1.1 	A bill for an act
1.2 	relating to state government; establishing a budget for the Department of 
1.3 	Agriculture, the Board of Animal Health, the Agricultural Utilization Research 
1.4 	Institute, the Housing Finance Agency, and broadband development; making policy 
1.5 	and technical changes to various provisions related to agriculture, food, rural 
1.6 	development, and housing, including provisions related to grants, loans, pesticides, 
1.7 	fertilizer, hemp, pastures, bioincentive programs, grain buyers, grain warehouses, 
1.8 	manufactured homes, Housing Finance Agency loans and grants, Minnesota Bond 
1.9 	Allocation Act, and residential leases; authorizing rulemaking; requiring reports; 
1.10 	providing penalties and fees; appropriating money;amending Minnesota Statutes 
1.11 	2018, sections 17.041, subdivision 1; 17.118, subdivision 2; 18B.07, subdivision 
1.12 	2; 18C.425, subdivision 6; 18C.70, subdivision 5; 18C.71, subdivisions 1, 4; 
1.13 	18C.80, subdivision 2; 18K.02, subdivision 3; 18K.03; 28A.16; 41A.15, 
1.14 	subdivisions 2, 10, by adding a subdivision; 41A.16, subdivisions 1, 2, 4; 41A.17, 
1.15 	subdivisions 1, 2, 3; 41A.18, subdivisions 1, 2, 3; 41B.02, subdivision 10a, as 
1.16 	amended; 41B.045; 41B.055, subdivision 4; 116.06, by adding a subdivision; 
1.17 	116.07, subdivisions 7, 7d; 223.16, subdivisions 1, 2a, 4; 223.17, subdivisions 3, 
1.18 	4, 5, 6; 223.177, subdivisions 2, 3; 223.19; 232.21, subdivision 7, by adding 
1.19 	subdivisions; 232.22, subdivisions 3, 4; 232.23, subdivision 3; 232.24; 299D.085, 
1.20 	by adding a subdivision; 326B.815, subdivision 1; 327.31, by adding a subdivision; 
1.21 	327B.041; 327C.01, by adding a subdivision; 327C.095, subdivisions 1, 2, 3, 4, 
1.22 	6, 7, 9, 11, 12, 13, by adding a subdivision; 428A.11, subdivisions 4, 6; 462A.2035, 
1.23 	subdivisions 1a, 1b; 462A.209, subdivision 8; 462A.22, subdivision 9; 462A.222, 
1.24 	subdivision 3; 462A.24; 462A.33, subdivision 1; 462A.38, subdivision 1; 474A.02, 
1.25 	by adding subdivisions; 474A.03, subdivision 1; 474A.04, subdivision 1a; 
1.26 	474A.061, subdivisions 1, 2a, 2b, 2c, 4, by adding subdivisions; 474A.062; 
1.27 	474A.091, subdivisions 1, 2, 3, 5, by adding a subdivision; 474A.131, subdivisions 
1.28 	1, 1b; 474A.14; 474A.21; 504B.111; 504B.206, subdivision 3; Laws 2015, First 
1.29 	Special Session chapter 4, article 1, section 2, subdivision 4, as amended; Laws 
1.30 	2017, chapter 88, article 1, section 2, subdivisions 2, 4; proposing coding for new 
1.31 	law in Minnesota Statutes, chapters 18D; 223; 327; 462A; 504B; repealing 
1.32 	Minnesota Statutes 2018, sections 41A.15, subdivisions 2a, 2b; 327C.095, 
1.33 	subdivision 8.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	ARTICLE 1
2.3 	AGRICULTURE APPROPRIATIONS

2.4	Section 1. AGRICULTURE APPROPRIATIONS.
 	
2.5 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
2.6 	and for the purposes specified in this article. The appropriations are from the general fund, 
2.7 	or another named fund, and are available for the fiscal years indicated for each purpose. 
2.8 	The figures "2020" and "2021" used in this article mean that the appropriations listed under 
2.9 	them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. 
2.10 	"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" 
2.11 	is fiscal years 2020 and 2021.

2.12				APPROPRIATIONS
	
2.13				Available for the Year
	
2.14				Ending June 30
	
2.15					2020
		2021

2.16	Sec. 2. DEPARTMENT OF AGRICULTURE

2.17	Subdivision 1.Total Appropriation
 	$
	54,208,000
	$
	54,207,000

2.18	Appropriations by Fund
	
2.19		2020
	2021
	
2.20	General
	53,809,000
	53,808,000
	
2.21	Remediation
	399,000
	399,000
	
2.22 	The amounts that may be spent for each 
2.23 	purpose are specified in the following 
2.24 	subdivisions.

2.25	Subd. 2.Protection Services

2.26	Appropriations by Fund
	
2.27		2020
	2021
	
2.28	General
	18,650,000
	18,650,000
	
2.29	Remediation
	399,000
	399,000
	
2.30 	(a) $399,000 the first year and $399,000 the 
2.31 	second year are from the remediation fund for 
2.32 	administrative funding for the voluntary 
2.33 	cleanup program.
3.1 	(b) $175,000 the first year and $175,000 the 
3.2 	second year are for compensation for 
3.3 	destroyed or crippled livestock under 
3.4 	Minnesota Statutes, section 3.737. The first 
3.5 	year appropriation may be spent to compensate 
3.6 	for livestock that were destroyed or crippled 
3.7 	during fiscal year 2019. If the amount in the 
3.8 	first year is insufficient, the amount in the 
3.9 	second year is available in the first year. The 
3.10 	commissioner may use up to $5,000 each year 
3.11 	to reimburse expenses incurred by university 
3.12 	extension educators to provide fair market 
3.13 	values of destroyed or crippled livestock.
3.14 	(c) $250,000 the first year and $250,000 the 
3.15 	second year are for rapid detection, 
3.16 	identification, containment, control, and 
3.17 	management of high-priority plant pests and 
3.18 	pathogens including emerald ash borer.
3.19 	(d) $155,000 the first year and $155,000 the 
3.20 	second year are for compensation for crop 
3.21 	damage under Minnesota Statutes, section 
3.22 	3.7371. If the amount in the first year is 
3.23 	insufficient, the amount in the second year is 
3.24 	available in the first year. The commissioner 
3.25 	may use up to $30,000 of the appropriation 
3.26 	each year to reimburse expenses incurred by 
3.27 	the commissioner or the commissioner's 
3.28 	approved agent to investigate and resolve 
3.29 	claims.
3.30 	If the commissioner determines that claims 
3.31 	made under Minnesota Statutes, section 3.737 
3.32 	or 3.7371, are unusually high, amounts 
3.33 	appropriated for either program may be 
3.34 	transferred to the appropriation for the other 
3.35 	program.
4.1 	(e) $450,000 the first year and $450,000 the 
4.2 	second year are additional funding for the 
4.3 	noxious weed and invasive plant program. The 
4.4 	base amount for this appropriation in fiscal 
4.5 	year 2022 and later is $225,000.
4.6 	(f) $175,000 the first year and $175,000 the 
4.7 	second year are for industrial hemp 
4.8 	development.
4.9 	(g) $150,000 the first year and $150,000 the 
4.10 	second year are for additional meat and poultry 
4.11 	inspection services.
4.12 	(h) $275,000 the first year and $275,000 the 
4.13 	second year are to replace capital equipment 
4.14 	in the Department of Agriculture's analytical 
4.15 	laboratory. The base amount for this 
4.16 	appropriation in fiscal year 2022 and later is 
4.17 	$225,000.
4.18 	(i) $250,000 the first year and $250,000 the 
4.19 	second year are for agricultural emergency 
4.20 	preparedness and response.

