1.1 	A bill for an act
1.2 	relating to agriculture; establishing a budget for the Department of Agriculture, 
1.3 	the Board of Animal Health, the Agricultural Utilization Research Institute, and 
1.4 	the Minnesota Housing Finance Agency; modifying programs;amending Minnesota 
1.5 	Statutes 2018, sections 17.041, subdivision 1; 18B.34, subdivision 5; 18C.425, 
1.6 	subdivision 6; 18C.70, subdivision 5; 18C.71, subdivision 4; 18C.80, subdivision 
1.7 	2; 18K.02, subdivision 3; 18K.06; 28A.16; 41A.15, subdivision 10, by adding a 
1.8 	subdivision; 41A.16, subdivisions 1, 2, 4; 41A.17, subdivisions 1, 2, 3; 41A.18, 
1.9 	subdivisions 1, 2, 3; 41B.055, subdivision 4; 116.06, by adding a subdivision; 
1.10 	116.07, subdivisions 7, 7d; 223.16, subdivisions 2a, 4; 223.17, subdivisions 3, 4, 
1.11 	5, 6, by adding subdivisions; 223.177, subdivisions 2, 3, 8; 232.21, by adding 
1.12 	subdivisions; 232.22, subdivisions 3, 4; 232.23, subdivision 3; 232.24, subdivisions 
1.13 	1, 2; 299D.085, by adding a subdivision; 326B.815, subdivision 1; 327.31, by 
1.14 	adding a subdivision; 327B.041; 327C.095, subdivisions 4, 6, 12, 13, by adding 
1.15 	a subdivision; 428A.11, subdivisions 4, 6; 462A.2035, subdivisions 1a, 1b; 
1.16 	462A.209, subdivision 8; 462A.22, subdivision 9; 462A.24; 462A.33, subdivisions 
1.17 	1, 2, 3; 462A.37, subdivision 2; 462A.38, subdivision 1; 474A.02, by adding 
1.18 	subdivisions; 474A.03, subdivision 1; 474A.061, subdivisions 1, 2a, by adding a 
1.19 	subdivision; 474A.091, subdivisions 2, 3; proposing coding for new law in 
1.20 	Minnesota Statutes, chapters 41B; 327.
1.21 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.22 	ARTICLE 1
1.23 	AGRICULTURE APPROPRIATIONS

1.24	Section 1. AGRICULTURE APPROPRIATIONS.
 	
1.25 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.26 	and for the purposes specified in this act. The appropriations are from the general fund, or 
1.27 	another named fund, and are available for the fiscal years indicated for each purpose. The 
1.28 	figures "2020" and "2021" used in this act mean that the appropriations listed under them 
1.29 	are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. "The 
2.1 	first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" is 
2.2 	fiscal years 2020 and 2021.

2.3				APPROPRIATIONS
	
2.4				Available for the Year
	
2.5				Ending June 30
	
2.6					2020
		2021

2.7	Sec. 2. DEPARTMENT OF AGRICULTURE

2.8	Subdivision 1.Total Appropriation
 	$
	54,704,000
	$
	49,602,000

2.9	Appropriations by Fund
	
2.10		2020
	2021
	
2.11	General
	54,305,000
	49,203,000
	
2.12	Remediation
	399,000
	399,000
	
2.13 	The amounts that may be spent for each 
2.14 	purpose are specified in the following 
2.15 	subdivisions.

2.16	Subd. 2.Protection Services

2.17	Appropriations by Fund
	
2.18		2020
	2021
	
2.19	General
	16,878,000
	16,878,000
	
2.20	Remediation
	399,000
	399,000
	
2.21 	(a) $399,000 the first year and $399,000 the 
2.22 	second year are from the remediation fund for 
2.23 	administrative funding for the voluntary 
2.24 	cleanup program.
2.25 	(b) $175,000 the first year and $175,000 the 
2.26 	second year are for compensation for 
2.27 	destroyed or crippled livestock under 
2.28 	Minnesota Statutes, section 3.737. The 
2.29 	appropriation for fiscal year 2020 may be 
2.30 	spent to compensate for livestock that were 
2.31 	destroyed or crippled during fiscal year 2019. 
2.32 	If the amount for fiscal year 2020 is 
2.33 	insufficient, the amount in fiscal year 2021 is 
2.34 	available in fiscal year 2020. The 
2.35 	commissioner may use up to $5,000 each year 
3.1 	to reimburse expenses incurred by university 
3.2 	extension agents to provide fair market values 
3.3 	of destroyed or crippled livestock.
3.4 	(c) $155,000 the first year and $155,000 the 
3.5 	second year are for compensation for crop 
3.6 	damage under Minnesota Statutes, section 
3.7 	3.7371. If the amount in the first year is 
3.8 	insufficient, the amount in the second year is 
3.9 	available in the first year. The commissioner 
3.10 	may use up to $30,000 of the appropriation 
3.11 	each year to reimburse expenses incurred by 
3.12 	the commissioner or the commissioner's 
3.13 	approved agent to investigate and resolve 
3.14 	claims.
3.15 	If the commissioner determines that claims 
3.16 	made under Minnesota Statutes, section 3.737 
3.17 	or 3.7371, are unusually high, amounts 
3.18 	appropriated for either program may be 
3.19 	transferred to the appropriation for the other 
3.20 	program.

3.21
3.22	Subd. 3.Agricultural Marketing and 
Development
 		3,918,000
		3,918,000
	
3.23 	(a) $186,000 the first year and $186,000 the 
3.24 	second year are for transfer to the Minnesota 
3.25 	grown account and may be used as grants for 
3.26 	Minnesota grown promotion under Minnesota 
3.27 	Statutes, section 17.102. Grants may be made 
3.28 	for one year. Notwithstanding Minnesota 
3.29 	Statutes, section 16A.28, the appropriations 
3.30 	encumbered under contract on or before June 
3.31 	30, 2021, for Minnesota grown grants in this 
3.32 	paragraph are available until June 30, 2023.
3.33 	(b) $706,000 the first year and $706,000 the 
3.34 	second year are for continuation of the dairy 
3.35 	development and profitability enhancement 
4.1 	and dairy business planning grant programs 
4.2 	established under Laws 1997, chapter 216, 
4.3 	section 7, subdivision 2, and Laws 2001, First 
4.4 	Special Session chapter 2, section 9, 
4.5 	subdivision 2. Of the amount appropriated in 
4.6 	this paragraph, $72,000 each year is onetime. 
4.7 	The commissioner may allocate the available 
4.8 	sums among permissible activities, including 
4.9 	efforts to improve the quality of milk produced 
4.10 	in the state, in the proportions that the 
4.11 	commissioner deems most beneficial to 
4.12 	Minnesota's dairy farmers. The commissioner 
4.13 	must submit a detailed accomplishment report 
4.14 	and a work plan detailing future plans for, and 
4.15 	anticipated accomplishments from, 
4.16 	expenditures under this program to the chairs 
4.17 	and ranking minority members of the 
4.18 	legislative committees with jurisdiction over 
4.19 	agriculture policy and finance on or before the 
4.20 	start of each fiscal year. If significant changes 
4.21 	are made to the plans in the course of the year, 
4.22 	the commissioner must notify the chairs and 
4.23 	ranking minority members.
4.24 	(c) The commissioner may use funds 
4.25 	appropriated in this subdivision for annual 
4.26 	cost-share payments to resident farmers or 
4.27 	entities that sell, process, or package 
4.28 	agricultural products in this state for the costs 
4.29 	of organic certification. The commissioner 
4.30 	may allocate these funds for assistance for 
4.31 	persons transitioning from conventional to 
4.32 	organic agriculture.

5.1
5.2	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		26,100,000
		21,100,000
	
5.3 	(a) $9,300,000 the first year and $9,300,000 
5.4 	the second year are for transfer to the 
5.5 	agriculture research, education, extension, and 
5.6 	technology transfer account under Minnesota 
5.7 	Statutes, section 41A.14, subdivision 3. Of 
5.8 	these amounts:
5.9 	(1) $600,000 the first year and $600,000 the 
5.10 	second year are for the Minnesota Agricultural 
5.11 	Experiment Station's agriculture rapid 
5.12 	response fund under Minnesota Statutes, 
5.13 	section 41A.14, subdivision 1, clause (2);
5.14 	(2) $2,000,000 the first year and $2,000,000 
5.15 	the second year are for grants to the Minnesota 
5.16 	Agriculture Education Leadership Council to 
5.17 	enhance agricultural education with priority 
5.18 	given to Farm Business Management 
5.19 	challenge grants;
5.20 	(3) $350,000 the first year and $350,000 the 
5.21 	second year are for potato breeding;
5.22 	(4) $450,000 the first year and $450,000 the 
5.23 	second year are for the cultivated wild rice 
5.24 	breeding project at the North Central Research 
5.25 	and Outreach Center to include a tenure track 
5.26 	and research associate plant breeder; and
5.27 	(5) $2,500,000 the first year and $2,500,000 
5.28 	the second year are for innovative soybean 
5.29 	processing and research. These appropriations 
5.30 	are onetime.
5.31 	The commissioner shall transfer the remaining 
5.32 	funds in this appropriation each year to the 
5.33 	Board of Regents of the University of 
5.34 	Minnesota for purposes of Minnesota Statutes, 
6.1 	section 41A.14. Included in this amount is 
6.2 	money for research on avian influenza, 
6.3 	including prevention measures that can be 
6.4 	taken.
6.5 	To the extent practicable, funds expended 
6.6 	under Minnesota Statutes, section 41A.14, 
6.7 	subdivision 1, clauses (1) to (5), must 
6.8 	supplement and not supplant existing sources 
6.9 	and levels of funding. The commissioner may 
6.10 	use up to one percent of this appropriation for 
6.11 	costs incurred to administer the program.
6.12 	The base budget for the agriculture research, 
6.13 	education, extension, and technology transfer 
6.14 	account is $9,300,000 for fiscal years 2022 
6.15 	and 2023.
6.16 	(b) $16,775,000 the first year and $11,775,000 
6.17 	the second year are for the agricultural growth, 
6.18 	research, and innovation program in 
6.19 	Minnesota Statutes, section 41A.12. Of these 
6.20 	amounts:
6.21 	(1) $1,000,000 the first year and $1,000,000 
6.22 	the second year are for distribution in equal 
6.23 	amounts to each of the state's county fairs to 
6.24 	preserve and promote Minnesota agriculture;
6.25 	(2) $2,500,000 the first year and $2,500,000 
6.26 	the second year are for incentive payments 
6.27 	under Minnesota Statutes, sections 41A.16, 
6.28 	41A.17, and 41A.18. Notwithstanding 
6.29 	Minnesota Statutes, section 16A.28, the first 
6.30 	year appropriation is available until June 30, 
6.31 	2021, and the second year appropriation is 
6.32 	available until June 30, 2022. If this 
6.33 	appropriation exceeds the total amount for 
6.34 	which all producers are eligible in a fiscal 
7.1 	year, the balance of the appropriation is 
7.2 	available for the agricultural growth, research, 
7.3 	and innovation program. If the total amount 
7.4 	for which all producers are eligible in a quarter 
7.5 	exceeds the amount available for payments, 
7.6 	the commissioner shall make the payments on 
7.7 	a pro rata basis;
7.8 	(3) $500,000 the first year and $500,000 the 
7.9 	second year are for grants to motor fuel 
7.10 	wholesalers and retail motor fueling station 
7.11 	operators to install the equipment necessary 
7.12 	to store or dispense biofuels to the public to 
7.13 	meet the biofuel requirement goals established 
7.14 	under Minnesota Statutes, section 239.7911;
7.15 	(4) $2,000,000 the first year and $2,000,000 
7.16 	the second year are for livestock investment 
7.17 	grants under Minnesota Statutes, section 
7.18 	17.118;
7.19 	(5) $3,500,000 the first year and $3,500,000 
7.20 	the second year are for value-added grants. 
7.21 	The commissioner may use up to $2,000,000 
7.22 	per year of the funds to award value-added 
7.23 	agriculture grants of between $200,000 and 
7.24 	$1,000,000 per grant for new or expanding 
7.25 	agricultural production or processing facilities 
7.26 	that provide significant economic benefit to 
7.27 	the region;
7.28 	(6) $600,000 the first year and $600,000 the 
7.29 	second year are for Farm Business 
7.30 	Management tuition assistance;
7.31 	(7) $500,000 the first year and $500,000 the 
7.32 	second year are for new market development 
7.33 	grants;
8.1 	(8) $2,000,000 the first year is for the dairy 
8.2 	producer margin coverage premium assistance 
8.3 	program under section 5; and
8.4 	(9) $3,000,000 the first year is for dairy 
8.5 	modernization and innovation grants, and for 
8.6 	buying down interest costs under the dairy 
8.7 	modernization and innovation loan program 
8.8 	under Minnesota Statutes, section 41B.0455.
8.9 	The commissioner may allocate the remaining 
8.10 	amounts each year among the following areas: 
8.11 	developing new markets for Minnesota 
8.12 	farmers by providing more fruits, vegetables, 
8.13 	meat, grain, and dairy for Minnesota school 
8.14 	children; grants for urban youth agricultural 
8.15 	education or urban agriculture community 
8.16 	development; the good food access program 
8.17 	under Minnesota Statutes, section 17.1017; 
8.18 	facilitating the start-up, modernization, or 
8.19 	expansion of other beginning and transitioning 
8.20 	farms including by providing loans under 
8.21 	Minnesota Statutes, section 41B.056; crop 
8.22 	research grants; development or expansion of 
8.23 	food hubs and other alternative 
8.24 	community-based food distribution systems; 
8.25 	and good agricultural practices and good 
8.26 	handling practices certification assistance.
8.27 	The commissioner may use up to 3.5 percent 
8.28 	of this appropriation for costs incurred to 
8.29 	administer the program.
8.30 	The appropriation in paragraph (b), clauses 
8.31 	(8) and (9), is onetime. Any unencumbered 
8.32 	balance does not cancel at the end of the first 
8.33 	year and is available for the second year. 
8.34 	Notwithstanding Minnesota Statutes, section 
8.35 	16A.28, appropriations encumbered under 
9.1 	contract on or before June 30, 2021, for 
9.2 	agricultural growth, research, and innovation 
9.3 	grants are available until June 30, 2022.
9.4 	The base budget for the agricultural growth, 
9.5 	research, and innovation program is 
9.6 	$14,710,000 for fiscal years 2022 and 2023, 
9.7 	and includes funding for incentive payments 
9.8 	under Minnesota Statutes, sections 41A.16, 
9.9 	41A.17, 41A.18, and 41A.20.
9.10 	The commissioner must consult with the 
9.11 	commissioner of transportation, the 
9.12 	commissioner of administration, and local 
9.13 	units of government to identify at least ten 
9.14 	parcels of publicly owned land that are suitable 
9.15 	for urban agriculture.
9.16 	(c) $25,000 the first year and $25,000 the 
9.17 	second year are for grants to the Southern 
9.18 	Minnesota Initiative Foundation to promote 
9.19 	local foods through an annual event that raises 
9.20 	public awareness of local foods and connects 
9.21 	local food producers and processors with 
9.22 	potential buyers. These appropriations are 
9.23 	onetime.

9.24
9.25	Subd. 5.Administration and Financial 
Assistance
 		7,409,000
		7,307,000
	
9.26 	(a) $474,000 the first year and $474,000 the 
9.27 	second year are for payments to county and 
9.28 	district agricultural societies and associations 
9.29 	under Minnesota Statutes, section 38.02, 
9.30 	subdivision 1. Aid payments to county and 
9.31 	district agricultural societies and associations 
9.32 	shall be disbursed no later than July 15 of each 
9.33 	year. These payments are the amount of aid 
9.34 	from the state for an annual fair held in the 
9.35 	previous calendar year.
10.1 	(b) $2,000 the first year is for a grant to the 
10.2 	Minnesota State Poultry Association. This is 
10.3 	a onetime appropriation, and is available until 
10.4 	June 30, 2021.
10.5 	(c) $108,000 the first year and $108,000 the 
10.6 	second year are for annual grants to the 
10.7 	Minnesota Turf Seed Council for basic and 
10.8 	applied research on: (1) the improved 
10.9 	production of forage and turf seed related to 
10.10 	new and improved varieties; and (2) native 
10.11 	plants, including plant breeding, nutrient 
10.12 	management, pest management, disease 
10.13 	management, yield, and viability. The grant 
10.14 	recipient may subcontract with a qualified 
10.15 	third party for some or all of the basic or 
10.16 	applied research. Any unencumbered balance 
10.17 	does not cancel at the end of the first year and 
10.18 	is available for the second year. These are 
10.19 	onetime appropriations.
10.20 	(d) $18,000 the first year and $18,000 the 
10.21 	second year are for grants to the Minnesota 
10.22 	Livestock Breeders Association. These are 
10.23 	onetime appropriations.
10.24 	(e) $47,000 the first year and $47,000 the 
10.25 	second year are for the Northern Crops 
10.26 	Institute. These appropriations may be spent 
10.27 	to purchase equipment. These are onetime 
10.28 	appropriations.
10.29 	(f) $267,000 the first year and $267,000 the 
10.30 	second year are for farm advocate services. 
10.31 	Of the amount appropriated in this paragraph, 
10.32 	$47,000 each year is onetime.
10.33 	(g) $17,000 the first year and $17,000 the 
10.34 	second year are for grants to the Minnesota 
11.1 	Horticultural Society. These are onetime 
11.2 	appropriations.
11.3 	(h) $238,000 the first year and $238,000 the 
11.4 	second year are for transfer to the Board of 
11.5 	Trustees of the Minnesota State Colleges and 
11.6 	Universities for statewide mental health 
11.7 	counseling support to farm families and 
11.8 	business operators. South Central College shall 
11.9 	serve as the fiscal agent. Of the amount 
11.10 	appropriated in this paragraph, $125,000 each 
11.11 	year is onetime.
11.12 	(i) $550,000 the first year and $550,000 the 
11.13 	second year are for grants to Second Harvest 
11.14 	Heartland on behalf of Minnesota's six 
11.15 	Feeding America food banks for the purchase 
11.16 	of milk for distribution to Minnesota's food 
11.17 	shelves and other charitable organizations that 
11.18 	are eligible to receive food from the food 
11.19 	banks. Milk purchased under the grants must 
11.20 	be acquired from Minnesota milk processors 
11.21 	and based on low-cost bids. The milk must be 
11.22 	allocated to each Feeding America food bank 
11.23 	serving Minnesota according to the formula 
11.24 	used in the distribution of United States 
11.25 	Department of Agriculture commodities under 
11.26 	The Emergency Food Assistance Program 
11.27 	(TEFAP). Second Harvest Heartland must 
11.28 	submit quarterly reports to the commissioner 
11.29 	on forms prescribed by the commissioner. The 
11.30 	reports must include, but are not limited to, 
11.31 	information on the expenditure of funds, the 
11.32 	amount of milk purchased, and the 
11.33 	organizations to which the milk was 
11.34 	distributed. Second Harvest Heartland may 
11.35 	enter into contracts or agreements with food 
12.1 	banks for shared funding or reimbursement of 
12.2 	the direct purchase of milk. Each food bank 
12.3 	receiving money from this appropriation may 
12.4 	use up to two percent of the grant for 
12.5 	administrative expenses. Any unencumbered 
12.6 	balance does not cancel at the end of the first 
12.7 	year and is available for the second year.
12.8 	(j) $1,100,000 the first year and $1,100,000 
12.9 	the second year are for grants to Second 
12.10 	Harvest Heartland on behalf of the six Feeding 
12.11 	America food banks that serve Minnesota to 
12.12 	compensate agricultural producers and 
12.13 	processors for costs incurred to harvest and 
12.14 	package for transfer surplus fruits, vegetables, 
12.15 	and other agricultural commodities that would 
12.16 	otherwise go unharvested, be discarded, or 
12.17 	sold in a secondary market. Surplus 
12.18 	commodities must be distributed statewide to 
12.19 	food shelves and other charitable organizations 
12.20 	that are eligible to receive food from the food 
12.21 	banks. Surplus food acquired under this 
12.22 	appropriation must be from Minnesota 
12.23 	producers and processors. Second Harvest 
12.24 	Heartland must report in the form prescribed 
12.25 	by the commissioner. Second Harvest 
12.26 	Heartland may use up to 15 percent of each 
12.27 	grant for matching administrative and 
12.28 	transportation expenses. Any unencumbered 
12.29 	balance does not cancel at the end of the first 
12.30 	year and is available for the second year.
12.31 	(k) $50,000 the first year and $50,000 the 
12.32 	second year are for grants to the Center for 
12.33 	Rural Policy and Development. These are 
12.34 	onetime appropriations.
13.1 	(l) $250,000 the first year and $250,000 the 
13.2 	second year are for grants to the Minnesota 
13.3 	Agricultural Education and Leadership 
13.4 	Council for programs of the council under 
13.5 	Minnesota Statutes, chapter 41D.
13.6 	(m) $100,000 the first year is for a grant to 
13.7 	Greater Mankato Growth, Inc. for assistance 
13.8 	to agricultural-related businesses to promote 
13.9 	jobs, innovation, and development of a 
13.10 	synergy. Grant recipients shall report to the 
13.11 	commissioner by February 1 of each year, and 
13.12 	include information on the number of 
13.13 	customers served in each county; the number 
13.14 	of businesses started, stabilized, or expanded; 
13.15 	the number of jobs created and retained; and 
13.16 	business success rates in each county. By April 
13.17 	1 of each year, the commissioner shall report 
13.18 	the information submitted by grant recipients 
13.19 	to the chairs of the standing committees of the 
13.20 	house of representatives and the senate having 
13.21 	jurisdiction over agriculture and rural 
13.22 	development issues. This is a onetime 
13.23 	appropriation.
13.24 	(n) The commissioner shall continue to 
13.25 	increase connections with ethnic minority and 
13.26 	immigrant farmers to farming opportunities 
13.27 	and farming programs throughout the state.

