiday, the allocation
will be made or the applications must be received by the next business day after the holiday.

(b) Prior to October 1, only the following applications shall be awarded allocations from
the unified pool. Allocations shall be awarded in the following order of priority:

(1) applications for residential rental project bonds;

(2) applications for small issue bonds for manufacturing projects; and

(3) applications for small issue bonds for agricultural development bond loan projects.

(c) On the first Monday in October through the last Monday in November, allocations
shall be awarded from the unified pool in the following order of priority:

(1) applications for student loan bonds issued by or on behalf of the Minnesota Office
of Higher Education;

(2) applications for mortgage bonds;

(3) applications for public facility projects funded by public facility bonds;

(4) applications for small issue bonds for manufacturing projects;

(5) applications for small issue bonds for agricultural development bond loan projects;

(6) applications for residential rental project bonds;

(7) applications for enterprise zone facility bonds;

(8) applications for governmental bonds; and

(9) applications for redevelopment bonds.

(d) If there are two or more applications for manufacturing projects from the unified
pool and there is insufficient bonding authority to provide allocations for all manufacturing
projects in any one allocation period, the available bonding authority shall be awarded based
on the number of points awarded a project under section 474A.045 with those projects
receiving the greatest number of points receiving allocation first. If two or more applications
for manufacturing projects receive an equal amount of points, available bonding authority
shall be awarded by lot unless otherwise agreed to by the respective issuers.

(e) If there are two or more applications for enterprise zone facility projects from the
unified pool and there is insufficient bonding authority to provide allocations for all enterprise
zone facility projects in any one allocation period, the available bonding authority shall be
awarded based on the number of points awarded a project under section 474A.045 with
those projects receiving the greatest number of points receiving allocation first. If two or
more applications for enterprise zone facility projects receive an equal amount of points,
available bonding authority shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(f) If there are two or more applications for residential rental projects from the unified
pool and there is insufficient bonding authority to provide allocations for all residential
rental projects in any one allocation period, the available bonding authority shall be awarded
in the following order of priority: (1) deleted text begin projects that preserve existing federally subsidized
housing; (2) projects that are not restricted to persons who are 55 years of age or older; and
(3) deleted text end new text begin preservation projects; (2) 30 percent AMI residential rental projects; (3) 50 percent AMI
residential rental projects for which the amount of bonds requested in their respective
applications do not exceed the aggregate bond limitations; (4) 100 percent LIHTC projects;
(5) 20 percent LIHTC projects; and (6) new text end other residential rental projects. new text begin If there are two or
more applications for residential rental projects at the same priority level and there is
insufficient bonding authority to provide allocations for all the projects in any one allocation
period, available bonding authority shall be randomly awarded by lot but only for projects
that can receive the full amount of their respective requested allocations. If a residential
rental project does not receive any of its requested allocation pursuant to this paragraph and
the project applies in the next successive housing pool or the next successive unified pool
for an allocation of bonds, the project shall be fully funded up to its original application
request for bonding authority before any new project, applying in the same allocation period,
that has an equal priority shall receive bonding authority.
new text end

(g) From the first Monday in deleted text begin August deleted text end new text begin July new text end through the last Monday in November,
$20,000,000 of bonding authority or an amount equal to the total annual amount of bonding
authority allocated to the small issue pool under section 474A.03, subdivision 1, less the
amount allocated to issuers from the small issue pool for that year, whichever is less, is
reserved within the unified pool for small issue bonds to the extent deleted text begin such deleted text end new text begin the new text end amounts are
available within the unified pool.

(h) The total amount of allocations for mortgage bonds from the housing pool and the
unified pool may not exceed:

(1) $10,000,000 for any one city; or

(2) $20,000,000 for any number of cities in any one county.

(i) The total amount of allocations for student loan bonds from the unified pool may not
exceed $25,000,000 per year.

(j) If there is insufficient bonding authority to fund all projects within any qualified bond
category other than enterprise zone facility projects, manufacturing projects, and residential
rental projects, allocations shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(k) If an application is rejected, the commissioner must notify the applicant and return
the application deposit to the applicant within 30 days unless the applicant requests in writing
that the application be resubmitted.

(l) The granting of an allocation of bonding authority under this section must be evidenced
by issuance of a certificate of allocation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 51.