4.21
4.22	Subd. 3.Agricultural Marketing and 
Development
 		3,996,000
		3,996,000
	
4.23 	(a) $186,000 the first year and $186,000 the 
4.24 	second year are for transfer to the Minnesota 
4.25 	grown account and may be used as grants for 
4.26 	Minnesota grown promotion under Minnesota 
4.27 	Statutes, section 17.102. Grants may be made 
4.28 	for one year. Notwithstanding Minnesota 
4.29 	Statutes, section 16A.28, the appropriations 
4.30 	encumbered under contract on or before June 
4.31 	30, 2021, for Minnesota grown grants in this 
4.32 	paragraph are available until June 30, 2023.
4.33 	(b) $100,000 the first year and $100,000 the 
4.34 	second year are to expand domestic and 
5.1 	international marketing opportunities for 
5.2 	farmers and value-added processors, including 
5.3 	staffing to facilitate farm-to-school sales and 
5.4 	new markets for Minnesota-grown hemp.
5.5 	(c) $634,000 the first year and $634,000 the 
5.6 	second year are for continuation of the dairy 
5.7 	development and profitability enhancement 
5.8 	and dairy business planning grant programs 
5.9 	established under Laws 1997, chapter 216, 
5.10 	section 7, subdivision 2, and Laws 2001, First 
5.11 	Special Session chapter 2, section 9, 
5.12 	subdivision 2. The commissioner may allocate 
5.13 	the available sums among permissible 
5.14 	activities, including efforts to improve the 
5.15 	quality of milk produced in the state, in the 
5.16 	proportions that the commissioner deems most 
5.17 	beneficial to Minnesota's dairy farmers. The 
5.18 	commissioner must submit a detailed 
5.19 	accomplishment report and a work plan 
5.20 	detailing future plans for, and anticipated 
5.21 	accomplishments from, expenditures under 
5.22 	this program to the chairs and ranking minority 
5.23 	members of the legislative committees and 
5.24 	divisions with jurisdiction over agriculture 
5.25 	policy and finance on or before the start of 
5.26 	each fiscal year. If significant changes are 
5.27 	made to the plans in the course of the year, 
5.28 	the commissioner must notify the chairs and 
5.29 	ranking minority members.
5.30 	(d) $50,000 the first year and $50,000 the 
5.31 	second year are for additional community 
5.32 	outreach on farms and rural mental health 
5.33 	services including the 24-hour hotline, service 
5.34 	availability, and mental health forums. Of this 
5.35 	appropriation, $12,000 each year is to provide 
6.1 	professional development training for Farm 
6.2 	Business Management instructors in the 
6.3 	Minnesota State system. The appropriations 
6.4 	under this paragraph are onetime.
6.5 	(e) The commissioner may use funds 
6.6 	appropriated in this subdivision for annual 
6.7 	cost-share payments to resident farmers or 
6.8 	entities that sell, process, or package 
6.9 	agricultural products in this state for the costs 
6.10 	of organic certification. The commissioner 
6.11 	may allocate these funds for assistance to 
6.12 	persons transitioning from conventional to 
6.13 	organic agriculture.

6.14
6.15	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		23,653,000
		23,654,000
	