13.28	Sec. 3. BOARD OF ANIMAL HEALTH
 	$
	5,477,000
	$
	5,477,000

13.29
13.30	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	3,895,000
	$
	3,895,000

13.31 	Sec. 5. DAIRY PRODUCER MARGIN COVERAGE PREMIUM  ASSISTANCE 
13.32 	PROGRAM.
 13.33 		Subdivision 1.Program. The commissioner must administer a dairy producer margin 
13.34 	coverage premium assistance program for premiums paid by Minnesota dairy producers 
14.1 	participating in the federal dairy margin coverage program authorized in the Agriculture 
14.2 	Improvement Act of 2018.
14.3 		Subd. 2.Eligibility. A dairy producer who participates in the federal dairy margin 
14.4 	coverage program and satisfies the requirements in this section is eligible to receive financial 
14.5 	assistance from the commissioner under this section.
14.6 		Subd. 3.Payment rates. The commissioner must reimburse an eligible producer at a 
14.7 	rate up to six cents per hundredweight of milk up to the first 5,000,000 pounds of milk 
14.8 	enrolled in the federal dairy margin coverage program. The commissioner shall determine 
14.9 	the payment rate under this subdivision by dividing available funding by the number of 
14.10 	eligible applicants.
14.11 		Subd. 4.Procedure. A dairy producer must submit a completed application to the 
14.12 	commissioner in a form required by the commissioner. As part of the application, the dairy 
14.13 	producer must submit proof of participation in the federal dairy margin coverage program 
14.14 	in the form of a valid premium payment receipt or other documentation as approved by the 
14.15 	commissioner.

14.16 	ARTICLE 2
14.17 	AGRICULTURE STATUTORY CHANGES

14.18 	Section 1. Minnesota Statutes 2018, section 17.041, subdivision 1, is amended to read:
14.19 		Subdivision 1.Establishment; appropriation. An agricultural emergency account is 
14.20 	established in the agricultural fund. Money in the account, including interest, is appropriated 
14.21 	to the commissioner for emergency response and preparedness activities for agricultural 
14.22 	emergencies affecting producers of livestock, poultry, crops, or other agricultural products. 
14.23 	Eligible uses include, but are not limited to, agency costs directly attributed to responding 
14.24 	to agricultural emergencies and purchasing necessary equipment and reimbursing costs 
14.25 	incurred by local units of government that are not eligible for reimbursement from other 
14.26 	sources.

14.27 	Sec. 2. Minnesota Statutes 2018, section 18B.34, subdivision 5, is amended to read:
14.28 		Subd. 5.Fees. (a) A person initially applying for or renewing a noncommercial applicator 
14.29 	license must pay a nonrefundable application fee of $50, except an applicant who is uses 
14.30 	pesticides in the course of performing official duties as: (1) a government employee; (2) a 
14.31 	contractor providing rest area custodial services for the commissioner of transportation; or
15.1 	(3) a Conservation Corps Minnesota employee who uses pesticides in the course of 
15.2 	performing official duties must pay a nonrefundable application fee of $10.
15.3 	(b) A license renewal application received after March 1 in the year for which the license 
15.4 	is to be issued is subject to a penalty fee of 50 percent of the application fee. The penalty 
15.5 	fee must be paid before the renewal license may be issued.
15.6 	(c) An application for a duplicate noncommercial applicator license must be accompanied 
15.7 	by a nonrefundable application fee of $10.

15.8 	Sec. 3. Minnesota Statutes 2018, section 18C.425, subdivision 6, is amended to read:
15.9 		Subd. 6.Payment of inspection fee. (a) The person who registers and distributes in the 
15.10 	state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall 
15.11 	pay the inspection fee to the commissioner.
15.12 	(b) The person licensed under section 18C.415 who distributes a fertilizer to a person 
15.13 	not required to be so licensed shall pay the inspection fee to the commissioner, except as 
15.14 	exempted under section 18C.421, subdivision 1, paragraph (b).
15.15 	(c) The person responsible for payment of the inspection fees for fertilizers, soil 
15.16 	amendments, or plant amendments sold and used in this state must pay an inspection fee of 
15.17 	39 cents per ton, and until June 30, 2019 2029, an additional 40 cents per ton, of fertilizer, 
15.18 	soil amendment, and plant amendment sold or distributed in this state, with a minimum of 
15.19 	$10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner must deposit 
15.20 	all revenue from the additional 40 cents per ton fee in the agricultural fertilizer research and 
15.21 	education account in section 18C.80. Products sold or distributed to manufacturers or 
15.22 	exchanged between them are exempt from the inspection fee imposed by this subdivision 
15.23 	if the products are used exclusively for manufacturing purposes.
15.24 	(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant 
15.25 	amendment, or soil amendment distribution amounts and inspection fees paid for a period 
15.26 	of three years.

15.27 	Sec. 4. Minnesota Statutes 2018, section 18C.70, subdivision 5, is amended to read:
15.28 		Subd. 5.Expiration. This section expires June 30, 2020 2030.

15.29 	Sec. 5. Minnesota Statutes 2018, section 18C.71, subdivision 4, is amended to read:
15.30 		Subd. 4.Expiration. This section expires June 30, 2020 2030.

16.1 	Sec. 6. Minnesota Statutes 2018, section 18C.80, subdivision 2, is amended to read:
16.2 		Subd. 2.Expiration. This section expires June 30, 2020 2030.

16.3 	Sec. 7. Minnesota Statutes 2018, section 18K.02, subdivision 3, is amended to read:
16.4 		Subd. 3.Industrial hemp. "Industrial hemp" means the plant Cannabis sativa L. and 
16.5 	any part of the plant, whether growing or not, including the plant's seeds, and all the plant's 
16.6 	derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether 
16.7 	growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 
16.8 	percent on a dry weight basis. Industrial hemp is not marijuana as defined in section 152.01, 
16.9 	subdivision 9.

16.10 	Sec. 8. Minnesota Statutes 2018, section 18K.06, is amended to read:
16.11 	18K.06 RULEMAKING.
16.12 	(a) The commissioner shall adopt rules governing the production, testing, and licensing 
16.13 	of industrial hemp.
16.14 	(b) Rules adopted under paragraph (a) must include, but not be limited to, provisions 
16.15 	governing:
16.16 	(1) the supervision and inspection of industrial hemp during its growth and harvest;
16.17 	(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;
16.18 	(3) the use of background check results required under section 18K.04 to approve or 
16.19 	deny a license application; and
16.20 	(4) any other provision or procedure necessary to carry out the purposes of this chapter.
16.21 	(c) Rules issued under this section must be consistent with federal law regarding the 
16.22 	production, distribution, and sale of industrial hemp.
16.23 	(d) After consulting with stakeholders, the commissioner may use the expedited 
16.24 	rulemaking process in section 14.389 to adopt the rules required under this section that are 
16.25 	required to conform to the Agriculture Improvement Act of 2018, Public Law 115-1072, 
16.26 	and federal rules authorized under that act. This paragraph expires June 30, 2020.

17.1 	Sec. 9. Minnesota Statutes 2018, section 28A.16, is amended to read:
17.2 	28A.16 PERSONS SELLING LIQUOR.
17.3 	(a) The provisions of the Minnesota consolidated food licensing law, sections 28A.01
17.4 	to 28A.16 and acts amendatory thereto, shall not apply to persons licensed to sell 3.2 percent 
17.5 	malt liquor "on-sale" as provided in section 340A.403, or to persons licensed to sell 
17.6 	intoxicating liquors "on-sale" or "off-sale" as provided in sections 340A.404 to 340A.407, 
17.7 	provided that these persons sell only ice manufactured and packaged by another, or bottled 
17.8 	or canned soft drinks and prepacked candy at retail, or to persons licensed to sell intoxicating 
17.9 	liquors at wholesale to retailers as provided in section 340A.301.
17.10 	(b) When an exclusive liquor store is not exempt under paragraph (a), the commissioner 
17.11 	must exclude all gross sales of off-sale alcoholic beverages by the exclusive liquor store 
17.12 	when determining the applicable license fee under section 28A.08, subdivision 3.
17.13 	(c) For purposes of this section, "exclusive liquor store," "alcoholic beverage," 
17.14 	"intoxicating liquor," and "wholesaler" have the meanings given in section 340A.101.

17.15 	Sec. 10. Minnesota Statutes 2018, section 41A.15, is amended by adding a subdivision to 
17.16 	read:
17.17 		Subd. 2e.Biomass. "Biomass" means any organic matter that is available on a renewable 
17.18 	or recurring basis, including agricultural crops and trees; wood and wood waste and residues; 
17.19 	plants including aquatic plants, grasses, residues, and fibers; animal waste; and the organic 
17.20 	portion of solid wastes.

17.21 	Sec. 11. Minnesota Statutes 2018, section 41A.15, subdivision 10, is amended to read:
17.22 		Subd. 10.Renewable chemical. "Renewable chemical" means a chemical with biobased 
17.23 	content., polymer, monomer, plastic, or composite material that is entirely produced from 
17.24 	biomass.

17.25 	Sec. 12. Minnesota Statutes 2018, section 41A.16, subdivision 1, is amended to read:
17.26 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
17.27 	source from Minnesota at least 80 percent raw materials from Minnesota. of the biomass 
17.28 	used to produce an advanced biofuel, except that, if a facility is sited 50 miles or less from 
17.29 	the state border, raw materials biomass used to produce an advanced biofuel may be sourced 
17.30 	from outside of Minnesota, but only if at least 80 percent of the biomass is sourced from 
17.31 	within a 100-mile radius of the facility or from within Minnesota. Raw materials must be 
18.1 	from agricultural or forestry sources or from solid waste. The facility must be located in 
18.2 	Minnesota, must begin production at a specific location by June 30, 2025, and must not 
18.3 	begin operating above 23,750 MMbtu of quarterly advanced biofuel production before July 
18.4 	1, 2015. Eligible facilities include existing companies and facilities that are adding advanced 
18.5 	biofuel production capacity, or retrofitting existing capacity, as well as new companies and 
18.6 	facilities. Production of conventional corn ethanol and conventional biodiesel is not eligible. 
18.7 	Eligible advanced biofuel facilities must produce at least 23,750 1,500 MMbtu of advanced 
18.8 	biofuel quarterly.
18.9 	(b) No payments shall be made for advanced biofuel production that occurs after June 
18.10 	30, 2035, for those eligible biofuel producers under paragraph (a).
18.11 	(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility 
18.12 	for payments under this section to an advanced biofuel facility at a different location.
18.13 	(d) A producer that ceases production for any reason is ineligible to receive payments 
18.14 	under this section until the producer resumes production.
18.15 	(e) Renewable chemical production for which payment has been received under section 
18.16 	41A.17, and biomass thermal production for which payment has been received under section 
18.17 	41A.18, are not eligible for payment under this section.
18.18 	(f) Biobutanol is eligible under this section.

18.19 	Sec. 13. Minnesota Statutes 2018, section 41A.16, subdivision 2, is amended to read:
18.20 		Subd. 2.Payment amounts; limits. (a) The commissioner shall make payments to 
18.21 	eligible producers of advanced biofuel. The amount of the payment for each eligible 
18.22 	producer's annual production is $2.1053 per MMbtu for advanced biofuel production from 
18.23 	cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar or,
18.24 	starch, oil, or animal fat at a specific location for ten years after the start of production.
18.25 	(b) Total payments under this section to an eligible biofuel producer in a fiscal year may 
18.26 	not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. Total payments 
18.27 	under this section to all eligible biofuel producers in a fiscal year may not exceed the amount 
18.28 	necessary for 17,100,000 MMbtu of biofuel production. The commissioner shall award 
18.29 	payments on a first-come, first-served basis within the limits of available funding.
18.30 	(c) For purposes of this section, an entity that holds a controlling interest in more than 
18.31 	one advanced biofuel facility is considered a single eligible producer.

19.1 	Sec. 14. Minnesota Statutes 2018, section 41A.16, subdivision 4, is amended to read:
19.2 		Subd. 4.Cellulosic forestry biomass requirements. All forestry-derived cellulosic 
19.3 	biomass used for advanced biofuel production must be produced using Minnesota state
19.4 	forest biomass harvesting guidelines or the equivalent. All cellulosic biomass from brushlands 
19.5 	must be produced using Minnesota brushland harvesting biomass harvest harvesting
19.6 	guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from land 
19.7 	parcels greater than 160 acres must be certified by the Forest Stewardship Council, the 
19.8 	Sustainable Forestry Initiative, or the American Tree Farm System. Uncertified land from 
19.9 	parcels of 160 acres or less and federal land must be harvested by a logger who has completed 
19.10 	training for biomass harvesting from the Minnesota logger education program or the 
19.11 	equivalent and have a forest stewardshipmanagement plan, as defined in section 290C.02, 
19.12 	subdivision 7, or its equivalent.

19.13 	Sec. 15. Minnesota Statutes 2018, section 41A.17, subdivision 1, is amended to read:
19.14 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this program section
19.15 	must source from Minnesota at least 80 percent biobased content from Minnesota. of the 
19.16 	biomass used to produce a renewable chemical, except that, if a facility is sited 50 miles or 
19.17 	less from the state border, biobased content mustbiomass used to produce a renewable 
19.18 	chemical may be sourced from outside of Minnesota, but only if at least 80 percent of the 
19.19 	biomass is sourced from within a 100-mile radius of the facility or from within Minnesota. 
19.20 	Biobased content must be from agricultural or forestry sources or from solid waste. The 
19.21 	facility must be located in Minnesota, must begin production at a specific location by June 
19.22 	30, 2025, and must not begin production of 750,000 250,000 pounds of chemicals quarterly 
19.23 	before January 1, 2015. Eligible facilities include existing companies and facilities that are 
19.24 	adding production capacity, or retrofitting existing capacity, as well as new companies and 
19.25 	facilities. Eligible renewable chemical facilities must produce at least 750,000 250,000
19.26 	pounds of renewable chemicals quarterly. Renewable chemicals produced through processes 
19.27 	that are fully commercial before January 1, 2000, are not eligible.
19.28 	(b) No payments shall be made for renewable chemical production that occurs after June 
19.29 	30, 2035, for those eligible renewable chemical producers under paragraph (a).
19.30 	(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility 
19.31 	for payments under this section to a renewable chemical facility at a different location.
19.32 	(d) A producer that ceases production for any reason is ineligible to receive payments 
19.33 	under this section until the producer resumes production.
20.1 	(e) Advanced biofuel production for which payment has been received under section 
20.2 	41A.16, and biomass thermal production for which payment has been received under section 
20.3 	41A.18, are not eligible for payment under this section.

20.4 	Sec. 16. Minnesota Statutes 2018, section 41A.17, subdivision 2, is amended to read:
20.5 		Subd. 2.Payment amounts; bonus; limits. (a) The commissioner shall make payments 
20.6 	to eligible producers of renewable chemicals located in the state. The amount of the payment 
20.7 	for each producer's annual production is $0.03 per pound of sugar-derived renewable 
20.8 	chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of cellulosic-derived 
20.9 	renewable chemical produced at a specific location for ten years after the start of production.
20.10 	(b) An eligible facility producing renewable chemicals using agricultural cellulosic 
20.11 	biomass is eligible for a 20 percent bonus payment for each pound produced from agricultural 
20.12 	biomass that is derived from perennial crop or cover crop biomass.
20.13 	(c) Total payments under this section to an eligible renewable chemical producer in a 
20.14 	fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable 
20.15 	chemical production. Total payments under this section to all eligible renewable chemical 
20.16 	producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of 
20.17 	renewable chemical production. The commissioner shall award payments on a first-come, 
20.18 	first-served basis within the limits of available funding.
20.19 	(d) An eligible facility may blend renewable chemicals with other chemicals that are 
20.20 	not renewable chemicals, but only the percentage attributable to renewable chemicals in 
20.21 	the blended product is eligible to receive payment.
20.22 	(d) (e) For purposes of this section, an entity that holds a controlling interest in more 
20.23 	than one renewable chemical production facility is considered a single eligible producer.

20.24 	Sec. 17. Minnesota Statutes 2018, section 41A.17, subdivision 3, is amended to read:
20.25 		Subd. 3.Cellulosic forestry biomass requirements. All forestry-derived cellulosic 
20.26 	biomass used for renewable chemical production must be produced using Minnesota state
20.27 	forest biomass harvesting guidelines or the equivalent. All cellulosic biomass from brushlands 
20.28 	must be produced using Minnesota brushland harvesting biomass harvest harvesting
20.29 	guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from land 
20.30 	parcels greater than 160 acres must be certified by the Forest Stewardship Council, the 
20.31 	Sustainable Forestry Initiative, or the American Tree Farm System. Uncertified land from 
20.32 	parcels of 160 acres or less and federal land must be harvested by a logger who has completed 
21.1 	training for biomass harvesting from the Minnesota logger education program or the 
21.2 	equivalent and have a forest stewardship management plan, as defined in section 290C.02, 
21.3 	subdivision 7, or its equivalent.

