1.1                          A bill for an act 
  1.2             relating to agriculture; establishing a program to 
  1.3             develop cooperatively owned livestock processing 
  1.4             plants; appropriating money; proposing coding for new 
  1.5             law in Minnesota Statutes, chapter 41B. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [41B.0461] [LIVESTOCK PROCESSING PLANT 
  1.8   DEVELOPMENT PROGRAM.] 
  1.9      Subdivision 1.  [LIVESTOCK PROCESSING PLANT LOAN AND GRANT 
  1.10  PROGRAM.] The authority may establish, adopt rules for, and 
  1.11  implement a livestock processing plant loan and grant program to 
  1.12  provide capital for cooperatively owned livestock slaughter and 
  1.13  processing plants.  The program may provide for:  (1) secured or 
  1.14  unsecured loans, loan participations, and loan guarantees with 
  1.15  respect to real or personal property comprising all or part of a 
  1.16  livestock processing plant; and (2) the payment of costs 
  1.17  incurred by the authority to establish and administer the 
  1.18  program. 
  1.19     Subd. 2.  [LIVESTOCK PROCESSING PLANT DEVELOPMENT FUND.] A 
  1.20  livestock processing plant development fund is established in 
  1.21  the state treasury.  All repayments of financial assistance 
  1.22  granted under subdivision 1, including principal and interest, 
  1.23  must be deposited into this fund.  Interest earned on money in 
  1.24  the fund accrues to the fund.  Money in the fund is appropriated 
  1.25  to the commissioner of agriculture for purposes of the livestock 
  2.1   processing plant loan program, including costs incurred by the 
  2.2   authority to establish and administer the program. 
  2.3      Subd. 3.  [PROGRAM REQUIREMENTS.] The requirements in this 
  2.4   subdivision apply to the livestock processing plant loan and 
  2.5   grant program. 
  2.6      (a) A cooperative organized under chapter 308A, all of 
  2.7   whose members are natural persons residing in Minnesota, may 
  2.8   participate in the program and is not required to meet the 
  2.9   eligibility requirements of section 41B.03, subdivision 1. 
  2.10     (b) A cooperative wishing to participate may be required to 
  2.11  pay a reasonable nonrefundable application fee established by 
  2.12  the authority under section 41B.07.  Application fees received 
  2.13  by the authority must be deposited in the livestock processing 
  2.14  plant development fund. 
  2.15     (c) The total assistance provided to a livestock processing 
  2.16  plant must not exceed $500,000. 
  2.17     (d) The interest rate on loans and loan participations made 
  2.18  by the authority from appropriated funds must not exceed two 
  2.19  percent.  The interest payable on loans and loan participations 
  2.20  funded from other sources may be at a rate determined by the 
  2.21  authority. 
  2.22     (e) The outstanding balance of a loan made from 
  2.23  appropriated funds to a livestock processing plant under this 
  2.24  program must be forgiven after the plant has been in operation 
  2.25  for a period of 60 full months. 
  2.26     Sec. 2.  [41B.0462] [PRODUCER PAYMENTS FOR LIVESTOCK 
  2.27  PROCESSING PLANTS.] 
  2.28     (a) The commissioner shall make cash payments to the 
  2.29  operator of a livestock processing plant established under 
  2.30  section 41B.0461 and located in this state.  The payment is ten 
  2.31  cents for each pound of eligible pork or beef meat produced.  
  2.32  The payment is five cents for each pound of eligible poultry 
  2.33  meat produced.  To be eligible for the producer payment: 
  2.34     (1) the meat must be intended for human consumption; 
  2.35     (2) the livestock must be marketed by a cooperative 
  2.36  association organized under chapter 308A; 
  3.1      (3) the livestock must be raised to market weight on a 
  3.2   Minnesota farm; and 
  3.3      (4) the meat must be produced during the first 60 months 
  3.4   after the processing plant begins operation. 
  3.5      (b) Total producer payments to all eligible operators of 
  3.6   livestock processing plants must not exceed $....... in any 
  3.7   fiscal year or $....... in any fiscal quarter.  Application for 
  3.8   producer payments must be made on forms provided by the 
  3.9   commissioner.  Payments must be made quarterly on a schedule 
  3.10  established by the commissioner. 
  3.11     (c) If the total amount for which all operators of 
  3.12  livestock processing plants are eligible in a fiscal quarter 
  3.13  exceeds the amount available for payments, the commissioner 
  3.14  shall make payments in the order in which the plant production 
  3.15  capacity covered by the claims began operation. 
  3.16     (d) All producer payments made to operators of livestock 
  3.17  processing plants under this section must be used to satisfy the 
  3.18  financial obligations of the plant. 
  3.19     Sec. 3.  [APPROPRIATION.] 
  3.20     $....... is appropriated from the general fund to the 
  3.21  commissioner of agriculture.  Of this amount, $....... is for 
  3.22  administration and loans under the livestock processing plant 
  3.23  loan and grant program in section 1 and $....... is for producer 
  3.24  payments under section 2.  This appropriation is available until 
  3.25  June 30, 2002. 
  3.26     Sec. 4.  [EFFECTIVE DATE.] 
  3.27     Sections 1 to 3 are effective the day following final 
  3.28  enactment.