6.16 	(a) $9,300,000 the first year and $9,300,000 
6.17 	the second year are for transfer to the 
6.18 	agriculture research, education, extension, and 
6.19 	technology transfer account under Minnesota 
6.20 	Statutes, section 41A.14, subdivision 3. Of 
6.21 	these amounts: at least $600,000 the first year 
6.22 	and $600,000 the second year are for the 
6.23 	Minnesota Agricultural Experiment Station's 
6.24 	agriculture rapid response fund under 
6.25 	Minnesota Statutes, section 41A.14, 
6.26 	subdivision 1, clause (2); $2,000,000 the first 
6.27 	year and $2,000,000 the second year are for 
6.28 	grants to the Minnesota Agriculture Education 
6.29 	Leadership Council to enhance agricultural 
6.30 	education with priority given to Farm Business 
6.31 	Management challenge grants; $350,000 the 
6.32 	first year and $350,000 the second year are 
6.33 	for potato breeding; and $450,000 the first 
6.34 	year and $450,000 the second year are for the 
6.35 	cultivated wild rice breeding project at the 
7.1 	North Central Research and Outreach Center 
7.2 	to include a tenure track/research associate 
7.3 	plant breeder. The commissioner shall transfer 
7.4 	the remaining funds in this appropriation each 
7.5 	year to the Board of Regents of the University 
7.6 	of Minnesota for purposes of Minnesota 
7.7 	Statutes, section 41A.14. Of the amount 
7.8 	transferred to the Board of Regents, up to 
7.9 	$1,000,000 each year is for research on avian 
7.10 	influenza.
7.11 	To the extent practicable, money expended 
7.12 	under Minnesota Statutes, section 41A.14, 
7.13 	subdivision 1, clauses (1) and (2), must 
7.14 	supplement and not supplant existing sources 
7.15 	and levels of funding. The commissioner may 
7.16 	use up to one percent of this appropriation for 
7.17 	costs incurred to administer the program.
7.18 	(b) $14,353,000 the first year and $14,354,000 
7.19 	the second year are for the agricultural growth, 
7.20 	research, and innovation program in 
7.21 	Minnesota Statutes, section 41A.12. Except 
7.22 	as provided below, the commissioner may 
7.23 	allocate the appropriation each year among 
7.24 	the following areas: facilitating the start-up, 
7.25 	modernization, improvement, or expansion of 
7.26 	livestock operations including beginning and 
7.27 	transitioning livestock operations with 
7.28 	preference given to robotic dairy-milking 
7.29 	equipment; providing funding not to exceed 
7.30 	$400,000 each year to develop and enhance 
7.31 	farm-to-school markets for Minnesota farmers 
7.32 	by providing more fruits, vegetables, meat, 
7.33 	grain, and dairy for Minnesota children in 
7.34 	school and child care settings including, at the 
7.35 	commissioner's discretion, reimbursing 
8.1 	schools for purchases from local farmers; 
8.2 	assisting value-added agricultural businesses 
8.3 	to begin or expand, to access new markets, or 
8.4 	to diversify, including aquaponics systems; 
8.5 	providing funding not to exceed $300,000 
8.6 	each year for urban youth agricultural 
8.7 	education or urban agriculture community 
8.8 	development; providing funding not to exceed 
8.9 	$300,000 each year for the good food access 
8.10 	program under Minnesota Statutes, section 
8.11 	17.1017; facilitating the start-up, 
8.12 	modernization, or expansion of other 
8.13 	beginning and transitioning farms including 
8.14 	by providing loans under Minnesota Statutes, 
8.15 	section 41B.056; sustainable agriculture 
8.16 	on-farm research and demonstration; 
8.17 	development or expansion of food hubs and 
8.18 	other alternative community-based food 
8.19 	distribution systems; enhancing renewable 
8.20 	energy infrastructure and use; crop research 
8.21 	including basic and applied turf seed research; 
8.22 	Farm Business Management tuition assistance; 
8.23 	and good agricultural practices/good handling 
8.24 	practices certification assistance. The 
8.25 	commissioner may use up to 6.5 percent of 
8.26 	this appropriation for costs incurred to 
8.27 	administer the program.
8.28 	Of the amount appropriated for the agricultural 
8.29 	growth, research, and innovation program in 
8.30 	Minnesota Statutes, section 41A.12:
8.31 	(1) $1,000,000 the first year and $1,000,000 
8.32 	the second year are for distribution in equal 
8.33 	amounts to each of the state's county fairs to 
8.34 	preserve and promote Minnesota agriculture;
9.1 	(2) $2,500,000 the first year and $2,500,000 
9.2 	the second year are for incentive payments 
9.3 	under Minnesota Statutes, sections 41A.16, 
9.4 	41A.17, and 41A.18. Notwithstanding 
9.5 	Minnesota Statutes, section 16A.28, the first 
9.6 	year appropriation is available until June 30, 
9.7 	2021, and the second year appropriation is 
9.8 	available until June 30, 2022. If this 
9.9 	appropriation exceeds the total amount for 
9.10 	which all producers are eligible in a fiscal 
9.11 	year, the balance of the appropriation is 
9.12 	available for the agricultural growth, research, 
9.13 	and innovation program. The base amount for 
9.14 	the allocation under this clause is $3,000,000 
9.15 	in fiscal year 2022 and later;
9.16 	(3) up to $5,000,000 the first year is for Dairy 
9.17 	Assistance, Investment, Relief Initiative 
9.18 	(DAIRI) grants to Minnesota dairy farmers 
9.19 	who enroll for five years of coverage under 
9.20 	the federal dairy margin coverage program 
9.21 	and produced no more than 16,000,000 pounds 
9.22 	of milk in 2018. The commissioner must 
9.23 	award DAIRI grants based on participating 
9.24 	producers' amount of 2018 milk, up to 
9.25 	5,000,000 pounds per participating producer, 
9.26 	at a rate determined by the commissioner 
9.27 	within the limits of available funding;
9.28 	(4) up to $5,000,000 the second year is for 
9.29 	innovative soybean processing and research;
9.30 	(5) $75,000 the first year is for a grant to 
9.31 	Greater Mankato Growth, Inc. for assistance 
9.32 	to agricultural-related businesses to promote 
9.33 	jobs, innovation, and synergy development; 
9.34 	and
10.1 	(6) $75,000 the first year and $75,000 the 
10.2 	second year are for grants to the Minnesota 
10.3 	Turf Seed Council for basic and applied 
10.4 	research.
10.5 	The amounts in clauses (3) to (6) are onetime.
10.6 	Notwithstanding Minnesota Statutes, section 
10.7 	16A.28, any unencumbered balance does not 
10.8 	cancel at the end of the first year and is 
10.9 	available for the second year and 
10.10 	appropriations encumbered under contract on 
10.11 	or before June 30, 2021, for agricultural 
10.12 	growth, research, and innovation grants are 
10.13 	available until June 30, 2024.
10.14 	The base amount for the agricultural growth, 
10.15 	research, and innovation program is 
10.16 	$14,693,000 in fiscal year 2022 and 
10.17 	$14,693,000 in fiscal year 2023, and includes 
10.18 	funding for incentive payments under 
10.19 	Minnesota Statutes, sections 41A.16, 41A.17, 
10.20 	41A.18, and 41A.20.
10.21 	The commissioner must consult with the 
10.22 	commissioner of transportation, the 
10.23 	commissioner of administration, and local 
10.24 	units of government to identify at least ten 
10.25 	parcels of publicly owned land that are suitable 
10.26 	for urban agriculture.

10.27
10.28	Subd. 5.Administration and Financial 
Assistance
 		7,510,000
		7,508,000
	