21.4 	Sec. 18. Minnesota Statutes 2018, section 41A.18, subdivision 1, is amended to read:
21.5 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
21.6 	source from Minnesota at least 80 percent raw materials from Minnesota. of the biomass 
21.7 	used for biomass thermal production, except that, if a facility is sited 50 miles or less from 
21.8 	the state border, raw materials shouldbiomass used for biomass thermal production may 
21.9 	be sourced from outside of Minnesota, but only if at least 80 percent of the biomass is 
21.10 	sourced from within a 100-mile radius of the facility, or from within Minnesota. Raw 
21.11 	materials Biomass must be from agricultural or forestry sources. The facility must be located 
21.12 	in Minnesota, must have begun production at a specific location by June 30, 2025, and must 
21.13 	not begin before July 1, 2015. Eligible facilities include existing companies and facilities 
21.14 	that are adding production capacity, or retrofitting existing capacity, as well as new 
21.15 	companies and facilities. Eligible biomass thermal production facilities must produce at 
21.16 	least 250 MMbtu of biomass thermal quarterly.
21.17 	(b) No payments shall be made for biomass thermal production that occurs after June 
21.18 	30, 2035, for those eligible biomass thermal producers under paragraph (a).
21.19 	(c) An eligible producer of biomass thermal production shall not transfer the producer's 
21.20 	eligibility for payments under this section to a biomass thermal production facility at a 
21.21 	different location.
21.22 	(d) A producer that ceases production for any reason is ineligible to receive payments 
21.23 	under this section until the producer resumes production.
21.24 	(e) Biofuel production for which payment has been received under section 41A.16, and 
21.25 	renewable chemical production for which payment has been received under section 41A.17, 
21.26 	are not eligible for payment under this section.

21.27 	Sec. 19. Minnesota Statutes 2018, section 41A.18, subdivision 2, is amended to read:
21.28 		Subd. 2.Payment amounts; bonus; limits; blending. (a) The commissioner shall make 
21.29 	payments to eligible producers of biomass thermal located in the state. The amount of the 
21.30 	payment for each producer's annual production is $5.00 per MMbtu of biomass thermal 
21.31 	production produced at a specific location for ten years after the start of production.
22.1 	(b) An eligible facility producing biomass thermal using agricultural cellulosic biomass 
22.2 	is eligible for a 20 percent bonus payment for each MMbtu produced from agricultural 
22.3 	biomass that is derived from perennial crop or cover crop biomass.
22.4 	(c) Total payments under this section to an eligible thermal producer in a fiscal year 
22.5 	may not exceed the amount necessary for 30,000 MMbtu of thermal production. Total 
22.6 	payments under this section to all eligible thermal producers in a fiscal year may not exceed 
22.7 	the amount necessary for 150,000 MMbtu of total thermal production. The commissioner 
22.8 	shall award payments on a first-come, first-served basis within the limits of available funding.
22.9 	(d) An eligible facility may blend a cellulosic feedstock with other fuels in the biomass 
22.10 	thermal production facility, but only the percentage attributable to cellulosic material is 
22.11 	eligible to receive payment.
22.12 	(e) For purposes of this section, an entity that holds a controlling interest in more than 
22.13 	one biomass thermal production facility is considered a single eligible producer.

22.14 	Sec. 20. Minnesota Statutes 2018, section 41A.18, subdivision 3, is amended to read:
22.15 		Subd. 3.Cellulosic forestry biomass requirements. All forestry-derived cellulosic 
22.16 	biomass used for biomass thermal production must be produced using Minnesota state forest
22.17 	biomass harvesting guidelines or the equivalent. All cellulosic biomass from brushland
22.18 	brushlands must be produced using Minnesota brushland harvesting biomass harvesting 
22.19 	guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from land 
22.20 	parcels greater than 160 acres must be certified by the Forest Stewardship Council, the 
22.21 	Sustainable Forestry Initiative, or the American Tree Farm System. Uncertified land from 
22.22 	parcels of 160 acres or less and federal land must be harvested by a logger who has completed 
22.23 	training for biomass harvesting from the Minnesota logger education program or the 
22.24 	equivalent and have a forest stewardship management plan, as defined in section 290C.02, 
22.25 	subdivision 7, or its equivalent.

22.26 	Sec. 21. [41B.0455] DAIRY MODERNIZATION AND INNOVATION LOAN 
22.27 	PROGRAM.
22.28 		Subdivision 1.Establishment. The authority may establish and implement a loan program 
22.29 	to finance dairy modernization and innovations in the state.
22.30 		Subd. 2.Loan participation. (a) The authority may participate in a dairy modernization 
22.31 	and innovation loan with an eligible lender to a livestock farmer who meets the requirements 
22.32 	of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively engaged in a 
23.1 	livestock operation. A prospective borrower must have a total net worth, including assets 
23.2 	and liabilities of the borrower's spouse and dependents, of less than $1,700,000 in 2017 and 
23.3 	an amount in subsequent years which is adjusted for inflation by multiplying that amount 
23.4 	by the cumulative inflation rate as determined by the United States All-Items Consumer 
23.5 	Price Index.
23.6 	(b) Participation is limited to 45 percent of the principal amount of the loan or $525,000, 
23.7 	whichever is less. The interest rates and repayment terms of the authority's participation 
23.8 	interest may be different from the interest rates and repayment terms of the lender's retained 
23.9 	portion of the loan.
23.10 		Subd. 3.Specifications. (a) Loan participation may be for acquisition, installation of 
23.11 	improvements to land, buildings, and other permanent structures, including equipment 
23.12 	incorporated in or permanently affixed to the land, buildings, or structures, which are useful 
23.13 	for and intended to be used for the purpose of dairy farming, including, but not limited to:
23.14 	(1) the acquisition, construction, or improvement of buildings or facilities for dairy 
23.15 	farming; or
23.16 	(2) the acquisition of equipment for dairy farming such as:
23.17 	(i) barns;
23.18 	(ii) watering facilities;
23.19 	(iii) feed storage and handling equipment;
23.20 	(iv) milking parlors;
23.21 	(v) robotic equipment;
23.22 	(vi) scales;
23.23 	(vii) milk storage and cooling facilities; or
23.24 	(viii) bulk tanks.
23.25 	(b) Each loan participation must be secured by a mortgage on real property and other 
23.26 	security as the authority may require.
23.27 		Subd. 4.Application and origination fee. The authority may impose a reasonable 
23.28 	nonrefundable application fee for each application for a loan participation and an origination 
23.29 	fee for each loan issued under the dairy modernization and innovation loan program. The 
23.30 	origination fee initially shall be set at 1.5 percent and the application fee at $50. The authority 
23.31 	may review the fees annually and make adjustments as necessary. The fees must be deposited 
24.1 	in the state treasury and credited to the Rural Finance Authority administrative account 
24.2 	established in section 41B.03.
24.3 		Subd. 5.Interest rate. The interest rate per annum on the dairy modernization and 
24.4 	innovation loan participation must be at the rate of interest determined by the authority to 
24.5 	be necessary to provide for the timely payment of principal and interest when due on bonds 
24.6 	or other obligations of the authority issued under this chapter, to provide financing for loan 
24.7 	participations made under the dairy modernization and innovation loan program, and to 
24.8 	provide for reasonable and necessary costs of issuing, carrying, administering, and securing 
24.9 	the bonds or notes and to pay the costs incurred and to be incurred by the authority in the 
24.10 	implementation of the dairy modernization and innovation loan program.

24.11 	Sec. 22. Minnesota Statutes 2018, section 41B.055, subdivision 4, is amended to read:
24.12 		Subd. 4.Eligible expenditures. Money may be used for loans for the acquisition of 
24.13 	equipment for animal housing, confinement, animal feeding, milk production, and waste 
24.14 	management, including the following, if related to animal husbandry:
24.15 	(1) fences;
24.16 	(2) watering facilities;
24.17 	(3) feed storage and handling equipment;
24.18 	(4) milking parlors;
24.19 	(5) milking equipment, including robotic equipment;
24.20 	(6) scales;
24.21 	(7) milk storage and cooling facilities;
24.22 	(8) manure pumping and storage facilities;
24.23 	(9) capital investment in pasture;
24.24 	(10) hoop barns;
24.25 	(11) portable structures;
24.26 	(12) hay and forage equipment; and
24.27 	(13) related structural work for the installation of equipment.

25.1 	Sec. 23. Minnesota Statutes 2018, section 116.06, is amended by adding a subdivision to 
25.2 	read:
25.3 		Subd. 16a.Pastures. "Pastures" means areas, including winter feeding areas as part of 
25.4 	a grazing area, where grass or other growing plants are used for grazing of livestock and 
25.5 	where the concentration of animals allows a vegetative cover to be maintained during the 
25.6 	growing season. "Pastures" also includes agricultural land that is used for growing crops 
25.7 	during the growing season and is used for grazing of livestock on vegetation or crop residues 
25.8 	during the winter. In either case, a cover of vegetation or crop residues is not required:
25.9 	(1) in the immediate vicinity of supplemental feeding or watering devices;
25.10 	(2) in associated corrals and chutes where livestock are gathered for the purpose of 
25.11 	sorting, veterinary services, loading and unloading trucks and trailers, and other necessary 
25.12 	activities related to good animal husbandry practices;
25.13 	(3) in associated livestock access lanes used to convey livestock to and from areas of 
25.14 	the pasture; and
25.15 	(4) in sacrificial areas that are part of a larger pasture system and are used to temporarily 
25.16 	accommodate livestock and protect other pasture areas when adverse soil or weather 
25.17 	conditions pose a risk of damaging the pastures, and on which the vegetation is naturally 
25.18 	restored or replanted after the adverse soil or weather conditions are removed and the 
25.19 	livestock are moved to other areas of the pasture.

25.20 	Sec. 24. Minnesota Statutes 2018, section 116.07, subdivision 7, is amended to read:
25.21 		Subd. 7.Counties; processing applications for animal lot permits. Any Minnesota 
25.22 	county board may, by resolution, with approval of the Pollution Control Agency, assume 
25.23 	responsibility for processing applications for permits required by the Pollution Control 
25.24 	Agency under this section for livestock feedlots, poultry lots or other animal lots. The 
25.25 	responsibility for permit application processing, if assumed by a county, may be delegated 
25.26 	by the county board to any appropriate county officer or employee.
25.27 	(a) For the purposes of this subdivision, the term "processing" includes:
25.28 	(1) the distribution to applicants of forms provided by the Pollution Control Agency;
25.29 	(2) the receipt and examination of completed application forms, and the certification, 
25.30 	in writing, to the Pollution Control Agency either that the animal lot facility for which a 
25.31 	permit is sought by an applicant will comply with applicable rules and standards, or, if the 
26.1 	facility will not comply, the respects in which a variance would be required for the issuance 
26.2 	of a permit; and
26.3 	(3) rendering to applicants, upon request, assistance necessary for the proper completion 
26.4 	of an application.
26.5 	(b) For the purposes of this subdivision, the term "processing" may include, at the option 
26.6 	of the county board, issuing, denying, modifying, imposing conditions upon, or revoking 
26.7 	permits pursuant to the provisions of this section or rules promulgated pursuant to it, subject 
26.8 	to review, suspension, and reversal by the Pollution Control Agency. The Pollution Control 
26.9 	Agency shall, after written notification, have 15 days to review, suspend, modify, or reverse 
26.10 	the issuance of the permit. After this period, the action of the county board is final, subject 
26.11 	to appeal as provided in chapter 14. For permit applications filed after October 1, 2001, 
26.12 	section 15.99 applies to feedlot permits issued by the agency or a county pursuant to this 
26.13 	subdivision.
26.14 	(c) For the purpose of administration of rules adopted under this subdivision, the 
26.15 	commissioner and the agency may provide exceptions for cases where the owner of a feedlot 
26.16 	has specific written plans to close the feedlot within five years. These exceptions include 
26.17 	waiving requirements for major capital improvements.
26.18 	(d) For purposes of this subdivision, a discharge caused by an extraordinary natural 
26.19 	event such as a precipitation event of greater magnitude than the 25-year, 24-hour event, 
26.20 	tornado, or flood in excess of the 100-year flood is not a "direct discharge of pollutants."
26.21 	(e) In adopting and enforcing rules under this subdivision, the commissioner shall 
26.22 	cooperate closely with other governmental agencies.
26.23 	(f) The Pollution Control Agency shall work with the Minnesota Extension Service, the 
26.24 	Department of Agriculture, the Board of Water and Soil Resources, producer groups, local 
26.25 	units of government, as well as with appropriate federal agencies such as the Natural 
26.26 	Resources Conservation Service and the Farm Service Agency, to notify and educate 
26.27 	producers of rules under this subdivision at the time the rules are being developed and 
26.28 	adopted and at least every two years thereafter.
26.29 	(g) The Pollution Control Agency shall adopt rules governing the issuance and denial 
26.30 	of permits for livestock feedlots, poultry lots or other animal lots pursuant to this section. 
26.31 	Pastures are exempt from the rules authorized under this paragraph, and no feedlot permit 
26.32 	shall include any terms or conditions that impose any requirements related to any pastures 
26.33 	located on, adjacent to, or in the vicinity of the feedlot. A feedlot permit is not required for 
26.34 	livestock feedlots with more than ten but less than 50 animal units; provided they are not 
27.1 	in shoreland areas. A livestock feedlot permit does not become required solely because of 
27.2 	a change in the ownership of the buildings, grounds, or feedlot. These rules apply both to 
27.3 	permits issued by counties and to permits issued by the Pollution Control Agency directly.
27.4 	(h) The Pollution Control Agency shall exercise supervising authority with respect to 
27.5 	the processing of animal lot permit applications by a county.
27.6 	(i) Any new rules or amendments to existing rules proposed under the authority granted 
27.7 	in this subdivision, or to implement new fees on animal feedlots, must be submitted to the 
27.8 	members of legislative policy and finance committees with jurisdiction over agriculture and 
27.9 	the environment prior to final adoption. The rules must not become effective until 90 days 
27.10 	after the proposed rules are submitted to the members.
27.11 	(j) Until new rules are adopted that provide for plans for manure storage structures, any 
27.12 	plans for a liquid manure storage structure must be prepared or approved by a registered 
27.13 	professional engineer or a United States Department of Agriculture, Natural Resources 
27.14 	Conservation Service employee.
27.15 	(k) A county may adopt by ordinance standards for animal feedlots that are more stringent 
27.16 	than standards in Pollution Control Agency rules.
27.17 	(l) After January 1, 2001, a county that has not accepted delegation of the feedlot permit 
27.18 	program must hold a public meeting prior to the agency issuing a feedlot permit for a feedlot 
27.19 	facility with 300 or more animal units, unless another public meeting has been held with 
27.20 	regard to the feedlot facility to be permitted.
27.21 	(m) After the proposed rules published in the State Register, volume 24, number 25, are 
27.22 	finally adopted, the agency may not impose additional conditions as a part of a feedlot 
27.23 	permit, unless specifically required by law or agreed to by the feedlot operator.
27.24 	(n) For the purposes of feedlot permitting, a discharge from land-applied manure or a 
27.25 	manure stockpile that is managed according to agency rule must not be subject to a fine for 
27.26 	a discharge violation.
27.27 	(o) For the purposes of feedlot permitting, manure that is land applied, or a manure 
27.28 	stockpile that is managed according to agency rule, must not be considered a discharge into 
27.29 	waters of the state, unless the discharge is to waters of the state, as defined by section 
27.30 	103G.005, subdivision 17, except type 1 or type 2 wetlands, as defined in section 103G.005, 
27.31 	subdivision 17b, and does not meet discharge standards established for feedlots under agency 
27.32 	rule.
28.1 	(p) The natural deposit of manure by livestock on pasture shall not be considered a 
28.2 	discharge into waters of the state and shall not be subject to any fine or penalty.
28.3 	(q) Unless the upgrade is needed to correct an immediate public health threat under 
28.4 	section 145A.04, subdivision 8, or the facility is determined to be a concentrated animal 
28.5 	feeding operation under Code of Federal Regulations, title 40, section 122.23, in effect on 
28.6 	April 15, 2003, the agency may not require a feedlot operator:
28.7 	(1) to spend more than $3,000 to upgrade an existing feedlot with less than 300 animal 
28.8 	units unless cost-share money is available to the feedlot operator for 75 percent of the cost 
28.9 	of the upgrade; or
28.10 	(2) to spend more than $10,000 to upgrade an existing feedlot with between 300 and 
28.11 	500 animal units, unless cost-share money is available to the feedlot operator for 75 percent 
28.12 	of the cost of the upgrade or $50,000, whichever is less.
28.13 	(q) For the purposes of this section, "pastures" means areas, including winter feeding 
28.14 	areas as part of a grazing area, where grass or other growing plants are used for grazing and 
28.15 	where the concentration of animals allows a vegetative cover to be maintained during the 
28.16 	growing season except that vegetative cover is not required:
28.17 	(1) in the immediate vicinity of supplemental feeding or watering devices;
28.18 	(2) in associated corrals and chutes where livestock are gathered for the purpose of 
28.19 	sorting, veterinary services, loading and unloading trucks and trailers, and other necessary 
28.20 	activities related to good animal husbandry practices; and
28.21 	(3) in associated livestock access lanes used to convey livestock to and from areas of 
28.22 	the pasture.
28.23 	(r) A feedlot operator who stores and applies up to 100,000 gallons per calendar year of 
28.24 	private truck wash wastewater resulting from trucks that transport animals or supplies to 
28.25 	and from the feedlot does not require a permit to land-apply industrial by-products if the 
28.26 	feedlot operator stores and applies the wastewater in accordance with Pollution Control 
28.27 	Agency requirements for land applications of industrial by-product that do not require a 
28.28 	permit.
28.29 	(s) A feedlot operator who holds a permit from the Pollution Control Agency to 
28.30 	land-apply industrial by-products from a private truck wash is not required to have a certified 
28.31 	land applicator apply the private truck wash wastewater if the wastewater is applied by the 
28.32 	feedlot operator to cropland owned or leased by the feedlot operator or by a commercial 
28.33 	animal waste technician licensed by the commissioner of agriculture under chapter 18C. 
29.1 	For purposes of this paragraph and paragraph (r), "private truck wash" means a truck washing 
29.2 	facility owned or leased, operated, and used only by a feedlot operator to wash trucks owned 
29.3 	or leased by the feedlot operator and used to transport animals or supplies to and from the 
29.4 	feedlot.

29.5 	Sec. 25. Minnesota Statutes 2018, section 116.07, subdivision 7d, is amended to read:
29.6 		Subd. 7d.Exemption. (a) Notwithstanding subdivision 7 or Minnesota Rules, chapter 
29.7 	7020, to the contrary, and notwithstanding the proximity to public or private waters, an 
29.8 	owner or resident of agricultural land on which livestock have been allowed to pasture at 
29.9 	any time during the ten-year period beginning January 1, 2010, is permanently exempt from 
29.10 	requirements related to feedlot or manure management on that land for so long as the property 
29.11 	remains in pasture.
29.12 	(b) For the purposes of this subdivision, "pasture" means areas where livestock graze 
29.13 	on grass or other growing plants. Pasture also means agricultural land where livestock are 
29.14 	allowed to forage during the winter time and which land is used for cropping purposes in 
29.15 	the growing season. In either case, the concentration of animals must be such that a vegetative 
29.16 	cover, whether of grass, growing plants, or crops, is maintained during the growing season 
29.17 	except in the immediate vicinity of temporary supplemental feeding or watering devices.