Minnesota Statutes 2018, section 474A.091, subdivision 5, is amended to read:

Subd. 5.

Return of allocation; deposit refund.

(a) If an issuer that receives an allocation
under this section determines that it will not new text begin permanently new text end issue obligations equal to all or a
portion of the allocation received under this section within deleted text begin 120 deleted text end new text begin the applicable number of new text end
days deleted text begin of deleted text end new text begin after new text end the allocation new text begin required in this chapter new text end or within the time period permitted by
federal tax law, whichever is less, the issuer must notify the department. If the issuer notifies
the department or the deleted text begin 120-day deleted text end new text begin applicable new text end period since allocation has expired prior to the
last Monday in November, the amount of allocation is canceled and returned for reallocation
through the unified pool. If the issuer notifies the department on or after the last Monday
in November, the amount of allocation is canceled and returned for reallocation to the
Minnesota Housing Finance Agency. To encourage a competitive application process, the
commissioner shall reserve, for new applications, the amount of allocation that is canceled
and returned for reallocation under this section for a minimum of seven calendar days.

(b) An issuer that returns for reallocation all or a portion of an allocation new text begin for all types
of bonds other than residential rental project bonds new text end received under this section within 120
days of the allocation shall receive within 30 days a refund equal to:

(1) one-half of the application deposit for the amount of bonding authority returned
within 30 days of receiving the allocation;

(2) one-fourth of the application deposit for the amount of bonding authority returned
between 31 and 60 days of receiving the allocation; and

(3) one-eighth of the application deposit for the amount of bonding authority returned
between 61 and 120 days of receiving the allocation.

new text begin (c) An issuer that returns for reallocation all or a portion of an allocation for residential
rental project bonds received under this section within 180 days of the allocation shall
receive within 30 days a refund equal to:
new text end

new text begin (1) one-half of the application deposit for the amount of bonding authority returned
within 45 days of receiving the allocation;
new text end

new text begin (2) one-fourth of the application deposit for the amount of bonding authority returned
between 46 and 90 days of receiving the allocation; and
new text end

new text begin (3) one-eighth of the application deposit for the amount of bonding authority returned
between 91 and 180 days of receiving the allocation.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end No refund of the application deposit shall be available for allocations returned
on or after the last Monday in November.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 52.

Minnesota Statutes 2018, section 474A.131, subdivision 1, is amended to read:

Subdivision 1.

Notice of issue.

new text begin (a) new text end Each issuer deleted text begin that issues bonds deleted text end with an allocation
received under this chapter shall provide a notice of issue to the department on forms
provided by the department stating:

(1) the date of issuance of the bonds;

(2) the title of the issue;

(3) the principal amount of the bonds;

(4) the type of qualified bonds under federal tax law;

(5) the dollar amount of the bonds issued that were subject to the annual volume cap;
and

(6) for entitlement issuers, whether the allocation is from current year entitlement
authority or is from carryforward authority.

For obligations that are issued as a part of a series of obligations, a notice must be
provided for each series. A penalty of one-half of the amount of the application deposit not
to exceed $5,000 shall apply to any issue of obligations for which a notice of issue is not
provided to the department within five business days after issuance or before 4:30 p.m. on
the last business day in December, whichever occurs first. Within 30 days after receipt of
a notice of issue the department shall refund a portion of the application deposit equal to
one percent of the amount of the bonding authority actually issued if a one percent application
deposit was made, or equal to two percent of the amount of the bonding authority actually
issued if a two percent application deposit was made, less any penalty amount.

new text begin (b) If an issuer that receives an allocation under this chapter for a residential rental project
issues obligations as provided in this chapter, the commissioner shall refund 50 percent of
any application deposit previously paid within 30 days of the issuance of the obligations
and the remaining 50 percent will be refunded within 30 days after the date on which:
new text end

new text begin (1) final Internal Revenue Service Forms 8609 are provided to the commissioner with
respect to preservation projects, 30 percent AMI residential rental projects, 50 percent AMI
residential rental projects, 100 percent LIHTC projects, or 20 percent LIHTC projects, or
new text end

new text begin (2) the issuer provides a certification and any other reasonable documentation requested
by the commissioner evidencing that construction of the project has been completed.
new text end

new text begin If the issuer receives an allocation under this chapter for a residential rental project and
fails to issue the bonds within the time permitted by federal law, the application deposit
shall be forfeited.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 53.