10.29 	(a) $474,000 the first year and $474,000 the 
10.30 	second year are for payments to county and 
10.31 	district agricultural societies and associations 
10.32 	under Minnesota Statutes, section 38.02, 
10.33 	subdivision 1. Aid payments to county and 
10.34 	district agricultural societies and associations 
11.1 	shall be disbursed no later than July 15 of each 
11.2 	year. These payments are the amount of aid 
11.3 	from the state for an annual fair held in the 
11.4 	previous calendar year.
11.5 	(b) $2,000 the first year is for a grant to the 
11.6 	Minnesota State Poultry Association. This is 
11.7 	a onetime appropriation, and is available until 
11.8 	June 30, 2021.
11.9 	(c) $18,000 the first year and $18,000 the 
11.10 	second year are for grants to the Minnesota 
11.11 	Livestock Breeders Association. These are 
11.12 	onetime appropriations.
11.13 	(d) $47,000 the first year and $47,000 the 
11.14 	second year are for the Northern Crops 
11.15 	Institute. These appropriations may be spent 
11.16 	to purchase equipment. These are onetime 
11.17 	appropriations.
11.18 	(e) $267,000 the first year and $267,000 the 
11.19 	second year are for farm advocate services.
11.20 	(f) $17,000 the first year and $17,000 the 
11.21 	second year are for grants to the Minnesota 
11.22 	Horticultural Society. These are onetime 
11.23 	appropriations.
11.24 	(g) $250,000 the first year and $250,000 the 
11.25 	second year are for transfer to the Board of 
11.26 	Trustees of the Minnesota State Colleges and 
11.27 	Universities for statewide mental health 
11.28 	counseling support to farm families and 
11.29 	business operators through the Minnesota State 
11.30 	Agricultural Centers of Excellence. South 
11.31 	Central College and Central Lakes College 
11.32 	shall serve as the fiscal agents. The base 
11.33 	amount for this appropriation in fiscal year 
11.34 	2022 and later is $238,000.
12.1 	(h) $1,700,000 the first year and $1,700,000 
12.2 	the second year are for grants to Second 
12.3 	Harvest Heartland on behalf of Minnesota's 
12.4 	six Feeding America food banks for the 
12.5 	following:
12.6 	(1) to purchase milk for distribution to 
12.7 	Minnesota's food shelves and other charitable 
12.8 	organizations that are eligible to receive food 
12.9 	from the food banks. Milk purchased under 
12.10 	the grants must be acquired from Minnesota 
12.11 	milk processors and based on low-cost bids. 
12.12 	The milk must be allocated to each Feeding 
12.13 	America food bank serving Minnesota 
12.14 	according to the formula used in the 
12.15 	distribution of United States Department of 
12.16 	Agriculture commodities under The 
12.17 	Emergency Food Assistance Program. Second 
12.18 	Harvest Heartland may enter into contracts or 
12.19 	agreements with food banks for shared funding 
12.20 	or reimbursement of the direct purchase of 
12.21 	milk. Each food bank that receives funding 
12.22 	under this clause may use up to two percent 
12.23 	for administrative expenses; and
12.24 	(2) to compensate agricultural producers and 
12.25 	processors for costs incurred to harvest and 
12.26 	package for transfer surplus fruits, vegetables, 
12.27 	and other agricultural commodities that would 
12.28 	otherwise go unharvested, be discarded, or 
12.29 	sold in a secondary market. Surplus 
12.30 	commodities must be distributed statewide to 
12.31 	food shelves and other charitable organizations 
12.32 	that are eligible to receive food from the food 
12.33 	banks. Surplus food acquired under this clause 
12.34 	must be from Minnesota producers and 
12.35 	processors. Second Harvest Heartland may 
13.1 	use up to 15 percent of each grant awarded 
13.2 	under this clause for administrative and 
13.3 	transportation expenses.
13.4 	Of the amount appropriated under this 
13.5 	paragraph, at least $600,000 each year must 
13.6 	be allocated under clause (1). Notwithstanding 
13.7 	Minnesota Statutes, section 16A.28, any 
13.8 	unencumbered balance the first year does not 
13.9 	cancel and is available in the second year. 
13.10 	Second Harvest Heartland must submit 
13.11 	quarterly reports to the commissioner in the 
13.12 	form prescribed by the commissioner. The 
13.13 	reports must include but are not limited to 
13.14 	information on the expenditure of funds, the 
13.15 	amount of milk or other commodities 
13.16 	purchased, and the organizations to which this 
13.17 	food was distributed. The base for this 
13.18 	appropriation is $1,650,000 in fiscal year 2022 
13.19 	and $1,650,000 in fiscal year 2023.
13.20 	(i) $150,000 the first year and $150,000 the 
13.21 	second year are for grants to the Center for 
13.22 	Rural Policy and Development. These are 
13.23 	onetime appropriations.
13.24 	(j) $250,000 the first year and $250,000 the 
13.25 	second year are for grants to the Minnesota 
13.26 	Agricultural Education and Leadership 
13.27 	Council for programs of the council under 
13.28 	Minnesota Statutes, chapter 41D.
13.29 	(k) The commissioner shall continue to 
13.30 	increase connections with ethnic minority and 
13.31 	immigrant farmers to farming opportunities 
13.32 	and farming programs throughout the state.

13.33	Sec. 3. BOARD OF ANIMAL HEALTH
 	$
	5,677,000
	$
	5,677,000
	
14.1 	$200,000 the first year and $200,000 the 
14.2 	second year are for agricultural emergency 
14.3 	preparedness and response.

14.4
14.5	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	3,893,000
	$
	3,893,000

14.6 	Sec. 5. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, as 
14.7 	amended by Laws 2016, chapter 184, section 11, Laws 2016, chapter 189, article 2, section 
14.8 	26, and Laws 2017, chapter 88, article 1, section 5, is amended to read:

14.914.10
	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		14,993,000
		18,316,000
	