29.18 	Sec. 26. Minnesota Statutes 2018, section 223.16, subdivision 2a, is amended to read:
29.19 		Subd. 2a.Cash sale. (a) "Cash sale" means:
29.20 	(a) a sale that is not reduced to writing as a voluntary extension of credit contract and 
29.21 	for which payment is tendered to the seller not later than the close of business on the next 
29.22 	business day after the sale, either in cash or by check, or by mailing or wiring funds to the 
29.23 	seller's account in the amount of at least 80 percent of the value of the grain at delivery; or.
29.24 	(b) a sale of a shipment of grain which is part of a multiple shipment sale, for which a 
29.25 	scale ticket clearly marked "CASH" has been received by the seller before completion of 
29.26 	the entire sale, and for which payment is tendered in cash or by check not later than ten 
29.27 	days after the sale of that shipment, except that when the entire sale is completed, payment 
29.28 	is tendered in cash or by check not later than the close of business on the next business day, 
29.29 	or within 48 hours, whichever is later. For the purposes of this subdivision, "cash" means 
29.30 	currency or manner of payment equivalent such as a certified check, a cashier's check, a 
29.31 	postal, bank, or express money order, in which the amount of payment is verified and secured 
29.32 	prior to issuance.

30.1 	Sec. 27. Minnesota Statutes 2018, section 223.16, subdivision 4, is amended to read:
30.2 		Subd. 4.Grain. "Grain" means any cereal grain, coarse grain, or oilseed in unprocessed 
30.3 	form for which a standard has been established by the United States Secretary of Agriculture 
30.4 	or the Minnesota Board of Grain Standards, dry edible beans, or other agricultural crops 
30.5 	designated by the commissioner by rule.

30.6 	Sec. 28. Minnesota Statutes 2018, section 223.17, subdivision 3, is amended to read:
30.7 		Subd. 3.Grain buyers and storage account; fees. The commissioner shall set the fees 
30.8 	for inspections under sections 223.15 to 223.22 at levels necessary to pay the expenses of 
30.9 	administering and enforcing sections 223.15 to 223.22.
30.10 	The fee for any license issued or renewed after June 30, 2005, shall be set according to 
30.11 	the following schedule:
30.12 	(a) $140 plus $110 for each additional location for grain buyers whose gross annual 
30.13 	purchases are less than $100,000;
30.14 	(b) $275 plus $110 for each additional location for grain buyers whose gross annual 
30.15 	purchases are at least $100,000, but not more than $750,000;
30.16 	(c) $415 plus $220 for each additional location for grain buyers whose gross annual 
30.17 	purchases are more than $750,000 but not more than $1,500,000;
30.18 	(d) $550 plus $220 for each additional location for grain buyers whose gross annual 
30.19 	purchases are more than $1,500,000 but not more than $3,000,000; and
30.20 	(e) $700 plus $220 for each additional location for grain buyers whose gross annual 
30.21 	purchases are more than $3,000,000.
30.22 	A penalty amount not to exceed ten percent of the fees due may be imposed by the 
30.23 	commissioner for each month for which the fees are delinquent.
30.24 	There is created the grain buyers and storage account in the agricultural fund. Money 
30.25 	collected pursuant to sections 223.15 to 223.19 shall be paid into the state treasury and 
30.26 	credited to the grain buyers and storage account and is appropriated to the commissioner 
30.27 	for the administration and enforcement of sections 223.15 to 223.22. Interest, if any, received 
30.28 	on deposits of these moneys shall be credited to the account, and there shall be paid into 
30.29 	this fund any sum provided by the legislature for the purpose of carrying out the provisions 
30.30 	of those sections.

31.1 	Sec. 29. Minnesota Statutes 2018, section 223.17, is amended by adding a subdivision to 
31.2 	read:
31.3 		Subd. 3a.Examination fee. A person with a license to buy grain is subject to an 
31.4 	examination fee for each licensed location, based on the following schedule for one 
31.5 	examination:

31.631.7		Bushel Capacity
	Examination 
Fee
		
31.8		Inspections without a grain measure
	$
	100
		
31.9		Less than 150,001
	$
	300
		
31.10		150,001 to 250,000
	$
	425
		
31.11		250,001 to 500,000
	$
	545
		
31.12		500,001 to 750,000
	$
	700
		
31.13		750,001 to 1,000,000
	$
	865
		
31.14		1,000,001 to 1,200,000
	$
	1,040
		
31.15		1,200,001 to 1,500,000
	$
	1,205
		
31.16		1,500,001 to 2,000,000
	$
	1,380
		
31.17		More than 2,000,000
	$
	1,555
		
31.18 	The fee for supplemental examinations is $55 per hour per examiner.

31.19 	Sec. 30. Minnesota Statutes 2018, section 223.17, is amended by adding a subdivision to 
31.20 	read:
31.21 		Subd. 3b.Schedule of examination. A licensee under sections 223.15 to 223.23 is 
31.22 	subject to one examination annually conducted by the commissioner or the Agricultural 
31.23 	Marketing Service of the United States Department of Agriculture.  Examinations must 
31.24 	include measurement of all grain owned and maintained by the grain buyer. Additional 
31.25 	exams, at the determination of the commissioner, may be required.

31.26 	Sec. 31. Minnesota Statutes 2018, section 223.17, subdivision 4, is amended to read:
31.27 		Subd. 4.Bond. (a) Except as provided in paragraph (f), before a grain buyer's license 
31.28 	is issued, the applicant for the license must file with the commissioner a bond in a penal 
31.29 	sum prescribed by the commissioner but not less than the following amounts:
31.30 	(1) $10,000 for grain buyers whose gross annual purchases are $100,000 or less;
31.31 	(2) $20,000 for grain buyers whose gross annual purchases are more than $100,000 but 
31.32 	not more than $750,000;
32.1 	(3) $30,000 for grain buyers whose gross annual purchases are more than $750,000 but 
32.2 	not more than $1,500,000;
32.3 	(4) $40,000 for grain buyers whose gross annual purchases are more than $1,500,000 
32.4 	but not more than $3,000,000;
32.5 	(5) $50,000 for grain buyers whose gross annual purchases are more than $3,000,000 
32.6 	but not more than $6,000,000;
32.7 	(6) $70,000 for grain buyers whose gross annual purchases are more than $6,000,000 
32.8 	but not more than $12,000,000;
32.9 	(7) $125,000 for grain buyers whose gross annual purchases are more than $12,000,000 
32.10 	but not more than $24,000,000; and
32.11 	(8) $150,000 for grain buyers whose gross annual purchases exceed $24,000,000.
32.12 	(b) A grain buyer who has filed a bond with the commissioner prior to July 1, 2004, is 
32.13 	not required to increase the amount of the bond to comply with this section until July 1, 
32.14 	2005. The commissioner may postpone an increase in the amount of the bond until July 1, 
32.15 	2006, if a licensee demonstrates that the increase will impose undue financial hardship on 
32.16 	the licensee, and that producers will not be harmed as a result of the postponement. The 
32.17 	commissioner may impose other restrictions on a licensee whose bond increase has been 
32.18 	postponed. The amount of the bond shall be based on the most recent gross annual grain 
32.19 	purchase report of the grain buyer.
32.20 	(c) A first-time applicant for a grain buyer's license shall file a $50,000 bond with the 
32.21 	commissioner. This bond shall remain in effect for the first year of the license. Thereafter, 
32.22 	the licensee shall comply with the applicable bonding requirements contained in paragraph 
32.23 	(a), clauses (1) to (8).
32.24 	(d) In lieu of the bond required by this subdivision the applicant may deposit with the 
32.25 	commissioner of management and budget cash, a certified check, a cashier's check, a postal, 
32.26 	bank, or express money order, assignable bonds or notes of the United States, or an 
32.27 	assignment of a bank savings account or investment certificate or an irrevocable bank letter 
32.28 	of credit as defined in section 336.5-102, in the same amount as would be required for a 
32.29 	bond.
32.30 	(e) Bonds must be continuous until canceled. To cancel a bond, a surety must provide 
32.31 	90 days' written notice of the bond's termination date to the licensee and the commissioner.
32.32 	(f) A grain buyer who notifies the commissioner of the intent to purchase grain 
32.33 	immediately upon delivery solely with cash; certified check; cashier's check; or postal, bank, 
33.1 	or express money order is not obligated to file a bond as long as annual purchases do not 
33.2 	exceed $100,000.

33.3 	Sec. 32. Minnesota Statutes 2018, section 223.17, subdivision 5, is amended to read:
33.4 		Subd. 5.Cash sales; manner of payment. For a cash sale of a shipment of grain which 
33.5 	is part of a multiple shipment sale, the grain buyer shall tender payment to the seller in cash 
33.6 	or by check or shall wire or mail the payment to the seller's account not later than ten days 
33.7 	after the sale of that shipment, except that when the entire sale is completed, payment shall 
33.8 	be tendered not later than the close of business on the next day, or within 48 hours, whichever 
33.9 	is later. For other cash sales the grain buyer, before the close of business on the next business 
33.10 	day after the sale, shall tender payment to the seller in cash or by check, or shall wire or 
33.11 	mail funds to the seller's account in the amount of at least 80 percent of the value of the 
33.12 	grain at the time of delivery. The grain buyer shall complete final settlement as rapidly as 
33.13 	possible through ordinary diligence.

33.14 	Sec. 33. Minnesota Statutes 2018, section 223.17, subdivision 6, is amended to read:
33.15 		Subd. 6.Financial statements. (a) The commissioner may shall require an annual 
33.16 	financial statement from a licensee which has been prepared in accordance with generally 
33.17 	accepted accounting principles and which meets the following requirements:
33.18 	(1) the financial statement shall include, but not be limited to the following:
33.19 	(i) a balance sheet;
33.20 	(ii) a statement of income (profit and loss);
33.21 	(iii) a statement of retained earnings;
33.22 	(iv) a statement of changes in financial position; and
33.23 	(v) a statement of the dollar amount of grain purchased in the previous fiscal year of the 
33.24 	grain buyer.;
33.25 	(2) the financial statement shall be accompanied by a compilation report of the financial 
33.26 	statement that is prepared by a grain commission firm or a management firm approved by 
33.27 	the commissioner or by an independent public accountant, in accordance with standards 
33.28 	established by the American Institute of Certified Public Accountants. Grain buyers 
33.29 	purchasing less than 150,000 bushels of grain per calendar year may submit a financial 
33.30 	statement prepared by a public accountant who is not an employee or a relative within the 
33.31 	third degree of kindred according to civil law.;
34.1 	(3) the financial statement shall be accompanied by a certification by the chief executive 
34.2 	officer or the chief executive officer's designee of the licensee, and where applicable, all 
34.3 	members of the governing board of directors under penalty of perjury, that the financial 
34.4 	statement accurately reflects the financial condition of the licensee for the period specified 
34.5 	in the statement.;
34.6 	(4) for grain buyers purchasing under $5,000,000 of grain annually, financial statements 
34.7 	shall be reviewed by a certified public accountant in accordance with standards established 
34.8 	by the American Institute of Certified Public Accountants, and must show that the financial 
34.9 	statements are free from material misstatements; and
34.10 	(5) for grain buyers purchasing $5,000,000 or more of grain annually, financial statements 
34.11 	shall be audited by a certified public accountant in accordance with standards established 
34.12 	by the American Institute of Certified Public Accountants and must include an opinion 
34.13 	statement from the certified public accountant.
34.14 	(b) Only one financial statement must be filed for a chain of warehouses owned or 
34.15 	operated as a single business entity, unless otherwise required by the commissioner. Any 
34.16 	grain buyer having a net worth in excess of $500,000,000 need not file the financial statement 
34.17 	required by this subdivision but must provide the commissioner with a certified net worth 
34.18 	statement. All financial statements filed with the commissioner are private or nonpublic 
34.19 	data as provided in section 13.02.
34.20 	(c) A grain buyer who purchases grain immediately upon delivery solely with cash; 
34.21 	certified check; cashier's check; or postal, bank, or express money order and whose annual 
34.22 	purchases do not exceed $100,000 is exempt from   the provisions  contained in this 
34.23 	subdivision.
34.24 	(d) The commissioner shall annually provide information on the person's fiduciary duties 
34.25 	to all persons required to certify the financial statement under paragraph (a), clause (2).

34.26 	Sec. 34. Minnesota Statutes 2018, section 223.177, subdivision 2, is amended to read:
34.27 		Subd. 2.Oral contracts. Any grain buyer entering into a voluntary extension of credit 
34.28 	contract orally or by phone shall give or mail to the seller a written confirmation conforming 
34.29 	to the requirements of section 223.175before the close of the next business day within ten 
34.30 	days. Written confirmation of oral contracts must meet the requirements of subdivision 3.

35.1 	Sec. 35. Minnesota Statutes 2018, section 223.177, subdivision 3, is amended to read:
35.2 		Subd. 3.Contracts reduced to writing. A voluntary extension of credit contract must 
35.3 	be reduced to writing by the grain buyer and mailed or given to the seller before the close 
35.4 	of the next business day after the contract is entered into or, in the case of an oral or phone 
35.5 	contract, after the written confirmation is received by the seller. Provided, however, that if 
35.6 	a scale ticket has been received by the seller prior to the completion of the grain shipment, 
35.7 	the contract must be reduced to writing within ten days after the sale, but not later than the 
35.8 	close of the next business day after the completion of the entire sale and is signed by both 
35.9 	buyer and seller within ten days of the date of delivery. The form of the contract shall comply 
35.10 	with the requirements of section 223.175. A grain buyer may use an electronic version of 
35.11 	a voluntary extension of credit contract that contains the same information as a written 
35.12 	document and that conforms to the requirements of this chapter to which a seller has applied 
35.13 	an electronic signature in place of a written document. There must not at any time be an 
35.14 	electronic and paper voluntary extension of credit contract representing the same lot of 
35.15 	grain.

35.16 	Sec. 36. Minnesota Statutes 2018, section 223.177, subdivision 8, is amended to read:
35.17 		Subd. 8.Records. A grain buyer shall keep sufficiently detailed books and records of 
35.18 	signed voluntary extension of credit contracts and evidences of grain, rights in grain, and 
35.19 	the proceeds from the sale of grain so as to clearly show compliance with this section. The 
35.20 	commissioner or the commissioner's authorized agent may inspect these books and records 
35.21 	to determine whether grain buyers are complying with the provisions of this chapter, and 
35.22 	for this purpose the commissioner may enter upon any public or private premises during 
35.23 	regular business hours.

35.24 	Sec. 37. Minnesota Statutes 2018, section 232.21, is amended by adding a subdivision to 
35.25 	read:
35.26 		Subd. 4a.Grain bank. "Grain bank" means a feed-processing plant that receives and 
35.27 	stores grain it processes and returns to the grain's owner in amounts, at intervals, and with 
35.28 	added ingredients that are mutually agreeable to the grain's owner and the person operating 
35.29 	the plant. Grain bank does not include a seed cleaning plant.

36.1 	Sec. 38. Minnesota Statutes 2018, section 232.21, is amended by adding a subdivision to 
36.2 	read:
36.3 		Subd. 13.Temporary storage. "Temporary storage" means grain stored in outdoor piles 
36.4 	or suitable structures, which are not in use for the entirety of the license period.

36.5 	Sec. 39. Minnesota Statutes 2018, section 232.22, subdivision 3, is amended to read:
36.6 		Subd. 3.Fees; grain buyers and storage account. There is created in the agricultural 
36.7 	fund an account known as the grain buyers and storage account. The commissioner shall 
36.8 	set the fees for examinations, certifications, and licenses under sections 232.20 to 232.24
36.9 	at levels necessary to pay the costs of administering and enforcing sections 232.20 to 232.24. 
36.10 	All money collected pursuant to sections 232.20 to 232.24 shall be paid by the commissioner 
36.11 	into the state treasury and credited to the grain buyers and storage account and is appropriated 
36.12 	to the commissioner for the administration and enforcement of sections 232.20 to 232.24. 
36.13 	All money collected pursuant to chapter 231 shall be paid by the commissioner into the 
36.14 	grain buyers and storage account and is appropriated to the commissioner for the 
36.15 	administration and enforcement of chapter 231.
36.16 	The fees for a license to store grain are as follows:
36.17 	(a) For a license to store grain, $110 for each home rule charter or statutory city or town 
36.18 	in which a public grain warehouse is operated.
36.19 	(b) A person with a license to store grain in a public grain warehouse is subject to an 
36.20 	examination fee for each licensed location, based on the following schedule for one 
36.21 	examination:

36.2236.23		Bushel Capacity
	Examination 
Fee
		
36.24		Less than 150,001
	$
	300
		
36.25		150,001 to 250,000
	$
	425
		
36.26		250,001 to 500,000
	$
	545
		
36.27		500,001 to 750,000
	$
	700
		
36.28		750,001 to 1,000,000
	$
	865
		
36.29		1,000,001 to 1,200,000
	$
	1,040
		
36.30		1,200,001 to 1,500,000
	$
	1,205
		
36.31		1,500,001 to 2,000,000
	$
	1,380
		
36.32		More than 2,000,000
	$
	1,555
		
36.33 	(c) The fee for the second examination supplemental examinations is $55 per hour per 
36.34 	examiner for warehouse operators who choose to have it performed by the commissioner.
37.1 	(d) A penalty amount not to exceed ten percent of the fees due may be imposed by the 
37.2 	commissioner for each month for which the fees are delinquent.

37.3 	Sec. 40. Minnesota Statutes 2018, section 232.22, subdivision 4, is amended to read:
37.4 		Subd. 4.Bonding. (a) Before a license is issued, the applicant for a public grain 
37.5 	warehouse operator's license shall file with the commissioner a bond in a penal sum 
37.6 	prescribed by the commissioner based on the annual average storage liability as stated on 
37.7 	the statement of grain in storage report or on the gross annual grain purchase report, 
37.8 	whichever is greater, and applying the following amounts:
37.9 	(1) $10,000 for storages with annual average storage liability of more than $0 but not 
37.10 	more than $25,000;
37.11 	(2) $20,000 for storages with annual average storage liability of more than $25,001 but 
37.12 	not more than $50,000;
37.13 	(3) $30,000 for storages with annual average storage liability of more than $50,001 but 
37.14 	not more than $75,000;
37.15 	(4) $50,000 for storages with annual average storage liability of more than $75,001 but 
37.16 	not more than $100,000;
37.17 	(5) $75,000 for storages with annual average storage liability of more than $100,001 
37.18 	but not more than $200,000;
37.19 	(6) $125,000 for storages with annual average storage liability of more than $200,001 
37.20 	but not more than $300,000;
37.21 	(7) $175,000 for storages with annual average storage liability of more than $300,001 
37.22 	but not more than $400,000;
37.23 	(8) $225,000 for storages with annual average storage liability of more than $400,001 
37.24 	but not more than $500,000;
37.25 	(9) $275,000 for storages with annual average storage liability of more than $500,001 
37.26 	but not more than $600,000;
37.27 	(10) $325,000 for storages with annual average storage liability of more than $600,001 
37.28 	but not more than $700,000;
37.29 	(11) $375,000 for storages with annual average storage liability of more than $700,001 
37.30 	but not more than $800,000;
38.1 	(12) $425,000 for storages with annual average storage liability of more than $800,001 
38.2 	but not more than $900,000;
38.3 	(13) $475,000 for storages with annual average storage liability of more than $900,001 
38.4 	but not more than $1,000,000; and
38.5 	(14) $500,000 for storages with annual average storage liability of more than $1,000,000.
38.6 	(b) Bonds must be continuous until canceled. To cancel a bond, a surety must provide 
38.7 	90 days' written notice of the bond's termination date to the licensee and the commissioner.
38.8 	(c) In lieu of the bond required by this subdivision, the applicant may deposit with the 
38.9 	commissioner of management and budget an irrevocable bank letter of credit as defined in 
38.10 	section 336.5-102, in the same amount as would be required for a bond.