Minnesota Statutes 2018, section 474A.131, subdivision 1b, is amended to read:

Subd. 1b.

Deadline for issuance of qualified bonds.

If an issuer fails to notify the
department before 4:30 p.m. on the last business day in December of new text begin the permanent new text end issuance
of obligations pursuant to an allocation received for any qualified bond project or issuance
of an entitlement allocation, the allocation is canceled and the bonding authority is allocated
to the Minnesota Housing Finance Agency for carryforward by the commissioner under
section 474A.091, subdivision 6.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 54.

Minnesota Statutes 2018, section 474A.14, is amended to read:

474A.14 NOTICE OF AVAILABLE AUTHORITY.

The department shall provide at its official website a written notice of the amount of
bonding authority in the housing, small issue, and public facilities pools as soon after January
1 as possible. The department shall provide at its official website a written notice of the
amount of bonding authority available for allocation in the unified pool as soon after deleted text begin August deleted text end new text begin
July new text end 1 as possible.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 55.

Minnesota Statutes 2018, section 474A.21, is amended to read:

474A.21 APPROPRIATION; RECEIPTS.

Any fees collected by the department under sections 474A.01 to 474A.21 must be
deposited in a separate account in the general fund. The amount necessary to refund
application deposits is appropriated to the department from the separate account in the
general fund for that purpose. The interest accruing on application deposits and any
application deposit not refunded as provided under section 474A.061, subdivision 4 new text begin or 7 new text end ,
or 474A.091, subdivision 5, or forfeited as provided under section 474A.131, new text begin subdivision
1, paragraph (b), or new text end subdivision 2, must be deposited in the housing trust fund account under
section 462A.201.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 56.

Minnesota Statutes 2018, section 504B.111, is amended to read:

504B.111 WRITTEN LEASE REQUIRED; PENALTY.

A landlord of a residential building with 12 or more residential units must have a written
lease for each unit rented to a residential tenant. new text begin The written lease must identify the specific
unit the residential tenant will occupy before the residential tenant signs the lease. new text end
Notwithstanding any other state law or city ordinance to the contrary, a landlord may ask
for the tenant's full name and date of birth on the lease and application. A landlord who fails
to provide a lease, as required under this section, is guilty of a petty misdemeanor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to leases entered into or renewed on or after that date.
new text end

Sec. 57.

new text begin [504B.146] LEASE DURATION NOTICE.
new text end

new text begin A written lease for a residential unit must identify the lease start date and lease end date.
If the lease requires the tenant to move in or out of the residential unit on a date other than
the first or last day of the month, and the rent is prorated, then the lease must indicate the
amount of the prorated rent for the relevant months. The information required by this section
must be provided on the first page of the lease.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to leases entered into or renewed on or after that date.
new text end

Sec. 58.

new text begin [504B.147] TIME PERIOD FOR NOTICE TO QUIT OR RENT INCREASE.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin This section applies to a residential lease that provides a
time period for the landlord to give notice to quit the premises or notice of a rent increase
that is different than the time period the tenant is required to give for notice of intention to
quit the premises. For purposes of this section, "notice to quit" includes a notice of
nonrenewal of a lease.
new text end

new text begin Subd. 2. new text end

new text begin Tenant option to choose notice period. new text end

new text begin The tenant may give notice of an
intention to quit the premises using either:
new text end

new text begin (1) the time period provided in the lease for the tenant to give a notice of intention to
quit the premises; or
new text end

new text begin (2) the time period provided in the lease for the landlord to give a notice to quit the
premises or notice of a rent increase.
new text end

new text begin Subd. 3. new text end

new text begin Landlord notice requirements. new text end

new text begin The landlord may not give a notice to quit the
premises or notice of a rent increase that is shorter than the time period the lease provides
for the tenant to give notice of an intention to quit the premises.
new text end

new text begin Subd. 4. new text end

new text begin No waiver. new text end

new text begin The requirements of this section may not be waived or modified
by the parties to a residential lease. Any provision, whether oral or written, of a lease or
other agreement by which any provision of this section is waived by a tenant is contrary to
public policy and void.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to leases entered into or renewed on or after that date.
new text end

Sec. 59.

Minnesota Statutes 2018, section 504B.206, subdivision 3, is amended to read:

Subd. 3.