14.11 	$4,483,000 the first year and $8,500,000 the 
14.12 	second year are for transfer to the agriculture 
14.13 	research, education, extension, and technology 
14.14 	transfer account under Minnesota Statutes, 
14.15 	section 41A.14, subdivision 3. The transfer in 
14.16 	this paragraph includes money for plant 
14.17 	breeders at the University of Minnesota for 
14.18 	wild rice, potatoes, and grapes. Of these 
14.19 	amounts, at least $600,000 each year is for the 
14.20 	Minnesota Agricultural Experiment Station's 
14.21 	Agriculture Rapid Response Fund under 
14.22 	Minnesota Statutes, section 41A.14, 
14.23 	subdivision 1, clause (2). Of the amount 
14.24 	appropriated in this paragraph, $1,000,000 
14.25 	each year is for transfer to the Board of 
14.26 	Regents of the University of Minnesota for 
14.27 	research to determine (1) what is causing avian 
14.28 	influenza, (2) why some fowl are more 
14.29 	susceptible, and (3) prevention measures that 
14.30 	can be taken. Of the amount appropriated in 
14.31 	this paragraph, $2,000,000 each year is for 
14.32 	grants to the Minnesota Agriculture Education 
14.33 	Leadership Council to enhance agricultural 
14.34 	education with priority given to Farm Business 
14.35 	Management challenge grants. The 
15.1 	commissioner shall transfer the remaining 
15.2 	grant funds in this appropriation each year to 
15.3 	the Board of Regents of the University of 
15.4 	Minnesota for purposes of Minnesota Statutes, 
15.5 	section 41A.14.
15.6 	To the extent practicable, funds expended 
15.7 	under Minnesota Statutes, section 41A.14, 
15.8 	subdivision 1, clauses (1) and (2), must 
15.9 	supplement and not supplant existing sources 
15.10 	and levels of funding. The commissioner may 
15.11 	use up to 4.5 percent of this appropriation for 
15.12 	costs incurred to administer the program. Any 
15.13 	unencumbered balance does not cancel at the 
15.14 	end of the first year and is available for the 
15.15 	second year.
15.16 	$10,235,000 the first year and $9,541,000 the 
15.17 	second year are for the agricultural growth, 
15.18 	research, and innovation program in 
15.19 	Minnesota Statutes, section 41A.12. No later 
15.20 	than February 1, 2016, and February 1, 2017, 
15.21 	the commissioner must report to the legislative 
15.22 	committees with jurisdiction over agriculture 
15.23 	policy and finance regarding the 
15.24 	commissioner's accomplishments and 
15.25 	anticipated accomplishments in the following 
15.26 	areas: facilitating the start-up, modernization, 
15.27 	or expansion of livestock operations including 
15.28 	beginning and transitioning livestock 
15.29 	operations; developing new markets for 
15.30 	Minnesota farmers by providing more fruits, 
15.31 	vegetables, meat, grain, and dairy for 
15.32 	Minnesota school children; assisting 
15.33 	value-added agricultural businesses to begin 
15.34 	or expand, access new markets, or diversify 
15.35 	products; developing urban agriculture; 
16.1 	facilitating the start-up, modernization, or 
16.2 	expansion of other beginning and transitioning 
16.3 	farms including loans under Minnesota 
16.4 	Statutes, section 41B.056; sustainable 
16.5 	agriculture on farm research and 
16.6 	demonstration; development or expansion of 
16.7 	food hubs and other alternative 
16.8 	community-based food distribution systems; 
16.9 	incentive payments under Minnesota Statutes, 
16.10 	sections 41A.16, 41A.17, and 41A.18; and 
16.11 	research on bioenergy, biobased content, or 
16.12 	biobased formulated products and other 
16.13 	renewable energy development. The 
16.14 	commissioner may use up to 4.5 percent of 
16.15 	this appropriation for costs incurred to 
16.16 	administer the program. Any unencumbered 
16.17 	balance does not cancel at the end of the first 
16.18 	year and is available for the second year. 
16.19 	Notwithstanding Minnesota Statutes, section 
16.20 	16A.28, the appropriations encumbered under 
16.21 	contract on or before June 30, 2017, for 
16.22 	agricultural growth, research, and innovation 
16.23 	grants are available until June 30, 2019 2020.
16.24 	The commissioner may use funds appropriated 
16.25 	for the agricultural growth, research, and 
16.26 	innovation program as provided in this 
16.27 	paragraph. The commissioner may award 
16.28 	grants to owners of Minnesota facilities 
16.29 	producing bioenergy, biobased content, or a 
16.30 	biobased formulated product; to organizations 
16.31 	that provide for on-station, on-farm field scale 
16.32 	research and outreach to develop and test the 
16.33 	agronomic and economic requirements of 
16.34 	diverse strands of prairie plants and other 
16.35 	perennials for bioenergy systems; or to certain 
16.36 	nongovernmental entities. For the purposes of 
17.1 	this paragraph, "bioenergy" includes 
17.2 	transportation fuels derived from cellulosic 
17.3 	material, as well as the generation of energy 
17.4 	for commercial heat, industrial process heat, 
17.5 	or electrical power from cellulosic materials 
17.6 	via gasification or other processes. Grants are 
17.7 	limited to 50 percent of the cost of research, 
17.8 	technical assistance, or equipment related to 
17.9 	bioenergy, biobased content, or biobased 
17.10 	formulated product production or $500,000, 
17.11 	whichever is less. Grants to nongovernmental 
17.12 	entities for the development of business plans 
17.13 	and structures related to community ownership 
17.14 	of eligible bioenergy facilities together may 
17.15 	not exceed $150,000. The commissioner shall 
17.16 	make a good-faith effort to select projects that 
17.17 	have merit and, when taken together, represent 
17.18 	a variety of bioenergy technologies, biomass 
17.19 	feedstocks, and geographic regions of the 
17.20 	state. Projects must have a qualified engineer 
17.21 	provide certification on the technology and 
17.22 	fuel source. Grantees must provide reports at 
17.23 	the request of the commissioner.
17.24 	Of the amount appropriated for the agricultural 
17.25 	growth, research, and innovation program in 
17.26 	this subdivision, $1,000,000 the first year and 
17.27 	$1,000,000 the second year are for distribution 
17.28 	in equal amounts to each of the state's county 
17.29 	fairs to preserve and promote Minnesota 
17.30 	agriculture.
17.31 	Of the amount appropriated for the agricultural 
17.32 	growth, research, and innovation program in 
17.33 	this subdivision, $500,000 in fiscal year 2016 
17.34 	and $806,000 in fiscal year 2017 are for 
17.35 	incentive payments under Minnesota Statutes, 
18.1 	sections 41A.16, 41A.17, and 41A.18. If the 
18.2 	appropriation exceeds the total amount for 
18.3 	which all producers are eligible in a fiscal 
18.4 	year, the balance of the appropriation is 
18.5 	available to the commissioner for the 
18.6 	agricultural growth, research, and innovation 
18.7 	program. Notwithstanding Minnesota Statutes, 
18.8 	section 16A.28, the first year appropriation is 
18.9 	available until June 30, 2017, and the second 
18.10 	year appropriation is available until June 30, 
18.11 	2018. The commissioner may use up to 4.5 
18.12 	percent of the appropriation for administration 
18.13 	of the incentive payment programs.
18.14 	Of the amount appropriated for the agricultural 
18.15 	growth, research, and innovation program in 
18.16 	this subdivision, $250,000 the first year is for 
18.17 	grants to communities to develop or expand 
18.18 	food hubs and other alternative 
18.19 	community-based food distribution systems. 
18.20 	Of this amount, $50,000 is for the 
18.21 	commissioner to consult with existing food 
18.22 	hubs, alternative community-based food 
18.23 	distribution systems, and University of 
18.24 	Minnesota Extension to identify best practices 
18.25 	for use by other Minnesota communities. No 
18.26 	later than December 15, 2015, the 
18.27 	commissioner must report to the legislative 
18.28 	committees with jurisdiction over agriculture 
18.29 	and health regarding the status of emerging 
18.30 	alternative community-based food distribution 
18.31 	systems in the state along with 
18.32 	recommendations to eliminate any barriers to 
18.33 	success. Any unencumbered balance does not 
18.34 	cancel at the end of the first year and is 
18.35 	available for the second year. This is a onetime 
18.36 	appropriation.
19.1 	$250,000 the first year and $250,000 the 
19.2 	second year are for grants that enable retail 
19.3 	petroleum dispensers to dispense biofuels to 
19.4 	the public in accordance with the biofuel 
19.5 	replacement goals established under 
19.6 	Minnesota Statutes, section 239.7911. A retail 
19.7 	petroleum dispenser selling petroleum for use 
19.8 	in spark ignition engines for vehicle model 
19.9 	years after 2000 is eligible for grant money 
19.10 	under this paragraph if the retail petroleum 
19.11 	dispenser has no more than 15 retail petroleum 
19.12 	dispensing sites and each site is located in 
19.13 	Minnesota. The grant money received under 
19.14 	this paragraph must be used for the installation 
19.15 	of appropriate technology that uses fuel 
19.16 	dispensing equipment appropriate for at least 
19.17 	one fuel dispensing site to dispense gasoline 
19.18 	that is blended with 15 percent of 
19.19 	agriculturally derived, denatured ethanol, by 
19.20 	volume, and appropriate technical assistance 
19.21 	related to the installation. A grant award must 
19.22 	not exceed 85 percent of the cost of the 
19.23 	technical assistance and appropriate 
19.24 	technology, including remetering of and 
19.25 	retrofits for retail petroleum dispensers and 
19.26 	replacement of petroleum dispenser projects. 
19.27 	The commissioner may use up to $35,000 of 
19.28 	this appropriation for administrative expenses. 
19.29 	The commissioner shall cooperate with biofuel 
19.30 	stakeholders in the implementation of the grant 
19.31 	program. The commissioner must report to 
19.32 	the legislative committees with jurisdiction 
19.33 	over agriculture policy and finance by 
19.34 	February 1 each year, detailing the number of 
19.35 	grants awarded under this paragraph and the 
19.36 	projected effect of the grant program on 
20.1 	meeting the biofuel replacement goals under 
20.2 	Minnesota Statutes, section 239.7911. These 
20.3 	are onetime appropriations.
20.4 	$25,000 the first year and $25,000 the second 
20.5 	year are for grants to the Southern Minnesota 
20.6 	Initiative Foundation to promote local foods 
20.7 	through an annual event that raises public 
20.8 	awareness of local foods and connects local 
20.9 	food producers and processors with potential 
20.10 	buyers.