38.11 	Sec. 41. Minnesota Statutes 2018, section 232.23, subdivision 3, is amended to read:
38.12 		Subd. 3.Grain delivered considered stored. All grain delivered to a public grain 
38.13 	warehouse operator shall be considered stored at the time of delivery, unless arrangements 
38.14 	have been made with the public grain warehouse operator prior to or at the time of delivery 
38.15 	to apply the grain on contract, for shipment or consignment or for cash sale. Grain may be 
38.16 	held in open storage or placed on a warehouse receipt. Warehouse receipts must be issued 
38.17 	for all grain held in open storage within six months of delivery to the warehouse unless the 
38.18 	depositor has signed a statement that the depositor does not desire a warehouse receipt. The 
38.19 	warehouse operator's tariff applies for any grain that is retained in open storage or under 
38.20 	warehouse receipt. All grain in temporary storage must be owned and exclusively maintained 
38.21 	by the licensee. Grain assigned to grain bank is considered stored grain.

38.22 	Sec. 42. Minnesota Statutes 2018, section 232.24, subdivision 1, is amended to read:
38.23 		Subdivision 1.Schedule of examination. A licensee under sections 232.20 to 232.24
38.24 	is subject to two examinationsone examination annually conducted by the commissioner 
38.25 	or the Agricultural Marketing Service of the United States Department of Agriculture. The 
38.26 	commissioner may, by rule, authorize one examination to be conducted by a qualified 
38.27 	nongovernmental unit. Additional exams, at the determination of the commissioner, may 
38.28 	be required.

38.29 	Sec. 43. Minnesota Statutes 2018, section 232.24, subdivision 2, is amended to read:
38.30 		Subd. 2.Financial reports. A licensee under sections 232.20 to 232.24 upon request
38.31 	must provide to the commissioner a copy of the financial reports of an audit conducted by 
39.1 	a qualified nongovernmental unit containing information the commissioner requires that 
39.2 	meet the requirements in section 223.17, subdivision 6.

39.3 	ARTICLE 3
39.4 	HOUSING APPROPRIATIONS

39.5	Section 1. HOUSING APPROPRIATIONS.
 	
39.6 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
39.7 	and for the purposes specified in this article. The appropriations are from the general fund, 
39.8 	or another named fund, and are available for the fiscal years indicated for each purpose. 
39.9 	The figures "2020" and "2021" used in this article mean that the appropriations listed under 
39.10 	them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. 
39.11 	"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" 
39.12 	is fiscal years 2020 and 2021.

39.13				APPROPRIATIONS
	
39.14				Available for the Year
	
39.15				Ending June 30
	
39.16					2020
		2021

39.17	Sec. 2. HOUSING FINANCE AGENCY

39.18	Subdivision 1.Total Appropriation
 	$
	52,798,000
	$
	52,798,000
	
39.19 	The amounts that may be spent for each 
39.20 	purpose are specified in the following 
39.21 	subdivisions.
39.22 	Unless otherwise specified, this appropriation 
39.23 	is for transfer to the housing development fund 
39.24 	for the programs specified in this section. 
39.25 	Except as otherwise indicated, this transfer is 
39.26 	part of the agency's permanent budget base.

39.27	Subd. 2.Challenge Program
 		10,675,000
		11,675,000
	
39.28 	This appropriation is for the economic 
39.29 	development and housing challenge program 
39.30 	under Minnesota Statutes, section 462A.33. 
39.31 	Of this amount, $1,208,000 each year shall be 
39.32 	made available during the first 11 months of 
39.33 	the fiscal year exclusively for housing projects 
40.1 	for American Indians. Any funds not 
40.2 	committed to housing projects for American 
40.3 	Indians in the first 11 months of the fiscal year 
40.4 	shall be available for any eligible activity 
40.5 	under Minnesota Statutes, section 462A.33.
40.6 	The base for this program in fiscal year 2022 
40.7 	and beyond is $11,675,000.

40.8	Subd. 3.Workforce Housing Development
 		2,000,000
		2,000,000
	
40.9 	This appropriation is for the workforce 
40.10 	housing development program under 
40.11 	Minnesota Statutes, section 462A.39. If 
40.12 	requested by the applicant and approved by 
40.13 	the agency, funded properties may include a 
40.14 	portion of income and rent restricted units.

40.15
40.16	Subd. 4.Manufactured Home Park 
Infrastructure Grants
 		2,500,000
		2,500,000
	
40.17 	This appropriation is for manufactured home 
40.18 	park infrastructure grants under Minnesota 
40.19 	Statutes, section 462A.2035, subdivision 1b.

40.20
40.21	Subd. 5.Housing Infrastructure Grants Pilot 
Program
 		500,000
		0
	
40.22 	This appropriation is for a pilot program to 
40.23 	provide grants to municipalities for up to 50 
40.24 	percent of the costs of infrastructure that 
40.25 	would otherwise be required to be paid by the 
40.26 	developer for new homeowner-owned housing 
40.27 	developments that are affordable to households 
40.28 	with an income of up to 130 percent of area 
40.29 	median income. The grants shall be limited to 
40.30 	16 housing units in the municipality and a 
40.31 	maximum of $10,000 per housing unit. This 
40.32 	is a onetime appropriation and is available 
40.33 	until June 30, 2021.

41.1
41.2	Subd. 6.Workforce Affordable Homeownership 
Development Program
 		1,000,000
		500,000
	
41.3 	This appropriation is for the workforce and 
41.4 	affordable homeownership development 
41.5 	program under Minnesota Statutes, section 
41.6 	462A.38. At least 50 percent of the money 
41.7 	appropriated must be for municipalities with 
41.8 	populations less than 7,500.

41.9	Subd. 7.Housing Trust Fund
 		11,646,000
		11,646,000
	
41.10 	This appropriation is for deposit in the housing 
41.11 	trust fund account created under Minnesota 
41.12 	Statutes, section 462A.201, and may be used 
41.13 	for the purposes provided in that section.

41.14	Subd. 8.Rental Assistance for Mentally Ill
 		4,088,000
		4,088,000
	
41.15 	This appropriation is for the rental housing 
41.16 	assistance program for persons with a mental 
41.17 	illness or families with an adult member with 
41.18 	a mental illness under Minnesota Statutes, 
41.19 	section 462A.2097. Among comparable 
41.20 	proposals, the agency shall prioritize those 
41.21 	proposals that target, in part, eligible persons 
41.22 	who desire to move to more integrated, 
41.23 	community-based settings.

41.24	Subd. 9.Family Homeless Prevention
 		8,519,000
		8,519,000
	
41.25 	This appropriation is for the family homeless 
41.26 	prevention and assistance programs under 
41.27 	Minnesota Statutes, section 462A.204.

41.28	Subd. 10.Home Ownership Assistance Fund
 		885,000
		885,000
	
41.29 	This appropriation is for the home ownership 
41.30 	assistance program under Minnesota Statutes, 
41.31 	section 462A.21, subdivision 8. The agency 
41.32 	shall continue to strengthen its efforts to 
41.33 	address the disparity gap in the 
41.34 	homeownership rate between white 
42.1 	households and indigenous American Indians 
42.2 	and communities of color. To better 
42.3 	understand and address the disparity gap, the 
42.4 	agency is required to collect, on a voluntary 
42.5 	basis, demographic information regarding 
42.6 	race, color, national origin, and sex of 
42.7 	applicants for agency programs intended to 
42.8 	benefit homeowners and homebuyers.

42.9	Subd. 11.Affordable Rental Investment Fund
 		3,718,000
		3,718,000
	
42.10 	(a) This appropriation is for the affordable 
42.11 	rental investment fund program under 
42.12 	Minnesota Statutes, section 462A.21, 
42.13 	subdivision 8b, to finance the acquisition, 
42.14 	rehabilitation, and debt restructuring of 
42.15 	federally assisted rental property and for 
42.16 	making equity take-out loans under Minnesota 
42.17 	Statutes, section 462A.05, subdivision 39.
42.18 	(b) The owner of federally assisted rental 
42.19 	property must agree to participate in the 
42.20 	applicable federally assisted housing program 
42.21 	and to extend any existing low-income 
42.22 	affordability restrictions on the housing for 
42.23 	the maximum term permitted. The owner must 
42.24 	also enter into an agreement that gives local 
42.25 	units of government, housing and 
42.26 	redevelopment authorities, and nonprofit 
42.27 	housing organizations the right of first refusal 
42.28 	if the rental property is offered for sale. 
42.29 	Priority must be given among comparable 
42.30 	federally assisted rental properties to 
42.31 	properties with the longest remaining term 
42.32 	under an agreement for federal assistance. 
42.33 	Priority must also be given among comparable 
42.34 	rental housing developments to developments 
42.35 	that are or will be owned by local government 
43.1 	units, a housing and redevelopment authority, 
43.2 	or a nonprofit housing organization.
43.3 	(c) The appropriation also may be used to 
43.4 	finance the acquisition, rehabilitation, and debt 
43.5 	restructuring of existing supportive housing 
43.6 	properties and naturally occurring affordable 
43.7 	housing as determined by the commissioner. 
43.8 	For purposes of this paragraph, "supportive 
43.9 	housing" means affordable rental housing with 
43.10 	links to services necessary for individuals, 
43.11 	youth, and families with children to maintain 
43.12 	housing stability.

43.13	Subd. 12.Housing Rehabilitation
 		6,015,000
		6,015,000
	
43.14 	This appropriation is for the housing 
43.15 	rehabilitation program under Minnesota 
43.16 	Statutes, section 462A.05, subdivision 14. Of 
43.17 	this amount, $2,772,000 each year is for the 
43.18 	rehabilitation of owner-occupied housing and 
43.19 	$3,243,000 each year is for the rehabilitation 
43.20 	of eligible rental housing. In administering a 
43.21 	rehabilitation program for rental housing, the 
43.22 	agency may apply the processes and priorities 
43.23 	adopted for administration of the economic 
43.24 	development and housing challenge program 
43.25 	under Minnesota Statutes, section 462A.33, 
43.26 	and may provide grants or forgivable loans if 
43.27 	approved by the agency.
43.28 	Notwithstanding any law to the contrary, 
43.29 	grants or loans under this subdivision may be 
43.30 	made without rent or income restrictions of 
43.31 	owners or tenants. To the extent practicable, 
43.32 	grants or loans must be made available 
43.33 	statewide.

44.1
44.2	Subd. 13.Homeownership Capacity, Counseling, 
and Stabilization Grants
 		1,252,000
		1,252,000
	
44.3 	This appropriation is for homeownership 
44.4 	education, counseling, and training under 
44.5 	Minnesota Statutes, section 462A.209, and for 
44.6 	capacity-building grants under Minnesota 
44.7 	Statutes, section 462A.21, subdivision 3b. The 
44.8 	commissioner shall award competitive grants 
44.9 	to nonprofit housing organizations, housing 
44.10 	and redevelopment authorities, or other 
44.11 	political subdivisions to provide intensive 
44.12 	financial education and coaching services to 
44.13 	individuals or families who have the goal of 
44.14 	homeownership and family stabilization. 
44.15 	Financial education and counseling services 
44.16 	include, but are not limited to, asset building, 
44.17 	development of spending plans, credit report 
44.18 	education, repair and rebuilding, consumer 
44.19 	protection training, and debt reduction. Priority 
44.20 	must be given to organizations that have 
44.21 	experience serving underserved populations.

44.22 	Sec. 3. DISTRIBUTION OF HOUSING INVESTMENT FUND AND HOUSING 
44.23 	AFFORDABILITY FUND.
 44.24 	For fiscal years 2020 and 2021, to the extent practicable, the commissioner of the housing 
44.25 	finance agency shall distribute the money within the Housing Investment Fund, or Pool 2, 
44.26 	and the Housing Affordability Fund, or Pool 3, equally between the Twin Cities metropolitan 
44.27 	area and the nonmetropolitan area.

44.28 	ARTICLE 4
44.29 	HOUSING STATUTORY CHANGES

44.30 	Section 1. Minnesota Statutes 2018, section 299D.085, is amended by adding a subdivision 
44.31 	to read:
44.32 		Subd. 3a.Trailer use. A vehicle or a combination of vehicles may tow a trailer during 
44.33 	the movement of an overdimensional load if:
45.1 	(1) the party involved is a building mover licensed by the commissioner of transportation 
45.2 	under section 221.81;
45.3 	(2) the building being moved is not a temporary structure;
45.4 	(3) the overdimensional load is a manufactured home, as defined under section 327.31; 
45.5 	or
45.6 	(4) the overdimensional load is a modular home, as defined under section 297A.668, 
45.7 	subdivision 8, paragraph (b).

45.8 	Sec. 2. Minnesota Statutes 2018, section 326B.815, subdivision 1, is amended to read:
45.9 		Subdivision 1.Fees. (a) For the purposes of calculating fees under section 326B.092, 
45.10 	an initial or renewed residential contractor, residential remodeler, or residential roofer license 
45.11 	is a business license. Notwithstanding section 326B.092, the licensing fee for manufactured 
45.12 	home installers under section 327B.041 is $300 $180 for a three-year period.
45.13 	(b) All initial and renewal licenses, except for manufactured home installer licenses, 
45.14 	shall be effective for two years and shall expire on March 31 of the year after the year in 
45.15 	which the application is made.
45.16 	(c) The commissioner shall in a manner determined by the commissioner, without the 
45.17 	need for any rulemaking under chapter 14, phase in the renewal of residential contractor, 
45.18 	residential remodeler, and residential roofer licenses from one year to two years. By June 
45.19 	30, 2011, all renewed residential contractor, residential remodeler, and residential roofer 
45.20 	licenses shall be two-year licenses.

45.21 	Sec. 3. Minnesota Statutes 2018, section 327.31, is amended by adding a subdivision to 
45.22 	read:
45.23 		Subd. 23.Modular home. For the purposes of this section, "modular home" means a 
45.24 	single-family dwelling constructed in accordance with applicable standards adopted in 
45.25 	Minnesota Rules, chapter 1360 or 1361, or in compliance with the 2015 Minnesota 
45.26 	Residential Code for a single-family dwelling with a floor area of 400 square feet or less. 
45.27 	The modular home must be attached to a foundation designed to the State Building Code.

45.28 	Sec. 4. [327.335] PLACEMENT OF MODULAR HOMES.
45.29 	A modular home may be placed in a manufactured home park as defined in section 
45.30 	327.14, subdivision 3. A modular home placed in a manufactured home park is a 
45.31 	manufactured home for purposes of chapters 327, 327C, and 504B, and all rights, obligations, 
46.1 	and duties under those chapters apply. A modular home may not be placed in a manufactured 
46.2 	home park without prior written approval of the park owner. Nothing in this section shall 
46.3 	be construed to inhibit the application of zoning, subdivision, architectural, or esthetic 
46.4 	requirements pursuant to chapters 394 and 462 that otherwise apply to manufactured homes 
46.5 	and manufactured home parks. A modular home placed in a manufactured home park under 
46.6 	this section shall be assessed and taxed as a manufactured home.

46.7 	Sec. 5. Minnesota Statutes 2018, section 327B.041, is amended to read:
46.8 	327B.041 MANUFACTURED HOME INSTALLERS.
46.9 	(a) Manufactured home installers are subject to all of the fees in section 326B.092 and 
46.10 	the requirements of sections 326B.802 to 326B.885, except for the following:
46.11 	(1) manufactured home installers are not subject to the continuing education requirements 
46.12 	of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education 
46.13 	requirements established in rules adopted under section 327B.10;
46.14 	(2) the examination requirement of section 326B.83, subdivision 3, for manufactured 
46.15 	home installers shall be satisfied by successful completion of a written examination 
46.16 	administered and developed specifically for the examination of manufactured home installers. 
46.17 	The examination must be administered and developed by the commissioner. The 
46.18 	commissioner and the state building official shall seek advice on the grading, monitoring, 
46.19 	and updating of examinations from the Minnesota Manufactured Housing Association;
46.20 	(3) a local government unit may not place a surcharge on a license fee, and may not 
46.21 	charge a separate fee to installers;
46.22 	(4) a dealer or distributor who does not install or repair manufactured homes is exempt 
46.23 	from licensure under sections 326B.802 to 326B.885;
46.24 	(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply; 
46.25 	and
46.26 	(6) manufactured home installers are not subject to the contractor recovery fund in 
46.27 	section 326B.89.
46.28 	(b) The commissioner may waive all or part of the requirements for licensure as a 
46.29 	manufactured home installer for any individual who holds an unexpired license or certificate 
46.30 	issued by any other state or other United States jurisdiction if the licensing requirements of 
46.31 	that jurisdiction meet or exceed the corresponding licensing requirements of the department 
46.32 	and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. For the 
47.1 	purposes of calculating fees under section 326B.092, licensure as a manufactured home 
47.2 	installer is a business license.

47.3 	Sec. 6. Minnesota Statutes 2018, section 327C.095, subdivision 4, is amended to read:
47.4 		Subd. 4.Public hearing; relocation compensation; neutral third party. Within 90 
47.5 	days after receiving notice of a closure statement, the governing body of the affected 
47.6 	municipality shall hold a public hearing to review the closure statement and any impact that 
47.7 	the park closing may have on the displaced residents and the park owner. At the time of, 
47.8 	and in the notice for, the public hearing, displaced residents must be informed that they may 
47.9 	be eligible for payments from the Minnesota manufactured home relocation trust fund under 
47.10 	section 462A.35 as compensation for reasonable relocation costs under subdivision 13, 
47.11 	paragraphs (a) and (e).
47.12 	The governing body of the municipality may also require that other parties, including 
47.13 	the municipality, but excluding the park owner or its purchaser, involved in the park closing 
47.14 	provide additional compensation to residents to mitigate the adverse financial impact of the 
47.15 	park closing upon the residents.
47.16 	At the public hearing, the municipality shall appoint a qualified neutral third party, to 
47.17 	be agreed upon by both the manufactured home park owner and manufactured home owners, 
47.18 	whose hourly cost must be reasonable and paid from the Minnesota manufactured home 
47.19 	relocation trust fund. The neutral third party shall act as a paymaster and arbitrator, with 
47.20 	decision-making authority to resolve any questions or disputes regarding any contributions 
47.21 	or disbursements to and from the Minnesota manufactured home relocation trust fund by 
47.22 	either the manufactured home park owner or the manufactured home owners. If the parties 
47.23 	cannot agree on a neutral third party, the municipality will make a determination determine 
47.24 	who shall act as the neutral third party.
47.25 	The qualified neutral third party shall be familiar with manufactured housing and the 
47.26 	requirements of this section. The neutral third party shall keep an overall receipts and cost 
47.27 	summary together with a detailed accounting, for each manufactured lot, of the payments 
47.28 	received by the manufactured home park owner, and expenses approved and payments 
47.29 	disbursed to the manufactured home owners, pursuant to subdivisions 12 and 13, as well 
47.30 	as a record of all services and hours it provided and at what hourly rate it charged to the 
47.31 	Minnesota manufactured home trust fund. This detailed accounting shall be provided to the 
47.32 	manufactured home park owner, the municipality, and the Minnesota Housing Finance 
47.33 	Agency to be included in its yearly October 15 report as required in subdivision 13, paragraph 
48.1 	(h), not later than 30 days after the expiration of the nine-month notice provided in the 
48.2 	closure statement.