Liability for rent; termination of tenancy.

(a) A tenant who is a sole tenant
and is terminating a lease under subdivision 1 is responsible for the rent payment for the
full month in which the tenancy terminates. The tenant forfeits all claims for the return of
the security deposit under section 504B.178 and is relieved of any other contractual obligation
for payment of rent or any other charges for the remaining term of the lease, except as
provided in this section. In a sole tenancy, the tenancy terminates on the date specified in
the notice provided to the landlord as required under subdivision 1.

(b) In a tenancy with multiple tenants, one of whom is terminating the lease under
subdivision 1, any lease governing all tenants is terminated at the deleted text begin latter deleted text end new text begin later new text end of the end of
the month or the end of the rent interval in which one tenant terminates the lease under
subdivision 1. All tenants are responsible for the rent payment for the full month in which
the tenancy terminates. Upon termination, all tenants forfeit all claims for the return of the
security deposit under section 504B.178 and are relieved of any other contractual obligation
for payment of rent or any other charges for the remaining term of the lease, except as
provided in this section. Any tenant whose tenancy was terminated under this paragraph
may reapply to enter into a new lease with the landlord.

(c) This section does not affect a tenant's liability for delinquent, unpaid rent or other
amounts owed to the landlord before the lease was terminated by the tenant under this
section.

Sec. 60. new text begin ITASCA COUNTY; CERTAIN FEES MAY BE REGULATED.
new text end

new text begin Itasca County may adopt an ordinance to regulate license fee increases that may be
imposed on a homeowner by the owner or licensor of the underlying land on which the
house is located. If the county adopts an ordinance under this section, the ordinance must
limit any license fee increase to no more than ten percent of the license fee charged in the
preceding 12-month period. In addition, the ordinance must not allow more than one increase
in a 12-month period. "License fee" means a fee paid by a licensee pursuant to a license
agreement granting the licensee permission to use, enter, or occupy an owner's or licensor's
property. The ordinance adopted may only apply to fees imposed pursuant to license
agreements entered into or renewed on or after the effective date of the ordinance.
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

Sec. 61. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 327C.095, subdivision 8, new text end new text begin is repealed.
new text end

ARTICLE 7

BROADBAND DEVELOPMENT

Section 1. new text begin BROADBAND DEVELOPMENT APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2020" and "2021" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively.
"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium"
is fiscal years 2020 and 2021.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2020 new text end		new text begin 2021 new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin $ new text end

new text begin 20,250,000 new text end

new text begin $ new text end

new text begin 20,250,000 new text end

new text begin (a) $250,000 each year is for the Broadband
Development Office.
new text end

new text begin (b) $20,000,000 in fiscal year 2020 and
$20,000,000 in fiscal year 2021 are
appropriated from the general fund to the
commissioner of employment and economic
development for deposit in the
border-to-border broadband fund account
under Minnesota Statutes, section 116J.396.
The appropriation is onetime and must be used
for grants and the purposes specified under
Minnesota Statutes, section 116J.395.
new text end

APPENDIX

Repealed Minnesota Statutes: 19-5229

41A.15 DEFINITIONS.

Subd. 2a.

Biobased content.

"Biobased content" means a chemical, polymer, monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least 51 percent as determined by testing representative samples using American Society for Testing and Materials specification D6866.

Subd. 2b.

Biobased formulated product.

"Biobased formulated product" means a product that is not sold primarily for use as food, feed, or fuel and that has a biobased content percentage of at least ten percent as determined by testing representative samples using American Society for Testing and Materials specification D6866, or that contains a biobased chemical constituent that displaces a known hazardous or toxic constituent previously used in the product formulation.

327C.095 PARK CLOSINGS.

Subd. 8.

Required filing of notice.

Subdivisions 6 and 7 apply to manufactured home parks upon which notice has been recorded with the county recorder or registrar of titles in the county where the manufactured home park is located. Any person may file the notice required under this subdivision with the county recorder or registrar of titles. The notice must be in the following form:

"MANUFACTURED HOME PARK NOTICE

THIS PROPERTY IS USED AS A MANUFACTURED HOME PARK

.......................................

PARK OWNER

.......................................

.......................................

.......................................

LEGAL DESCRIPTION OF PARK

.......................................

COOPERATIVE ASSOCIATION (IF APPLICABLE)"