20.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.12 	Sec. 6. Laws 2017, chapter 88, article 1, section 2, subdivision 2, is amended to read:

20.13	Subd. 2.Protection Services
 		17,821,000
		17,825,000

20.14	Appropriations by Fund
	
20.15		2018
	2019
	
20.16	General
	17,428,000
	17,428,000
	
20.17	Remediation
	393,000
	397,000
	
20.18 	(a) $25,000 the first year and $25,000 the 
20.19 	second year are to develop and maintain 
20.20 	cottage food license exemption outreach and 
20.21 	training materials.
20.22 	(b) $75,000 the first year and $75,000 the 
20.23 	second year are to coordinate the correctional 
20.24 	facility vocational training program and to 
20.25 	assist entities that have explored the feasibility 
20.26 	of establishing a USDA-certified or state 
20.27 	"equal to" food processing facility within 30 
20.28 	miles of the Northeast Regional Corrections 
20.29 	Center.
20.30 	(c) $125,000 the first year and $125,000 the 
20.31 	second year are for additional funding for the 
20.32 	noxious weed and invasive plant program. 
20.33 	These are onetime appropriations.
21.1 	(d) $250,000 the first year and $250,000 the 
21.2 	second year are for transfer to the pollinator 
21.3 	habitat and research account in the agricultural 
21.4 	fund. These are onetime transfers.
21.5 	(e) $393,000 the first year and $397,000 the 
21.6 	second year are from the remediation fund for 
21.7 	administrative funding for the voluntary 
21.8 	cleanup program.
21.9 	(f) $200,000 the first year and $200,000 the 
21.10 	second year are for the industrial hemp pilot 
21.11 	program under Minnesota Statutes, section 
21.12 	18K.09. These are onetime appropriations.
21.13 	(g) $175,000 the first year and $175,000 the 
21.14 	second year are for compensation for 
21.15 	destroyed or crippled livestock under 
21.16 	Minnesota Statutes, section 3.737. This 
21.17 	appropriation may be spent to compensate for 
21.18 	livestock that were destroyed or crippled 
21.19 	during fiscal year 2017. If the amount in the 
21.20 	first year is insufficient, the amount in the 
21.21 	second year is available in the first year. The 
21.22 	commissioner may use up to $5,000 of this 
21.23 	appropriation the second year to reimburse 
21.24 	expenses incurred by university extension 
21.25 	educators to provide fair market values of 
21.26 	destroyed or crippled livestock.
21.27 	(h) $155,000 the first year and $155,000 the 
21.28 	second year are for compensation for crop 
21.29 	damage under Minnesota Statutes, section 
21.30 	3.7371. If the amount in the first year is 
21.31 	insufficient, the amount in the second year is 
21.32 	available in the first year. The commissioner 
21.33 	may use up to $30,000 of the appropriation 
21.34 	each year to reimburse expenses incurred by 
21.35 	the commissioner or the commissioner's 
22.1 	approved agent to investigate and resolve 
22.2 	claims.
22.3 	If the commissioner determines that claims 
22.4 	made under Minnesota Statutes, section 3.737
22.5 	or 3.7371, are unusually high, amounts 
22.6 	appropriated for either program may be 
22.7 	transferred to the appropriation for the other 
22.8 	program.
22.9 	(i) $250,000 the first year and $250,000 the 
22.10 	second year are to expand current capabilities 
22.11 	for rapid detection, identification, containment, 
22.12 	control, and management of high priority plant 
22.13 	pests and pathogens. These are onetime 
22.14 	appropriations.
22.15 	(j) $300,000 the first year and $300,000 the 
22.16 	second year are for transfer to the noxious 
22.17 	weed and invasive plant species assistance 
22.18 	account in the agricultural fund to award 
22.19 	grants to local units of government under 
22.20 	Minnesota Statutes, section 18.90, with 
22.21 	preference given to local units of government 
22.22 	responding to Palmer amaranth or other weeds 
22.23 	on the eradicate list. These are onetime 
22.24 	transfers.
22.25 	(k) $120,000 the first year and $120,000 the 
22.26 	second year are for wolf-livestock conflict 
22.27 	prevention grants under article 2, section 89. 
22.28 	The commissioner must submit a report to the 
22.29 	chairs and ranking minority members of the 
22.30 	legislative committees with jurisdiction over 
22.31 	agriculture policy and finance by January 15, 
22.32 	2020, on the outcomes of the wolf-livestock 
22.33 	conflict prevention grants and whether 
22.34 	livestock compensation claims were reduced 
23.1 	in the areas that grants were awarded. These 
23.2 	are onetime appropriations.

23.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

23.4 	Sec. 7. Laws 2017, chapter 88, article 1, section 2, subdivision 4, is amended to read:

23.5
23.6	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		22,581,000
		22,636,000
	