48.3 	Sec. 7. Minnesota Statutes 2018, section 327C.095, subdivision 6, is amended to read:
48.4 		Subd. 6.Intent to convert use of park at time of purchase. Before the execution of 
48.5 	an agreement to purchase a manufactured home park, the purchaser must notify the park 
48.6 	owner, in writing, if the purchaser intends to close the manufactured home park or convert 
48.7 	it to another use within one year of the execution of the agreement. The park owner shall 
48.8 	provide a resident of each manufactured home with a 45-day written notice of the purchaser's 
48.9 	intent to close the park or convert it to another use. The notice must state that the park owner 
48.10 	will provide information on the cash price and the terms and conditions of the purchaser's 
48.11 	offer to residents requesting the information. The notice must be sent by first class mail to 
48.12 	a resident of each manufactured home in the park. The notice period begins on the postmark 
48.13 	date affixed to the notice and ends 45 days after it begins. During the notice period required 
48.14 	in this subdivision, the owners of at least 51 percent of the manufactured homes in the park 
48.15 	or a nonprofit organization which has the written permission of the owners of at least 51 
48.16 	percent of the manufactured homes in the park to represent them in the acquisition of the 
48.17 	park shall have the right to meet the cash price and execute an agreement to purchase the 
48.18 	park for the purposes of keeping the park as a manufactured housing community, provided 
48.19 	that the owners or nonprofit organization will covenant and warrant to the park owner in 
48.20 	the agreement that they will continue to operate the park for not less than six years from 
48.21 	the date of closing. The covenant must be in writing and must be recorded with the office 
48.22 	of the county recorder or registrar of titles to remain in effect. The park owner must accept 
48.23 	the offer if it meets the cash price and the same terms and conditions set forth in the 
48.24 	purchaser's offer except that the seller is not obligated to provide owner financing. For 
48.25 	purposes of this section, cash price means the cash price offer or equivalent cash offer as 
48.26 	defined in section 500.245, subdivision 1, paragraph (d).

48.27 	Sec. 8. Minnesota Statutes 2018, section 327C.095, subdivision 12, is amended to read:
48.28 		Subd. 12.Payment to the Minnesota manufactured home relocation trust fund. (a) 
48.29 	If a manufactured home owner is required to move due to the conversion of all or a portion 
48.30 	of a manufactured home park to another use, the closure of a park, or cessation of use of 
48.31 	the land as a manufactured home park, the manufactured park owner shall, upon the change 
48.32 	in use, pay to the commissioner of management and budget for deposit in the Minnesota 
48.33 	manufactured home relocation trust fund under section 462A.35, the lesser amount of the 
48.34 	actual costs of moving or purchasing the manufactured home approved by the neutral third 
49.1 	party and paid by the Minnesota Housing Finance Agency under subdivision 13, paragraph 
49.2 	(a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each 
49.3 	multisection manufactured home, for which a manufactured home owner has made 
49.4 	application for payment of relocation costs under subdivision 13, paragraph (c). The 
49.5 	manufactured home park owner shall make payments required under this section to the 
49.6 	Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice 
49.7 	from the neutral third party.
49.8 	(b) A manufactured home park owner is not required to make the payment prescribed 
49.9 	under paragraph (a), nor is a manufactured home owner entitled to compensation under 
49.10 	subdivision 13, paragraph (a) or (e), if:
49.11 	(1) the manufactured home park owner relocates the manufactured home owner to 
49.12 	another space in the manufactured home park or to another manufactured home park at the 
49.13 	park owner's expense;
49.14 	(2) the manufactured home owner is vacating the premises and has informed the 
49.15 	manufactured home park owner or manager of this prior to the mailing date of the closure 
49.16 	statement under subdivision 1;
49.17 	(3) a manufactured home owner has abandoned the manufactured home, or the 
49.18 	manufactured home owner is not current on the monthly lot rental, personal property taxes;
49.19 	(4) the manufactured home owner has a pending eviction action for nonpayment of lot 
49.20 	rental amount under section 327C.09, which was filed against the manufactured home owner 
49.21 	prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery 
49.22 	has been ordered by the district court;
49.23 	(5) the conversion of all or a portion of a manufactured home park to another use, the 
49.24 	closure of a park, or cessation of use of the land as a manufactured home park is the result 
49.25 	of a taking or exercise of the power of eminent domain by a governmental entity or public 
49.26 	utility; or
49.27 	(6) the owner of the manufactured home is not a resident of the manufactured home 
49.28 	park, as defined in section 327C.01, subdivision 9, or; the owner of the manufactured home 
49.29 	is a resident, but came to reside in the manufactured home park after the mailing date of 
49.30 	the closure statement under subdivision 1; or the owner of the manufactured home has not 
49.31 	paid the $15 assessment under paragraph (c).
49.32 	(c) If the unencumbered fund balance in the manufactured home relocation trust fund 
49.33 	is less than $1,000,000 as of June 30 of each year, the commissioner of management and 
50.1 	budget shall assess each manufactured home park owner by mail the total amount of $15 
50.2 	for each licensed lot in their park, payable on or before September November 15 of that 
50.3 	year. The commissioner of management Failure to notify and budget shall deposit any 
50.4 	payments in the Minnesota timely assess the manufactured home relocation trust fund. On 
50.5 	or before July 15 of park owner by August 30 of any year shall waive the assessment and 
50.6 	payment obligations of the manufactured home park owner for that year. Together with said 
50.7 	assessment notice, each year, the commissioner of management and budget shall prepare 
50.8 	and distribute to park owners a letter explaining whether funds are being collected for that 
50.9 	year, information about the collection, an invoice for all licensed lots, and a sample form 
50.10 	for the park owners to collect information on which park residents have been accounted 
50.11 	for. If assessed under this paragraph, the park owner may recoup the cost of the $15 
50.12 	assessment as a lump sum or as a monthly fee of no more than $1.25 collected from park 
50.13 	residents together with monthly lot rent as provided in section 327C.03, subdivision 6. Park 
50.14 	owners may adjust payment for lots in their park that are vacant or otherwise not eligible 
50.15 	for contribution to the trust fund under section 327C.095, subdivision 12, paragraph (b), 
50.16 	and for park residents who have not paid the $15 assessment to the park owner by October 
50.17 	15, and deduct from the assessment accordingly. The commissioner of management and 
50.18 	budget shall deposit any payments in the Minnesota manufactured home relocation trust 
50.19 	fund.
50.20 	(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by 
50.21 	the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action 
50.22 	in a court of appropriate jurisdiction. The court may award a prevailing party reasonable 
50.23 	attorney fees, court costs, and disbursements.

50.24 	Sec. 9. Minnesota Statutes 2018, section 327C.095, subdivision 13, is amended to read:
50.25 		Subd. 13.Change in use, relocation expenses; payments by park owner. (a) If a 
50.26 	manufactured home owner is required to relocate due to the conversion of all or a portion 
50.27 	of a manufactured home park to another use, the closure of a manufactured home park, or 
50.28 	cessation of use of the land as a manufactured home park under subdivision 1, and the 
50.29 	manufactured home owner complies with the requirements of this section, the manufactured 
50.30 	home owner is entitled to payment from the Minnesota manufactured home relocation trust 
50.31 	fund equal to the manufactured home owner's actual relocation costs for relocating the 
50.32 	manufactured home to a new location within a 2550-mile radius of the park that is being 
50.33 	closed, up to a maximum of $7,000 for a single-section and $12,500 for a multisection 
50.34 	manufactured home. The actual relocation costs must include the reasonable cost of taking 
50.35 	down, moving, and setting up the manufactured home, including equipment rental, utility 
51.1 	connection and disconnection charges, minor repairs, modifications necessary for 
51.2 	transportation of the home, necessary moving permits and insurance, moving costs for any 
51.3 	appurtenances, which meet applicable local, state, and federal building and construction 
51.4 	codes.
51.5 	(b) A manufactured home owner is not entitled to compensation under paragraph (a) if 
51.6 	the manufactured home park owner is not required to make a payment to the Minnesota 
51.7 	manufactured home relocation trust fund under subdivision 12, paragraph (b).
51.8 	(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota 
51.9 	manufactured home relocation trust fund, the manufactured home owner shall submit to the 
51.10 	neutral third party and the Minnesota Housing Finance Agency, with a copy to the park 
51.11 	owner, an application for payment, which includes:
51.12 	(1) a copy of the closure statement under subdivision 1;
51.13 	(2) a copy of the contract with a moving or towing contractor, which includes the 
51.14 	relocation costs for relocating the manufactured home;
51.15 	(3) a statement with supporting materials of any additional relocation costs as outlined 
51.16 	in subdivision 1;
51.17 	(4) a statement certifying that none of the exceptions to receipt of compensation under 
51.18 	subdivision 12, paragraph (b), apply to the manufactured home owner;
51.19 	(5) a statement from the manufactured park owner that the lot rental is current and that 
51.20 	the annual $15 payments payment to the Minnesota manufactured home relocation trust 
51.21 	fund have has been paid when due; and
51.22 	(6) a statement from the county where the manufactured home is located certifying that 
51.23 	personal property taxes for the manufactured home are paid through the end of that year.
51.24 	(d) The neutral third party shall promptly process all payments for completed applications 
51.25 	within 14 days. If the neutral third party has acted reasonably and does not approve or deny 
51.26 	payment within 45 days after receipt of the information set forth in paragraph (c), the 
51.27 	payment is deemed approved. Upon approval and request by the neutral third party, the 
51.28 	Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 percent 
51.29 	of the contract price payable to the mover and towing contractor for relocating the 
51.30 	manufactured home in the amount of the actual relocation cost, plus a check to the home 
51.31 	owner for additional certified costs associated with third-party vendors, that were necessary 
51.32 	in relocating the manufactured home. The moving or towing contractor shall receive 50 
51.33 	percent upon execution of the contract and 50 percent upon completion of the relocation 
52.1 	and approval by the manufactured home owner. The moving or towing contractor may not 
52.2 	apply the funds to any other purpose other than relocation of the manufactured home as 
52.3 	provided in the contract. A copy of the approval must be forwarded by the neutral third 
52.4 	party to the park owner with an invoice for payment of the amount specified in subdivision 
52.5 	12, paragraph (a).
52.6 	(e) In lieu of collecting a relocation payment from the Minnesota manufactured home 
52.7 	relocation trust fund under paragraph (a), the manufactured home owner may collect an 
52.8 	amount from the fund after reasonable efforts to relocate the manufactured home have failed 
52.9 	due to the age or condition of the manufactured home, or because there are no manufactured 
52.10 	home parks willing or able to accept the manufactured home within a 25-mile radius. A 
52.11 	manufactured home owner may tender title of the manufactured home in the manufactured 
52.12 	home park to the manufactured home park owner, and collect an amount to be determined 
52.13 	by an independent appraisal. The appraiser must be agreed to by both the manufactured 
52.14 	home park owner and the manufactured home owner. If the appraised market value cannot 
52.15 	be determined, the tax market value, averaged over a period of five years, can be used as a 
52.16 	substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a 
52.17 	single-section and $14,500 for a multisection manufactured home. The minimum amount 
52.18 	that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a 
52.19 	multisection manufactured home. The manufactured home owner shall deliver to the 
52.20 	manufactured home park owner the current certificate of title to the manufactured home 
52.21 	duly endorsed by the owner of record, and valid releases of all liens shown on the certificate 
52.22 	of title, and a statement from the county where the manufactured home is located evidencing 
52.23 	that the personal property taxes have been paid. The manufactured home owner's application 
52.24 	for funds under this paragraph must include a document certifying that the manufactured 
52.25 	home cannot be relocated, that the lot rental is current, that the annual $15 payments to the 
52.26 	Minnesota manufactured home relocation trust fund have been paid when due, that the 
52.27 	manufactured home owner has chosen to tender title under this section, and that the park 
52.28 	owner agrees to make a payment to the commissioner of management and budget in the 
52.29 	amount established in subdivision 12, paragraph (a), less any documented costs submitted 
52.30 	to the neutral third party, required for demolition and removal of the home, and any debris 
52.31 	or refuse left on the lot, not to exceed $1,000 $3,000. The manufactured home owner must 
52.32 	also provide a copy of the certificate of title endorsed by the owner of record, and certify 
52.33 	to the neutral third party, with a copy to the park owner, that none of the exceptions to 
52.34 	receipt of compensation under subdivision 12, paragraph (b), clauses (1) to (6), apply to the 
52.35 	manufactured home owner, and that the home owner will vacate the home within 60 days 
53.1 	after receipt of payment or the date of park closure, whichever is earlier, provided that the 
53.2 	monthly lot rent is kept current.
53.3 	(f) The Minnesota Housing Finance Agency must make a determination of the amount 
53.4 	of payment a manufactured home owner would have been entitled to under a local ordinance 
53.5 	in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured home owner's 
53.6 	compensation for relocation costs from the fund under section 462A.35, is the greater of 
53.7 	the amount provided under this subdivision, or the amount under the local ordinance in 
53.8 	effect on May 26, 2007, that is applicable to the manufactured home owner. Nothing in this 
53.9 	paragraph is intended to increase the liability of the park owner.
53.10 	(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be 
53.11 	liable to any person for recovery if the funds in the Minnesota manufactured home relocation 
53.12 	trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance 
53.13 	Agency shall keep a record of the time and date of its approval of payment to a claimant.
53.14 	(h)(1) By October 15, 2019, the Minnesota Housing Finance Agency shall post on its 
53.15 	website and report to the chairs of the senate Finance Committee and house of representatives 
53.16 	Ways and Means Committee on the Minnesota manufactured home relocation trust fund, 
53.17 	including the account balance, payments to claimants, the amount of any advances to the 
53.18 	fund, the amount of any insufficiencies encountered during the previous calendar year, and 
53.19 	any itemized administrative charges or expenses deducted from the trust fund balance. If 
53.20 	sufficient funds become available, the Minnesota Housing Finance Agency shall pay the 
53.21 	manufactured home owner whose unpaid claim is the earliest by time and date of approval.
53.22 	(h) (2) Beginning in 2019, the Minnesota Housing Finance Agency shall post on its 
53.23 	website and report to the chairs of the senate Finance Committee and house of representatives 
53.24 	Ways and Means Committee by January October 15 of each year on the Minnesota 
53.25 	manufactured home relocation trust fund, including the aggregate account balance, the 
53.26 	aggregate assessment payments received, summary information regarding each closed park 
53.27 	including the total payments to claimants and payments received from each closed park, 
53.28 	the amount of any advances to the fund, the amount of any insufficiencies encountered 
53.29 	during the previous calendar fiscal year, reports of neutral third parties provided pursuant 
53.30 	to subdivision 4, and any itemized administrative charges or expenses deducted from the 
53.31 	trust fund balance, all of which should be reconciled to the previous year's trust fund balance. 
53.32 	If sufficient funds become available, the Minnesota Housing Finance Agency shall pay the 
53.33 	manufactured home owner whose unpaid claim is the earliest by time and date of approval.

54.1 	Sec. 10. Minnesota Statutes 2018, section 327C.095, is amended by adding a subdivision 
54.2 	to read:
54.3 		Subd. 16.Reporting of licensed manufactured home parks. The Department of Health 
54.4 	or, if applicable, local units of government that have entered into a delegation of authority 
54.5 	agreement with the Department of Health as provided in section 145A.07 shall provide, by 
54.6 	March 31 of each year, a list of names and addresses of the manufactured home parks 
54.7 	licensed in the previous year, and for each manufactured home park, the current licensed 
54.8 	owner, the owner's address, the number of licensed manufactured home lots, and other data 
54.9 	as they may request for the Department of Management and Budget to invoice each licensed 
54.10 	manufactured home park in the state of Minnesota.

54.11 	Sec. 11. Minnesota Statutes 2018, section 428A.11, subdivision 4, is amended to read:
54.12 		Subd. 4.Housing improvements. "Housing improvements" has the meaning given in 
54.13 	the city's enabling ordinance. Housing improvements may include improvements to common 
54.14 	elements of a condominium or other common interest community, or to a manufactured 
54.15 	home park.

54.16 	Sec. 12. Minnesota Statutes 2018, section 428A.11, subdivision 6, is amended to read:
54.17 		Subd. 6.Housing unit. "Housing unit" means real property and improvements thereon 
54.18 	consisting of a one-dwelling unit, or an apartment or unit as described in chapter 515, 515A, 
54.19 	or 515B, respectively, or a manufactured home in a manufactured home park that is occupied 
54.20 	by a person or family for use as a residence.

54.21 	Sec. 13. Minnesota Statutes 2018, section 462A.2035, subdivision 1a, is amended to read:
54.22 		Subd. 1a.Individual assistance grants. Eligible recipients may use individual assistance 
54.23 	grants and loans under this program to:
54.24 	(1) provide current residents of manufactured home parks with buy-out assistance not 
54.25 	to exceed $4,000 per home with preference given to older manufactured homes; and
54.26 	(2) provide down-payment assistance for the purchase of new and preowned manufactured 
54.27 	homes that comply with the current version of the State Building United States Department 
54.28 	of Housing and Urban Development's Manufactured Housing Code in effect at the time of 
54.29 	the sale, not to exceed $10,000 per home.

55.1 	Sec. 14. Minnesota Statutes 2018, section 462A.2035, subdivision 1b, is amended to read:
55.2 		Subd. 1b.Manufactured home park infrastructure grants. Eligible recipients may 
55.3 	use manufactured home park infrastructure grants under this program for:
55.4 	(1) acquisition of and improvements in manufactured home parks; and
55.5 	(2) infrastructure, including storm shelters and community facilities.

55.6 	Sec. 15. Minnesota Statutes 2018, section 462A.209, subdivision 8, is amended to read:
55.7 		Subd. 8.Report. (a) By January 10 of every year, each nonprofit organization or political 
55.8 	subdivision that delivers services under this section and capacity building under section 
55.9 	462A.21, subdivision 3b, must submit a report to the agency that summarizes the number 
55.10 	of people served and the sources and amounts of nonstate money used to fund the services. 
55.11 	The report must include, at a minimum, the following information:
55.12 	(1) details of program costs;
55.13 	(2) the number of staff, both within the organization and any outside organization;
55.14 	(3) the number of program participants;
55.15 	(4) the demographic information including, but not limited to, race, age, gender, and 
55.16 	income of program participants;
55.17 	(5) a list of any and all subgrantees receiving funds from the program, as well as the 
55.18 	amount of funding received;
55.19 	(6) information about other sources of funding including other public or private funding 
55.20 	or in-kind donations;
55.21 	(7) evidence that the organization administering a program or a subgrantee of a program  
55.22 	is in good standing with the Minnesota Secretary of State and the Minnesota Department 
55.23 	of Revenue;
55.24 	(8) a short description of what each program does; and
55.25 	(9) to the extent practicable, quantifiable measures of program success.
55.26 	(b) The agency shall annually submit a report containing the information received from 
55.27 	nonprofit organizations and political subdivisions under paragraph (a) to the legislature
55.28 	members of the legislative housing policy and finance committees and divisions by February 
55.29 	15.
56.1 	(c) A program required to report under paragraph (a) is ineligible for future state funding 
56.2 	if it does not submit all of the information required under paragraph (a).

56.3 	Sec. 16. Minnesota Statutes 2018, section 462A.22, subdivision 9, is amended to read:
56.4 		Subd. 9.Biennial report. The agency shall also submit a biennial report of its activities 
56.5 	and receipts, and a plan for the next biennium, to the governor and the legislature on or 
56.6 	before February 15 in each odd-numbered year. The report shall include: (1) the distribution 
56.7 	of money under each agency program by county, except for counties containing a city of 
56.8 	the first class, where the distribution shall be reported by municipality; and (2) the cost per 
56.9 	unit of housing and the cost per square foot of housing financed under each agency program.
56.10 	In addition, the report shall include the cost to the agency of the issuance of its bonds 
56.11 	for each issue in the biennium, along with comparable information for other state housing 
56.12 	finance agencies.

