1.1                          A bill for an act 
  1.2             relating to agriculture; establishing a grant program 
  1.3             for livestock and dairy processing and marketing 
  1.4             ventures; appropriating money; proposing coding for 
  1.5             new law in Minnesota Statutes, chapter 41B. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [41B.047] [VALUE-ADDED AGRICULTURAL LIVESTOCK 
  1.8   PROCESSING AND MARKETING GRANT PROGRAM.] 
  1.9      Subdivision 1.  [DEFINITIONS.] For purposes of this 
  1.10  section, "livestock or dairy processing facility" means land, 
  1.11  buildings, structures, fixtures, and improvements located or to 
  1.12  be located in Minnesota and used or operated primarily for the 
  1.13  processing or production of marketable products from 
  1.14  agricultural livestock raised in Minnesota or dairy commodities 
  1.15  produced in Minnesota.  
  1.16     Subd. 2.  [ESTABLISHMENT.] The authority shall establish 
  1.17  and implement a value-added agricultural livestock and dairy 
  1.18  processing and marketing grant program to help farmers finance 
  1.19  and operate livestock and dairy processing facilities and 
  1.20  marketing activities related to the sale and distribution of 
  1.21  processed livestock and dairy products.  
  1.22     Subd. 3.  [GRANT FUND.] There is established in the state 
  1.23  treasury a value-added agricultural livestock and dairy 
  1.24  processing and marketing fund into which appropriations for the 
  1.25  purposes of this section must be deposited.  All repayments or 
  2.1   forfeitures under the program, and any additional grant, 
  2.2   donation, or appropriated money from public or nonpublic 
  2.3   sources, must be deposited into this fund.  Interest earned on 
  2.4   money in the fund accrues to the fund, and money in the fund is 
  2.5   appropriated to the commissioner for purposes of the value-added 
  2.6   agricultural livestock and dairy processing and marketing grant 
  2.7   program, including costs incurred by the authority to establish 
  2.8   and administer the program.  
  2.9      Subd. 4.  [ELIGIBILITY.] To be eligible for this program a 
  2.10  grantee must:  
  2.11     (1) be a cooperative organized under chapter 308A; 
  2.12     (2) certify that all of the control and financial 
  2.13  investment in the cooperative is from farmers residing in 
  2.14  Minnesota and actively engaged in livestock or dairy production; 
  2.15     (3) be operated primarily for the processing of livestock 
  2.16  or dairy produced in Minnesota; 
  2.17     (4) receive livestock or dairy produced primarily by 
  2.18  shareholders or members of the cooperative; and 
  2.19     (5) must have no direct or indirect involvement in the 
  2.20  production of livestock and dairy.  
  2.21     Subd. 5.  [GRANT AMOUNTS.] (a) An eligible applicant may 
  2.22  receive no more than a lifetime total of $250,000 in grants 
  2.23  under this section.  
  2.24     (b) The commissioner may receive applications from and make 
  2.25  grants up to the following amounts to eligible cooperatives:  
  2.26     (1) at the exploratory stage of organization and 
  2.27  development, $30,000; 
  2.28     (2) at the planning stage, $50,000; and 
  2.29     (3) at the implementation stage, $170,000.  
  2.30     Sec. 2.  [APPROPRIATIONS.] 
  2.31     For the biennium ending June 30, 1999, $5,000,000 is 
  2.32  appropriated from the general fund to the commissioner of 
  2.33  agriculture to make grants under section 1, and $75,000 is 
  2.34  appropriated from the general fund to the agricultural 
  2.35  utilization research institute for employment of a specialist in 
  2.36  new cooperative livestock processing and marketing ventures.