23.7 	(a) $9,300,000 the first year and $9,300,000 
23.8 	the second year are for transfer to the 
23.9 	agriculture research, education, extension, and 
23.10 	technology transfer account under Minnesota 
23.11 	Statutes, section 41A.14, subdivision 3. Of 
23.12 	these amounts: at least $600,000 the first year 
23.13 	and $600,000 the second year are for the 
23.14 	Minnesota Agricultural Experiment Station's 
23.15 	agriculture rapid response fund under 
23.16 	Minnesota Statutes, section 41A.14, 
23.17 	subdivision 1, clause (2); $2,000,000 the first 
23.18 	year and $2,000,000 the second year are for 
23.19 	grants to the Minnesota Agriculture Education 
23.20 	Leadership Council to enhance agricultural 
23.21 	education with priority given to Farm Business 
23.22 	Management challenge grants; $350,000 the 
23.23 	first year and $350,000 the second year are 
23.24 	for potato breeding; and $450,000 the first 
23.25 	year and $450,000 the second year are for the 
23.26 	cultivated wild rice breeding project at the 
23.27 	North Central Research and Outreach Center 
23.28 	to include a tenure track/research associate 
23.29 	plant breeder. The commissioner shall transfer 
23.30 	the remaining funds in this appropriation each 
23.31 	year to the Board of Regents of the University 
23.32 	of Minnesota for purposes of Minnesota 
23.33 	Statutes, section 41A.14. Of the amount 
23.34 	transferred to the Board of Regents, up to 
23.35 	$1,000,000 each year is for research on avian 
24.1 	influenza, including prevention measures that 
24.2 	can be taken.
24.3 	To the extent practicable, funds expended 
24.4 	under Minnesota Statutes, section 41A.14, 
24.5 	subdivision 1, clauses (1) and (2), must 
24.6 	supplement and not supplant existing sources 
24.7 	and levels of funding. The commissioner may 
24.8 	use up to one percent of this appropriation for 
24.9 	costs incurred to administer the program.
24.10 	(b) $13,256,000 the first year and $13,311,000 
24.11 	the second year are for the agricultural growth, 
24.12 	research, and innovation program in 
24.13 	Minnesota Statutes, section 41A.12. Except 
24.14 	as provided below, the commissioner may 
24.15 	allocate the appropriation each year among 
24.16 	the following areas: facilitating the start-up, 
24.17 	modernization, or expansion of livestock 
24.18 	operations including beginning and 
24.19 	transitioning livestock operations; developing 
24.20 	new markets for Minnesota farmers by 
24.21 	providing more fruits, vegetables, meat, grain, 
24.22 	and dairy for Minnesota school children; 
24.23 	assisting value-added agricultural businesses 
24.24 	to begin or expand, access new markets, or 
24.25 	diversify; providing funding not to exceed 
24.26 	$250,000 each year for urban youth 
24.27 	agricultural education or urban agriculture 
24.28 	community development; providing funding 
24.29 	not to exceed $250,000 each year for the good 
24.30 	food access program under Minnesota 
24.31 	Statutes, section 17.1017; facilitating the 
24.32 	start-up, modernization, or expansion of other 
24.33 	beginning and transitioning farms including 
24.34 	by providing loans under Minnesota Statutes, 
24.35 	section 41B.056; sustainable agriculture 
25.1 	on-farm research and demonstration; 
25.2 	development or expansion of food hubs and 
25.3 	other alternative community-based food 
25.4 	distribution systems; enhancing renewable 
25.5 	energy infrastructure and use; crop research; 
25.6 	Farm Business Management tuition assistance; 
25.7 	good agricultural practices/good handling 
25.8 	practices certification assistance; establishing 
25.9 	and supporting farmer-led water management 
25.10 	councils; and implementing farmer-led water 
25.11 	quality improvement practices. The 
25.12 	commissioner may use up to 6.5 percent of 
25.13 	this appropriation for costs incurred to 
25.14 	administer the program.
25.15 	Of the amount appropriated for the agricultural 
25.16 	growth, research, and innovation program in 
25.17 	Minnesota Statutes, section 41A.12:
25.18 	(1) $1,000,000 the first year and $1,000,000 
25.19 	the second year are for distribution in equal 
25.20 	amounts to each of the state's county fairs to 
25.21 	preserve and promote Minnesota agriculture; 
25.22 	and
25.23 	(2) $1,500,000 the first year and $1,500,000 
25.24 	the second year are for incentive payments 
25.25 	under Minnesota Statutes, sections 41A.16, 
25.26 	41A.17, and 41A.18. Notwithstanding 
25.27 	Minnesota Statutes, section 16A.28, the first 
25.28 	year appropriation is available until June 30, 
25.29 	2019, and the second year appropriation is 
25.30 	available until June 30, 2020. If this 
25.31 	appropriation exceeds the total amount for 
25.32 	which all producers are eligible in a fiscal 
25.33 	year, the balance of the appropriation is 
25.34 	available for the agricultural growth, research, 
25.35 	and innovation program.
26.1 	The commissioner may use funds appropriated 
26.2 	under this subdivision to award up to two 
26.3 	value-added agriculture grants per year of up 
26.4 	to $1,000,000 per grant for new or expanding 
26.5 	agricultural production or processing facilities 
26.6 	that provide significant economic impact to 
26.7 	the region. The commissioner may use funds 
26.8 	appropriated under this subdivision for 
26.9 	additional value-added agriculture grants for 
26.10 	awards between $1,000 and $200,000 per 
26.11 	grant.
26.12 	Appropriations in clauses (1) and (2) are 
26.13 	onetime. Any unencumbered balance does not 
26.14 	cancel at the end of the first year and is 
26.15 	available for the second year. Notwithstanding 
26.16 	Minnesota Statutes, section 16A.28, 
26.17 	appropriations encumbered under contract on 
26.18 	or before June 30, 2019, for agricultural 
26.19 	growth, research, and innovation grants are 
26.20 	available until June 30, 2021 2022.
26.21 	The base budget for the agricultural growth, 
26.22 	research, and innovation program is 
26.23 	$14,275,000 for fiscal years 2020 and 2021 
26.24 	and includes funding for incentive payments 
26.25 	under Minnesota Statutes, sections 41A.16, 
26.26 	41A.17, 41A.18, and 41A.20.
26.27 	The commissioner must develop additional 
26.28 	innovative production incentive programs to 
26.29 	be funded by the agricultural growth, research, 
26.30 	and innovation program.
26.31 	The commissioner must consult with the 
26.32 	commissioner of transportation, the 
26.33 	commissioner of administration, and local 
26.34 	units of government to identify parcels of 
27.1 	publicly owned land that are suitable for urban 
27.2 	agriculture.
27.3 	(c) $25,000 the first year and $25,000 the 
27.4 	second year are for grants to the Southern 
27.5 	Minnesota Initiative Foundation to promote 
27.6 	local foods through an annual event that raises 
27.7 	public awareness of local foods and connects 
27.8 	local food producers and processors with 
27.9 	potential buyers.

27.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

27.11 	ARTICLE 2
27.12 	AGRICULTURE STATUTORY CHANGES

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

27.22 	Sec. 2. Minnesota Statutes 2018, section 17.118, subdivision 2, is amended to read:
27.23 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in this 
27.24 	subdivision have the meanings given them.
27.25 	(b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed 
27.26 	Cervidae, Ratitae, bison, sheep, horses, and llamas.
27.27 	(c) "Qualifying expenditures" means the amount spent for:
27.28 	(1) the acquisition, construction, or improvement of buildings or facilities for the 
27.29 	production of livestock or livestock products;
27.30 	(2) the development of pasture for use by livestock including, but not limited to, the 
27.31 	acquisition, development, or improvement of:
28.1 	(i) lanes used by livestock that connect pastures to a central location;
28.2 	(ii) watering systems for livestock on pasture including water lines, booster pumps, and 
28.3 	well installations;
28.4 	(iii) livestock stream crossing stabilization; and
28.5 	(iv) fences; or
28.6 	(3) the acquisition of equipment for livestock housing, confinement, feeding, and waste 
28.7 	management including, but not limited to, the following:
28.8 	(i) freestall barns;
28.9 	(ii) watering facilities;
28.10 	(iii) feed storage and handling equipment;
28.11 	(iv) milking parlors;
28.12 	(v) robotic equipment;
28.13 	(vi) scales;
28.14 	(vii) milk storage and cooling facilities;
28.15 	(viii) bulk tanks;
28.16 	(ix) computer hardware and software and associated equipment used to monitor the 
28.17 	productivity and feeding of livestock;
28.18 	(x) manure pumping and storage facilities;
28.19 	(xi) swine farrowing facilities;
28.20 	(xii) swine and cattle finishing barns;
28.21 	(xiii) calving facilities;
28.22 	(xiv) digesters;
28.23 	(xv) equipment used to produce energy;
28.24 	(xvi) on-farm processing facilities equipment;
28.25 	(xvii) fences, including but not limited to farmed Cervidae perimeter fences required 
28.26 	under section 35.155, subdivision 4; and
28.27 	(xviii) livestock pens and corrals and sorting, restraining, and loading chutes.
29.1 	Except for qualifying pasture development expenditures under clause (2), qualifying 
29.2 	expenditures only include amounts that are allowed to be capitalized and deducted under 
29.3 	either section 167 or 179 of the Internal Revenue Code in computing federal taxable income. 
29.4 	Qualifying expenditures do not include an amount paid to refinance existing debt.