56.13 	Sec. 17. Minnesota Statutes 2018, section 462A.24, is amended to read:
56.14 	462A.24 CONSTRUCTION; GRANTS AND LOANS; PRIORITIES.
56.15 	(a) This chapter is necessary for the welfare of the state of Minnesota and its inhabitants; 
56.16 	therefore, it shall be liberally construed to effect its purpose.
56.17 	(b) To the extent practicable, grants and loans shall be made so that an approximately 
56.18 	equal amount of financing is provided in the metropolitan area and in the nonmetropolitan 
56.19 	area.
56.20 	(c) Programs of the agency shall give priority to projects in communities with lower 
56.21 	infrastructure development costs.
56.22 	(d) After final decisions are made on applications for programs of the agency, the results 
56.23 	of any quantitative scoring system used to rank applications shall be posted on the agency 
56.24 	website.

56.25 	Sec. 18. Minnesota Statutes 2018, section 462A.33, subdivision 1, is amended to read:
56.26 		Subdivision 1.Created. The economic development and housing challenge program is 
56.27 	created to be administered by the agency. Notwithstanding section 462A.24, this section 
56.28 	shall be construed based on the specific language within this section and within an 
56.29 	appropriation pursuant to this section.
56.30 	(a) The program shall provide grants or loans for the purpose of construction, acquisition, 
56.31 	rehabilitation, demolition or removal of existing structures, construction financing, permanent 
57.1 	financing, interest rate reduction, refinancing, and gap financing of housing or manufactured 
57.2 	home parks, as defined in section 327C.01, to support economic development and 
57.3 	redevelopment activities or job creation or job preservation within a community or region 
57.4 	by meeting locally identified housing needs. "Locally identified housing needs" means 
57.5 	housing for the area work force supported by the local municipality, housing redevelopment 
57.6 	authority, economic development authority, or other political subdivision responsible for 
57.7 	housing.
57.8 	Gap financing is either:
57.9 	(1) the difference between the costs of the property, including acquisition, demolition, 
57.10 	rehabilitation, and construction, and the market value of the property upon sale; or
57.11 	(2) the difference between the cost of the property and the amount the targeted household 
57.12 	can afford for housing, based on industry standards and practices.
57.13 	(b) Preference for grants and loans shall be given to comparable proposals that include 
57.14 	regulatory changes or waivers that result in identifiable cost avoidance or cost reductions, 
57.15 	such as increased density, flexibility in site development standards, or zoning code 
57.16 	requirements. Preference must also be given among comparable proposals to proposals for 
57.17 	projects that are accessible to transportation systems, jobs, schools, and other services.
57.18 	(c) If a grant or loan is used for demolition or removal of existing structures, the cleared 
57.19 	land must be used for the construction of housing to be owned or rented by persons who 
57.20 	meet the income limits of this section or for other housing-related purposes that primarily 
57.21 	benefit the persons residing in the adjacent housing. In making selections for grants or loans 
57.22 	for projects that demolish affordable housing units, the agency must review the potential 
57.23 	displacement of residents and consider the extent to which displacement of residents is 
57.24 	minimized.

57.25 	Sec. 19. Minnesota Statutes 2018, section 462A.33, subdivision 2, is amended to read:
57.26 		Subd. 2.Eligible recipients. Challenge grants or loans may be made to a city, a federally 
57.27 	recognized American Indian tribe or subdivision located in Minnesota, a tribal housing 
57.28 	corporation, a private developer, a nonprofit organization, or the owner of the housing or 
57.29 	the manufactured home park, including individuals. For the purpose of this section, "city" 
57.30 	has the meaning given it in section 462A.03, subdivision 21. To the extent practicable, 
57.31 	grants and loans shall be made so that an approximately equal number of housing units are 
57.32 	financed in the metropolitan area and in the nonmetropolitan area.

58.1 	Sec. 20. Minnesota Statutes 2018, section 462A.33, subdivision 3, is amended to read:
58.2 		Subd. 3.Contribution requirement. Fifty percent of the funds appropriated for this 
58.3 	section must be used for challenge grants or loans for housing proposals with financial or 
58.4 	in-kind contributions from nonstate resources that reduce the need for deferred loan or grant 
58.5 	funds from state resources. Challenge grants or loans must be used for economically viable 
58.6 	homeownership or rental housing proposals that address the housing needs of the local work 
58.7 	force. "Housing needs of the local work force" means one or more businesses located in 
58.8 	the project area or within 25 miles of the area that employs a minimum of 20 full-time 
58.9 	equivalent employees in aggregate and have provided a written statement to the local housing 
58.10 	authority indicating that the lack of available housing has impeded their ability to recruit 
58.11 	and hire employees.
58.12 	Among comparable proposals, preference must be given to proposals that include 
58.13 	contributions from nonstate resources for the greatest portion of the total development cost. 
58.14 	Comparable proposals with contributions from local units of government or private 
58.15 	philanthropic, religious, or charitable organizations must be given preference in awarding 
58.16 	grants or loans.
58.17 	For the purpose of this subdivision, a contribution may consist partially or wholly of the 
58.18 	premium paid for federal housing tax credits.

58.19 	Sec. 21. Minnesota Statutes 2018, section 462A.37, subdivision 2, is amended to read:
58.20 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
58.21 	principal amount of housing infrastructure bonds in one or more series to which the payment 
58.22 	made under this section may be pledged. The housing infrastructure bonds authorized in 
58.23 	this subdivision may be issued to fund loans, or grants for the purposes of clause (4), on 
58.24 	terms and conditions the agency deems appropriate, made for one or more of the following 
58.25 	purposes:
58.26 	(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive 
58.27 	housing for individuals and families who are without a permanent residence;
58.28 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned 
58.29 	housing to be used for affordable rental housing and the costs of new construction of rental 
58.30 	housing on abandoned or foreclosed property where the existing structures will be demolished 
58.31 	or removed;
58.32 	(3) to finance that portion of the costs of acquisition of property that is attributable to 
58.33 	the land to be leased by community land trusts to low- and moderate-income homebuyers;
59.1 	(4) to finance that portion of the acquisition, improvement, and infrastructure of 
59.2 	manufactured home parks under section 462A.2035, subdivision 1b, that is attributable to 
59.3 	land to be leased to low- and moderate-income manufactured home owners;
59.4 	(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
59.5 	of senior housing; and
59.6 	(6) to finance the costs of acquisition and rehabilitation of federally assisted rental 
59.7 	housing and for the refinancing of costs of the construction, acquisition, and rehabilitation 
59.8 	of federally assisted rental housing, including providing funds to refund, in whole or in part, 
59.9 	outstanding bonds previously issued by the agency or another government unit to finance 
59.10 	or refinance such costs.
59.11 	(b) Among comparable proposals for permanent supportive housing, preference shall 
59.12 	be given to permanent supportive housing for veterans and other individuals or families 
59.13 	who:
59.14 	(1) either have been without a permanent residence for at least 12 months or at least four 
59.15 	times in the last three years; or
59.16 	(2) are at significant risk of lacking a permanent residence for 12 months or at least four 
59.17 	times in the last three years.
59.18 	(c) Among comparable proposals for senior housing, the agency must give priority to 
59.19 	requests for projects that:
59.20 	(1) demonstrate a commitment to maintaining the housing financed as affordable to 
59.21 	seniors;
59.22 	(2) leverage other sources of funding to finance the project, including the use of 
59.23 	low-income housing tax credits;
59.24 	(3) provide access to services to residents and demonstrate the ability to increase physical 
59.25 	supports and support services as residents age and experience increasing levels of disability;
59.26 	(4) provide a service plan containing the elements of clause (3) reviewed by the housing 
59.27 	authority, economic development authority, public housing authority, or community 
59.28 	development agency that has an area of operation for the jurisdiction in which the project 
59.29 	is located; and
59.30 	(5) include households with incomes that do not exceed 30 percent of the median 
59.31 	household income for the metropolitan area.
60.1 	To the extent practicable, the agency shall balance the loans made between projects in the 
60.2 	metropolitan area and projects outside the metropolitan area. Of the loans made to projects 
60.3 	outside the metropolitan area, the agency shall, to the extent practicable, balance the loans 
60.4 	made between projects in counties or cities with a population of 20,000 or less, as established 
60.5 	by the most recent decennial census, and projects in counties or cities with populations in 
60.6 	excess of 20,000.

60.7 	Sec. 22. Minnesota Statutes 2018, section 462A.38, subdivision 1, is amended to read:
60.8 		Subdivision 1.Establishment. A workforce and affordable homeownership development 
60.9 	program is established to award homeownership development grants to cities, tribal 
60.10 	governments, nonprofit organizations, cooperatives created under chapter 308A or 308B, 
60.11 	and community land trusts created for the purposes outlined in section 462A.31, subdivision 
60.12 	1, for development of workforce and affordable homeownership projects. The purpose of 
60.13 	the program is to increase the supply of workforce and affordable, owner-occupied 
60.14 	multifamily or single-family housing throughout Minnesota.

60.15 	Sec. 23. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
60.16 	to read:
60.17 		Subd. 1a.Aggregate bond limitation. "Aggregate bond limitation" means up to 55 
60.18 	percent of the reasonably expected aggregate basis of a residential rental project and the 
60.19 	land on which the project is or will be located.

60.20 	Sec. 24. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
60.21 	to read:
60.22 		Subd. 1b.AMI. "AMI" means the area median income for the applicable county or 
60.23 	metropolitan area as published by the Department of Housing and Urban Development, as 
60.24 	adjusted for household size.

60.25 	Sec. 25. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
60.26 	to read:
60.27 		Subd. 12a.LIHTC. "LIHTC" means low-income housing tax credits under section 42 
60.28 	of the Internal Revenue Code of 1986, as amended.

61.1 	Sec. 26. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
61.2 	to read:
61.3 		Subd. 21a.Preservation project. "Preservation project" means any residential rental 
61.4 	project, regardless of whether or not such project is restricted to persons of a certain age or 
61.5 	older, that is expected to generate low-income housing tax credits under section 42 of the 
61.6 	Internal Revenue Code of 1986, as amended, and (1) receives federal project-based rental 
61.7 	assistance, or (2) is funded through a loan from or guaranteed by the United States 
61.8 	Department of Agriculture's Rural Development Program. In addition, to qualify as a 
61.9 	preservation project, the amount of bonds requested in the application must not exceed the 
61.10 	aggregate bond limitation.

61.11 	Sec. 27. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
61.12 	to read:
61.13 		Subd. 30.30 percent AMI residential rental project. "30 percent AMI residential 
61.14 	rental project" means a residential rental project that does not otherwise qualify as a 
61.15 	preservation project, is expected to generate low-income housing tax credits under section 
61.16 	42 of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential 
61.17 	units, and:
61.18 	(1) all the residential units of the project:
61.19 	(i) are reserved for tenants whose income, on average, is 30 percent of AMI or less;
61.20 	(ii) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code 
61.21 	of 1986, as amended; and
61.22 	(iii) are subject to rent and income restrictions for a period of not less than 30 years; or
61.23 	(2)(i) is located outside of the metropolitan area as defined in section 473.121, subdivision 
61.24 	2, and within a county or metropolitan area that has a current median area gross income 
61.25 	that is less than the statewide area median income for Minnesota;
61.26 	(ii) all of the units of the project are rent-restricted in accordance with section 42(g)(2) 
61.27 	of the Internal Revenue Code of 1986, as amended; and
61.28 	(iii) all of the units of the project are subject to the applicable rent and income restrictions 
61.29 	for a period of not less than 30 years.
61.30 	In addition, to qualify as a 30 percent AMI residential project, the amount of bonds 
61.31 	requested in the application must not exceed the aggregate bond limitation.

62.1 	Sec. 28. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
62.2 	to read:
62.3 		Subd. 31.50 percent AMI residential rental project. "50 percent AMI residential 
62.4 	rental project" means a residential rental project that does not qualify as a preservation 
62.5 	project or 30 percent AMI residential rental project, is expected to generate low-income 
62.6 	housing tax credits under section 42 of the Internal Revenue Code of 1986, as amended, 
62.7 	from 100 percent of its residential units, and in which all the residential units of the project:
62.8 	(1) are reserved for tenants whose income, on average, is 50 percent of AMI or less;
62.9 	(2) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code 
62.10 	of 1986, as amended; and
62.11 	(3) are subject to rent and income restrictions for a period of not less than 30 years.
62.12 	In addition, to qualify as a 50 percent AMI residential rental project, the amount of bonds 
62.13 	requested in the application must not exceed the aggregate bond limitation.

62.14 	Sec. 29. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
62.15 	to read:
62.16 		Subd. 32.100 percent LIHTC project. "100 percent LIHTC project" means a residential 
62.17 	rental project that is expected to generate low-income housing tax credits under section 42 
62.18 	of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential units 
62.19 	and does not otherwise qualify as a preservation project, 30 percent AMI residential rental 
62.20 	project, or 50 percent AMI residential rental project. In addition, to qualify as a 100 percent 
62.21 	LIHTC project, the amount of bonds requested in the application must not exceed the 
62.22 	aggregate bond limitation.

62.23 	Sec. 30. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
62.24 	to read:
62.25 		Subd. 33.20 percent LIHTC project. "20 percent LIHTC project" means a residential 
62.26 	rental project that is expected to generate low-income housing tax credits under section 42 
62.27 	of the Internal Revenue Code of 1986, as amended, from at least 20 percent of its residential 
62.28 	units and does not otherwise qualify as a preservation project, 30 percent AMI residential 
62.29 	rental project, 50 percent AMI residential rental project, or 100 percent LIHTC project. In 
62.30 	addition, to qualify as a 20 percent LIHTC project, the amount of bonds requested in the 
62.31 	application must not exceed the aggregate bond limitation.

63.1 	Sec. 31. Minnesota Statutes 2018, section 474A.03, subdivision 1, is amended to read:
63.2 		Subdivision 1.Under federal tax law; allocations. At the beginning of each calendar 
63.3 	year after December 31, 2001, the commissioner shall determine the aggregate dollar amount 
63.4 	of the annual volume cap under federal tax law for the calendar year, and of this amount 
63.5 	the commissioner shall make the following allocation:
63.6 	(1) $74,530,000 to the small issue pool;
63.7 	(2) $122,060,000 to the housing pool, of which 31 percent of the adjusted allocation is 
63.8 	reserved until the last Monday in July for single-family housing programs;
63.9 	(3) $12,750,000 to the public facilities pool; and
63.10 	(4) amounts to be allocated as provided in subdivision 2a.
63.11 	If the annual volume cap is greater or less than the amount of bonding authority allocated 
63.12 	under clauses (1) to (4) and subdivision 2a, paragraph (a), clauses (1) to (4), the allocation 
63.13 	must be adjusted so that each adjusted allocation is the same percentage of the annual volume 
63.14 	cap as each original allocation is of the total bonding authority originally allocated.

63.15 	Sec. 32. Minnesota Statutes 2018, section 474A.061, subdivision 1, is amended to read:
63.16 		Subdivision 1.Allocation application; small issue pool and public facilities pool. (a) 
63.17 	For any requested allocations from the small issue pool and the public facilities pool, an 
63.18 	issuer may apply for an allocation under this section by submitting to the department an 
63.19 	application on forms provided by the department, accompanied by (1) a preliminary 
63.20 	resolution, (2) a statement of bond counsel that the proposed issue of obligations requires 
63.21 	an allocation under this chapter and the Internal Revenue Code, (3) the type of qualified 
63.22 	bonds to be issued, (4) an application deposit in the amount of one percent of the requested 
63.23 	allocation before the last Monday in July, or in the amount of two percent of the requested 
63.24 	allocation on or after the last Monday in July, and (5) a public purpose scoring worksheet 
63.25 	for manufacturing project and enterprise zone facility project applications, and (6) for 
63.26 	residential rental projects, a statement from the applicant or bond counsel as to whether the 
63.27 	project preserves existing federally subsidized housing for residential rental project 
63.28 	applications and whether the project is restricted to persons who are 55 years of age or older. 
63.29 	The issuer must pay the application deposit by a check made payable to the Department of 
63.30 	Management and Budget. The Minnesota Housing Finance Agency, the Minnesota Rural 
63.31 	Finance Authority, and the Minnesota Office of Higher Education may apply for and receive 
63.32 	an allocation under this section without submitting an application deposit.
64.1 	(b) An entitlement issuer may not apply for an allocation from the public facilities pool
64.2 	under this subdivision unless it has either permanently issued bonds equal to the amount of 
64.3 	its entitlement allocation for the current year plus any amount of bonding authority carried 
64.4 	forward from previous years or returned for reallocation all of its unused entitlement 
64.5 	allocation. An entitlement issuer may not apply for an allocation from the housing pool 
64.6 	unless it either has permanently issued bonds equal to any amount of bonding authority 
64.7 	carried forward from a previous year or has returned for reallocation any unused bonding 
64.8 	authority carried forward from a previous year. For purposes of this subdivision, its 
64.9 	entitlement allocation includes an amount obtained under section 474A.04, subdivision 6. 
64.10 	This paragraph does not apply to an application from the Minnesota Housing Finance Agency 
64.11 	for an allocation under subdivision 2a for cities who choose to have the agency issue bonds 
64.12 	on their behalf.
64.13 	(c) If an application is rejected under this section, the commissioner must notify the 
64.14 	applicant and return the application deposit to the applicant within 30 days unless the 
64.15 	applicant requests in writing that the application be resubmitted. The granting of an allocation 
64.16 	of bonding authority under this section must be evidenced by a certificate of allocation.

64.17 	Sec. 33. Minnesota Statutes 2018, section 474A.061, is amended by adding a subdivision 
64.18 	to read:
64.19 		Subd. 1a.Allocation application; housing pool. (a) For any requested allocations from 
64.20 	the housing pool, an issuer may apply for an allocation under this section by submitting to 
64.21 	the department an application on forms provided by the department, accompanied by (1) a 
64.22 	preliminary resolution, (2) a statement of bond counsel that the proposed issue of obligations 
64.23 	requires an allocation under this chapter and the Internal Revenue Code, (3) an application 
64.24 	deposit in the amount of two percent of the requested allocation, (4) a sworn statement from 
64.25 	the applicant identifying the project as either a preservation project, 30 percent AMI 
64.26 	residential rental project, 50 percent AMI residential rental project, 100 percent LIHTC 
64.27 	project, 20 percent LIHTC project, or any other residential rental project, and (5) a 
64.28 	certification from the applicant or its accountant stating whether the requested allocation 
64.29 	exceeds the aggregate bond limitation. The issuer must pay the application deposit to the 
64.30 	Department of Management and Budget. The Minnesota Housing Finance Agency may 
64.31 	apply for and receive an allocation under this section without submitting an application 
64.32 	deposit.
64.33 	(b) An entitlement issuer may not apply for an allocation from the housing pool unless 
64.34 	it either has permanently issued bonds equal to any amount of bonding authority carried 
65.1 	forward from a previous year or has returned for reallocation any unused bonding authority 
65.2 	carried forward from a previous year. For purposes of this subdivision, its entitlement 
65.3 	allocation includes an amount obtained under section 474A.04, subdivision 6. This paragraph 
65.4 	does not apply to an application from the Minnesota Housing Finance Agency for an 
65.5 	allocation under subdivision 2a for cities who choose to have the agency issue bonds on the 
65.6 	city's behalf.
65.7 	(c) If an application is rejected under this section, the commissioner must notify the 
65.8 	applicant and return the application deposit to the applicant within 30 days unless the 
65.9 	applicant requests in writing that the application be resubmitted. The granting of an allocation 
65.10 	of bonding authority under this section must be evidenced by a certificate of allocation.

65.11 	Sec. 34. Minnesota Statutes 2018, section 474A.061, subdivision 2a, is amended to read:
65.12 		Subd. 2a.Housing pool allocation. (a) Commencing on the second Tuesday in January 
65.13 	and continuing on each Monday through July 15, the commissioner shall allocate available 
65.14 	bonding authority from the housing pool to applications received on or before the Monday 
65.15 	of the preceding week for residential rental projects that meet the eligibility criteria under 
65.16 	section 474A.047. Allocations of available bonding authority from the housing pool for 
65.17 	eligible residential rental projects shall be awarded in the following order of priority: (1) 
65.18 	projects that preserve existing federally subsidized housing; (2) projects that are not restricted 
65.19 	to persons who are 55 years of age or older; and (3) other residential rental projects. Prior 
65.20 	to May 15, no allocation shall be made to a project restricted to persons who are 55 years 
65.21 	of age or older
65.22 	(1) preservation projects;
65.23 	(2) 30 percent AMI residential rental projects;
65.24 	(3) 50 percent AMI residential rental projects;
65.25 	(4) 100 percent LIHTC projects;
65.26 	(5) 20 percent LIHTC projects; and
65.27 	(6) other residential rental projects for which the amount of bonds requested in their 
65.28 	respective applications do not exceed the aggregate bond limitation.
65.29 	If an issuer that receives an allocation under this paragraph does not issue obligations equal 
65.30 	to all or a portion of the allocation received within 120 days of the allocation or returns the 
65.31 	allocation to the commissioner, the amount of the allocation is canceled and returned for 
65.32 	reallocation through the housing pool or to the unified pool after July 15.
66.1 	(b) After January 1, and through January 15, The Minnesota Housing Finance Agency 
66.2 	may accept applications from cities for single-family housing programs which meet program 
66.3 	requirements as follows:
66.4 	(1) the housing program must meet a locally identified housing need and be economically 
66.5 	viable;
66.6 	(2) the adjusted income of home buyers may not exceed 80 percent of the greater of 
66.7 	statewide or area median income as published by the Department of Housing and Urban 
66.8 	Development, adjusted for household size;
66.9 	(3) house price limits may not exceed the federal price limits established for mortgage 
66.10 	revenue bond programs. Data on the home purchase price amount, mortgage amount, income, 
66.11 	household size, and race of the households served in the previous year's single-family 
66.12 	housing program, if any, must be included in each application; and
66.13 	(4) for applicants who choose to have the agency issue bonds on their behalf, an 
66.14 	application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal 
66.15 	to one percent of the requested allocation must be submitted to the Minnesota Housing 
66.16 	Finance Agency before the agency forwards the list specifying the amounts allocated to the 
66.17 	commissioner under paragraph (d). The agency shall submit the city's application fee and 
66.18 	application deposit to the commissioner when requesting an allocation from the housing 
66.19 	pool.
66.20 	Applications by a consortium shall include the name of each member of the consortium 
66.21 	and the amount of allocation requested by each member.
66.22 	(c) Any amounts remaining in the housing pool after July 15 are available for 
66.23 	single-family housing programs for cities that applied in January and received an allocation 
66.24 	under this section in the same calendar year. For a city that chooses to issue bonds on its 
66.25 	own behalf or pursuant to a joint powers agreement, the agency must allot available bonding 
66.26 	authority based on the formula in paragraphs (d) and (f). Allocations will be made loan by 
66.27 	loan, on a first-come, first-served basis among cities on whose behalf the Minnesota Housing 
66.28 	Finance Agency issues bonds.
66.29 	Any city that received an allocation pursuant to paragraph (f) in the same calendar year 
66.30 	that wishes to issue bonds on its own behalf or pursuant to a joint powers agreement for an 
66.31 	amount becoming available for single-family housing programs after July 15 shall notify 
66.32 	the Minnesota Housing Finance Agency by July 15. The Minnesota Housing Finance Agency 
66.33 	shall notify each city making a request of the amount of its allocation within three business 
66.34 	days after July 15. The city must comply with paragraph (f).
67.1 	For purposes of paragraphs (a) to (h), "city" means a county or a consortium of local 
67.2 	government units that agree through a joint powers agreement to apply together for 
67.3 	single-family housing programs, and has the meaning given it in section 462C.02, subdivision 
67.4 	6. "Agency" means the Minnesota Housing Finance Agency.
67.5 	(d) The total amount of allocation for mortgage bonds for one city is limited to the lesser 
67.6 	of: (i) the amount requested, or (ii) the product of the total amount available for mortgage 
67.7 	bonds from the housing pool, multiplied by the ratio of each applicant's population as 
67.8 	determined by the most recent estimate of the city's population released by the state 
67.9 	demographer's office to the total of all the applicants' population, except that each applicant 
67.10 	shall be allocated a minimum of $100,000 regardless of the amount requested or the amount 
67.11 	determined under the formula in clause (ii). If a city applying for an allocation is located 
67.12 	within a county that has also applied for an allocation, the city's population will be deducted 
67.13 	from the county's population in calculating the amount of allocations under this paragraph.
67.14 	Upon determining the amount of each applicant's allocation, the agency shall forward 
67.15 	to the commissioner a list specifying the amounts allotted to each application with all 
67.16 	application fees and deposits from applicants who choose to have the agency issue bonds 
67.17 	on their behalf.
67.18 	Total allocations from the housing pool for single-family housing programs may not 
67.19 	exceed 31 percent of the adjusted allocation to the housing pool until after July 15.
67.20 	(e) The agency may issue bonds on behalf of participating cities. The agency shall request 
67.21 	an allocation from the commissioner for all applicants who choose to have the agency issue 
67.22 	bonds on their behalf and the commissioner shall allocate the requested amount to the 
67.23 	agency. The agency may request an allocation at any time after the second Tuesday in 
67.24 	January and through the last Monday in July. After awarding an allocation and receiving a 
67.25 	notice of issuance for the mortgage bonds issued on behalf of the participating cities, the 
67.26 	commissioner shall transfer the application deposits to the Minnesota Housing Finance 
67.27 	Agency to be returned to the participating cities. The Minnesota Housing Finance Agency 
67.28 	shall return any application deposit to a city that paid an application deposit under paragraph 
67.29 	(b), clause (4), but was not part of the list forwarded to the commissioner under paragraph 
67.30 	(d).
67.31 	(f) A city may choose to issue bonds on its own behalf or through a joint powers 
67.32 	agreement and may request an allocation from the commissioner by forwarding an application 
67.33 	with an application fee pursuant to section 474A.03, subdivision 4, and a one percent 
67.34 	application deposit to the commissioner no later than the Monday of the week preceding 
68.1 	an allocation. If the total amount requested by all applicants exceeds the amount available 
68.2 	in the pool, the city may not receive a greater allocation than the amount it would have 
68.3 	received under the list forwarded by the Minnesota Housing Finance Agency to the 
68.4 	commissioner. No city may request or receive an allocation from the commissioner until 
68.5 	the list under paragraph (d) has been forwarded to the commissioner. A city must request 
68.6 	an allocation from the commissioner no later than the last Monday in July. No city may 
68.7 	receive an allocation from the housing pool for mortgage bonds which has not first applied 
68.8 	to the Minnesota Housing Finance Agency. The commissioner shall allocate the requested 
68.9 	amount to the city or cities subject to the limitations under this paragraph.
68.10 	If a city issues mortgage bonds from an allocation received under this paragraph, the 
68.11 	issuer must provide for the recycling of funds into new loans. If the issuer is not able to 
68.12 	provide for recycling, the issuer must notify the commissioner in writing of the reason that 
68.13 	recycling was not possible and the reason the issuer elected not to have the Minnesota 
68.14 	Housing Finance Agency issue the bonds. "Recycling" means the use of money generated 
68.15 	from the repayment and prepayment of loans for further eligible loans or for the redemption 
68.16 	of bonds and the issuance of current refunding bonds.
68.17 	(g) No entitlement city or county or city in an entitlement county may apply for or be 
68.18 	allocated authority to issue mortgage bonds or use mortgage credit certificates from the 
68.19 	housing pool. No city in an entitlement county may apply for or be allocated authority to 
68.20 	issue residential rental bonds from the housing pool or the unified pool.
68.21 	(h) A city that does not use at least 50 percent of its allotment by the date applications 
68.22 	are due for the first allocation that is made from the housing pool for single-family housing 
68.23 	programs in the immediately succeeding calendar year may not apply to the housing pool 
68.24 	for a single-family mortgage bond or mortgage credit certificate program allocation that 
68.25 	exceeds the amount of its allotment for the preceding year that was used by the city in the 
68.26 	immediately preceding year or receive an allotment from the housing pool in the succeeding 
68.27 	calendar year that exceeds the amount of its allotment for the preceding year that was used 
68.28 	in the preceding year. The minimum allotment is $100,000 for an allocation made prior to 
68.29 	July 15, regardless of the amount used in the preceding calendar year, except that a city 
68.30 	whose allocation in the preceding year was the minimum amount of $100,000 and who did 
68.31 	not use at least 50 percent of its allocation from the preceding year is ineligible for an 
68.32 	allocation in the immediate succeeding calendar year. Each local government unit in a 
68.33 	consortium must meet the requirements of this paragraph.

69.1 	Sec. 35. Minnesota Statutes 2018, section 474A.091, subdivision 2, is amended to read:
69.2 		Subd. 2.Application. (a) Issuers may apply for an allocation under this section by 
69.3 	submitting to the department an application on forms provided by the department 
69.4 	accompanied by:
69.5 	(1) a preliminary resolution,;
69.6 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
69.7 	allocation under this chapter and the Internal Revenue Code,;
69.8 	(3) the type of qualified bonds to be issued, (4) an application deposit in the amount of 
69.9 	two percent of the requested allocation, (5) a public purpose scoring worksheet for 
69.10 	manufacturing and enterprise zone applications, and (6) for residential rental projects, a 
69.11 	statement from the applicant or bond counsel as to whether the project preserves existing 
69.12 	federally subsidized housing and whether the project is restricted to persons who are 55 
69.13 	years of age or older.; and
69.14 	(4) a sworn statement from the applicant identifying the project as either a preservation 
69.15 	project, 30 percent AMI residential rental project, 50 percent AMI residential rental project, 
69.16 	100 percent LIHTC project, 20 percent LIHTC project, or any other residential rental project.
69.17 	The issuer must pay the application deposit by checkto the Department of Management 
69.18 	and Budget. An entitlement issuer may not apply for an allocation for public facility bonds, 
69.19 	residential rental project bonds, or mortgage bonds under this section unless it has either 
69.20 	permanently issued bonds equal to the amount of its entitlement allocation for the current 
69.21 	year plus any amount carried forward from previous years or returned for reallocation all 
69.22 	of its unused entitlement allocation. For purposes of this subdivision, its entitlement allocation 
69.23 	includes an amount obtained under section 474A.04, subdivision 6.
69.24 	(b) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision, 
69.25 	the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds 
69.26 	under this section prior to the first Monday in October, but may be awarded allocations for 
69.27 	mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota 
69.28 	Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota 
69.29 	Rural Finance Authority may apply for and receive an allocation under this section without 
69.30 	submitting an application deposit.

69.31 	Sec. 36. Minnesota Statutes 2018, section 474A.091, subdivision 3, is amended to read:
69.32 		Subd. 3.Allocation procedure. (a) The commissioner shall allocate available bonding 
69.33 	authority under this section on the Monday of every other week beginning with the first 
70.1 	Monday in August through and on the last Monday in November. Applications for allocations 
70.2 	must be received by the department by 4:30 p.m. on the Monday preceding the Monday on 
70.3 	which allocations are to be made. If a Monday falls on a holiday, the allocation will be made 
70.4 	or the applications must be received by the next business day after the holiday.
70.5 	(b) Prior to October 1, only the following applications shall be awarded allocations from 
70.6 	the unified pool. Allocations shall be awarded in the following order of priority:
70.7 	(1) applications for residential rental project bonds;
70.8 	(2) applications for small issue bonds for manufacturing projects; and
70.9 	(3) applications for small issue bonds for agricultural development bond loan projects.
70.10 	(c) On the first Monday in October through the last Monday in November, allocations 
70.11 	shall be awarded from the unified pool in the following order of priority:
70.12 	(1) applications for student loan bonds issued by or on behalf of the Minnesota Office 
70.13 	of Higher Education;
70.14 	(2) applications for mortgage bonds;
70.15 	(3) applications for public facility projects funded by public facility bonds;
70.16 	(4) applications for small issue bonds for manufacturing projects;
70.17 	(5) applications for small issue bonds for agricultural development bond loan projects;
70.18 	(6) applications for residential rental project bonds;
70.19 	(7) applications for enterprise zone facility bonds;
70.20 	(8) applications for governmental bonds; and
70.21 	(9) applications for redevelopment bonds.
70.22 	(d) If there are two or more applications for manufacturing projects from the unified 
70.23 	pool and there is insufficient bonding authority to provide allocations for all manufacturing 
70.24 	projects in any one allocation period, the available bonding authority shall be awarded based 
70.25 	on the number of points awarded a project under section 474A.045 with those projects 
70.26 	receiving the greatest number of points receiving allocation first. If two or more applications 
70.27 	for manufacturing projects receive an equal amount of points, available bonding authority 
70.28 	shall be awarded by lot unless otherwise agreed to by the respective issuers.
70.29 	(e) If there are two or more applications for enterprise zone facility projects from the 
70.30 	unified pool and there is insufficient bonding authority to provide allocations for all enterprise 
70.31 	zone facility projects in any one allocation period, the available bonding authority shall be 
71.1 	awarded based on the number of points awarded a project under section 474A.045 with 
71.2 	those projects receiving the greatest number of points receiving allocation first. If two or 
71.3 	more applications for enterprise zone facility projects receive an equal amount of points, 
71.4 	available bonding authority shall be awarded by lot unless otherwise agreed to by the 
71.5 	respective issuers.
71.6 	(f) If there are two or more applications for residential rental projects from the unified 
71.7 	pool and there is insufficient bonding authority to provide allocations for all residential 
71.8 	rental projects in any one allocation period, the available bonding authority shall be awarded 
71.9 	in the following order of priority: (1) projects that preserve existing federally subsidized 
71.10 	housing; (2) projects that are not restricted to persons who are 55 years of age or older; and 
71.11 	(3) preservation projects; (2) 30 percent AMI residential rental projects; (3) 50 percent AMI 
71.12 	residential rental projects; (4) 100 percent LIHTC projects; (5) 20 percent LIHTC projects; 
71.13 	and (6) other residential rental projects. If there are two or more applications for residential 
71.14 	rental projects at the same priority level and there is insufficient bonding authority to provide 
71.15 	allocations for all the projects in any one allocation period, available bonding authority shall 
71.16 	be randomly awarded by lot but only for projects that received the full amount of their 
71.17 	respective requested allocations. If a residential rental project does not receive any of its 
71.18 	requested allocation pursuant to this paragraph and the project applies in the future to the 
71.19 	housing pool or the unified pool for additional allocation of bonds, the project shall be fully 
71.20 	funded up to its original application request for bonding authority before any new project, 
71.21 	applying in the same allocation period, that has an equal priority shall receive bonding 
71.22 	authority.
71.23 	(g) From the first Monday in August through the last Monday in November, $20,000,000 
71.24 	of bonding authority or an amount equal to the total annual amount of bonding authority 
71.25 	allocated to the small issue pool under section 474A.03, subdivision 1, less the amount 
71.26 	allocated to issuers from the small issue pool for that year, whichever is less, is reserved 
71.27 	within the unified pool for small issue bonds to the extent such the amounts are available 
71.28 	within the unified pool.
71.29 	(h) The total amount of allocations for mortgage bonds from the housing pool and the 
71.30 	unified pool may not exceed:
71.31 	(1) $10,000,000 for any one city; or
71.32 	(2) $20,000,000 for any number of cities in any one county.
71.33 	(i) The total amount of allocations for student loan bonds from the unified pool may not 
71.34 	exceed $25,000,000 per year.
72.1 	(j) If there is insufficient bonding authority to fund all projects within any qualified bond 
72.2 	category other than enterprise zone facility projects, manufacturing projects, and residential 
72.3 	rental projects, allocations shall be awarded by lot unless otherwise agreed to by the 
72.4 	respective issuers.
72.5 	(k) If an application is rejected, the commissioner must notify the applicant and return 
72.6 	the application deposit to the applicant within 30 days unless the applicant requests in writing 
72.7 	that the application be resubmitted.
72.8 	(l) The granting of an allocation of bonding authority under this section must be evidenced 
72.9 	by issuance of a certificate of allocation.

72.10 	Sec. 37. ADVANCES TO THE MINNESOTA MANUFACTURED HOME 
72.11 	RELOCATION TRUST FUND.
 72.12 	(a) Until June 30, 2020, the Minnesota Housing Finance Agency or Department of 
72.13 	Management and Budget as determined by the commissioner of management and budget, 
72.14 	is authorized to advance up to $400,000 from state appropriations or other resources to the 
72.15 	Minnesota manufactured home relocation trust fund established under Minnesota Statutes, 
72.16 	section 462A.35, if the account balance in the Minnesota manufactured home relocation 
72.17 	trust fund is insufficient to pay the amounts claimed under Minnesota Statutes, section 
72.18 	327C.095, subdivision 13.
72.19 	(b) The Minnesota Housing Finance Agency or Department of Management and Budget 
72.20 	shall be reimbursed from the Minnesota manufactured home relocation trust fund for any 
72.21 	money advanced by the agency under paragraph (a) to the fund. Approved claims for payment 
72.22 	to manufactured home owners shall be paid prior to the money being advanced by the agency 
72.23 	or the department to the fund.

72.24 	Sec. 38. ITASCA COUNTY LICENSE FEE INCREASE.
 72.25 	An owner or licensor of any interest in real property located in Itasca County is prohibited 
72.26 	from increasing a license fee except as provided in this section. The amount of any license 
72.27 	fee increase must not exceed ten percent of the fee charged in the preceding 12-month period 
72.28 	and an owner or licensor must not impose more than one license fee increase in any 12-month 
72.29 	period. For purposes of this section, a "license fee" means any fee paid by a licensee pursuant 
72.30 	to a license agreement granting the licensee permission to use, enter, or occupy an owner 
72.31 	or licensor's property.

73.1 	EFFECTIVE DATE; APPLICATION. This section is effective the day after the Itasca 
73.2 	County Board of Commissioners and its chief clerical officer timely complete their 
73.3 	compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, and applies to 
73.4 	license agreements entered into on or after that date.

73.5 	ARTICLE 5
73.6 	BROADBAND DEVELOPMENT

73.7	Section 1. BROADBAND DEVELOPMENT APPROPRIATIONS.
 	
73.8 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
73.9 	and for the purposes specified in this article. The appropriations are from the general fund, 
73.10 	or another named fund, and are available for the fiscal years indicated for each purpose. 
73.11 	The figures "2020" and "2021" used in this article mean that the appropriations listed under 
73.12 	them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. 
73.13 	"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" 
73.14 	is fiscal years 2020 and 2021.

73.15				APPROPRIATIONS
	
73.16				Available for the Year
	
73.17				Ending June 30
	
73.18					2020
		2021

73.19
73.20	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT
 	$
	30,250,000
	$
	250,000
	
73.21 	(a) $250,000 each year is for the Broadband 
73.22 	Development Office.
73.23 	(b) $30,000,000 the first year is for deposit in 
73.24 	the border-to-border broadband fund account 
73.25 	created under Minnesota Statutes, section 
73.26 	116J.396, and may be used for the purposes 
73.27 	provided in Minnesota Statutes, section 
73.28 	116J.395. This is a onetime appropriation.