29.5 	Sec. 3. Minnesota Statutes 2018, section 18B.07, subdivision 2, is amended to read:
29.6 		Subd. 2.Prohibited pesticide use. (a) A person may not use, store, handle, distribute, 
29.7 	or dispose of a pesticide, rinsate, pesticide container, or pesticide application equipment in 
29.8 	a manner:
29.9 	(1) that is inconsistent with a label or labeling as defined by FIFRA;
29.10 	(2) that endangers humans, damages agricultural products, food, livestock, fish, or 
29.11 	wildlife; or
29.12 	(3) that will cause unreasonable adverse effects on the environment.
29.13 	(b) A person may not direct a pesticide onto property beyond the boundaries of the target 
29.14 	site. A person may not apply a pesticide resulting in damage to adjacent property. A person 
29.15 	who applies a pesticide resulting in damage to adjacent property that is part of the state 
29.16 	outdoor recreation system is subject to enhanced monetary penalties as provided in section 
29.17 	18D.40.
29.18 	(c) A person may not directly apply a pesticide on a human by overspray or target site 
29.19 	spray, except when:
29.20 	(1) the pesticide is intended for use on a human;
29.21 	(2) the pesticide application is for mosquito control operations;
29.22 	(3) the pesticide application is for control of gypsy moth, forest tent caterpillar, or other 
29.23 	pest species, as determined by the commissioner, and the pesticide used is a biological 
29.24 	agent; or
29.25 	(4) the pesticide application is for a public health risk, as determined by the commissioner 
29.26 	of health, and the commissioner of health, in consultation with the commissioner of 
29.27 	agriculture, determines that the application is warranted based on the commissioner's 
29.28 	balancing of the public health risk with the risk that the pesticide application poses to the 
29.29 	health of the general population, with special attention to the health of children.
29.30 	(d) For pesticide applications under paragraph (c), clause (2), the following conditions 
29.31 	apply:
30.1 	(1) no practicable and effective alternative method of control exists;
30.2 	(2) the pesticide is among the least toxic available for control of the target pest; and
30.3 	(3) notification to residents in the area to be treated is provided at least 24 hours before 
30.4 	application through direct notification, posting daily on the treating organization's website, 
30.5 	if any, and by sending a broadcast e-mail to those persons who request notification of such, 
30.6 	of those areas to be treated by adult mosquito control techniques during the next calendar 
30.7 	day. For control operations related to human disease, notice under this paragraph may be 
30.8 	given less than 24 hours in advance.
30.9 	(e) For pesticide applications under paragraph (c), clauses (3) and (4), the following 
30.10 	conditions apply:
30.11 	(1) no practicable and effective alternative method of control exists;
30.12 	(2) the pesticide is among the least toxic available for control of the target pest; and
30.13 	(3) notification of residents in the area to be treated is provided by direct notification 
30.14 	and through publication in a newspaper of general circulation within the affected area.
30.15 	(f) For purposes of this subdivision, "direct notification" may include mailings, public 
30.16 	meetings, posted placards, neighborhood newsletters, or other means of contact designed 
30.17 	to reach as many residents as possible. Public meetings held to meet this requirement for 
30.18 	adult mosquito control, under paragraph (d), must be held within each city or town where 
30.19 	the pesticide treatments are to be made, at a time and location that is convenient for residents 
30.20 	of the area where the treatments will occur.
30.21 	(g) A person may not apply a pesticide in a manner so as to expose a worker in an 
30.22 	immediately adjacent, open field.
30.23 	(h) Notwithstanding that the application is done in a manner consistent with the label 
30.24 	or labeling, it is a violation of this chapter to directly apply a pesticide to a site where an 
30.25 	application has not been: (1) requested, ordered, contracted for, or permitted; or (2) performed 
30.26 	pursuant to paragraph (c), clause (2), (3), or (4).

30.27 	Sec. 4. Minnesota Statutes 2018, section 18C.425, subdivision 6, is amended to read:
30.28 		Subd. 6.Payment of inspection fee. (a) The person who registers and distributes in the 
30.29 	state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall 
30.30 	pay the inspection fee to the commissioner.
31.1 	(b) The person licensed under section 18C.415 who distributes a fertilizer to a person 
31.2 	not required to be so licensed shall pay the inspection fee to the commissioner, except as 
31.3 	exempted under section 18C.421, subdivision 1, paragraph (b).
31.4 	(c) The person responsible for payment of the inspection fees for fertilizers, soil 
31.5 	amendments, or plant amendments sold and used in this state must pay an inspection fee of 
31.6 	39 cents per ton, and until June 30, 2019 2024, an additional 40 cents per ton, of fertilizer, 
31.7 	soil amendment, and plant amendment sold or distributed in this state, with a minimum of 
31.8 	$10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner must deposit 
31.9 	all revenue from the additional 40 cents per ton fee in the agricultural fertilizer research and 
31.10 	education account in section 18C.80. Products sold or distributed to manufacturers or 
31.11 	exchanged between them are exempt from the inspection fee imposed by this subdivision 
31.12 	if the products are used exclusively for manufacturing purposes.
31.13 	(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant 
31.14 	amendment, or soil amendment distribution amounts and inspection fees paid for a period 
31.15 	of three years.

31.16 	Sec. 5. Minnesota Statutes 2018, section 18C.70, subdivision 5, is amended to read:
31.17 		Subd. 5.Expiration. This section expires June 30, 2020 2025.

31.18 	Sec. 6. Minnesota Statutes 2018, section 18C.71, subdivision 1, is amended to read:
31.19 		Subdivision 1.Eligible projects. Eligible project activities include research, education, 
31.20 	and technology transfer related to the production and application of fertilizer, soil 
31.21 	amendments, and other plant amendments. Chosen projects must contain a component of 
31.22 	outreach that achieves a timely dissemination of findings and their applicability to the 
31.23 	production agricultural community or metropolitan fertilizer users.

31.24 	Sec. 7. Minnesota Statutes 2018, section 18C.71, subdivision 4, is amended to read:
31.25 		Subd. 4.Expiration. This section expires June 30, 2020 2025.

31.26 	Sec. 8. Minnesota Statutes 2018, section 18C.80, subdivision 2, is amended to read:
31.27 		Subd. 2.Expiration. This section expires June 30, 2020 2025.

31.28 	Sec. 9. [18D.40] ENHANCED PENALTIES; OUTDOOR RECREATION LANDS.
31.29 	Notwithstanding limitations placed on administrative or civil penalty amounts under 
31.30 	sections 18D.315 and 18D.325, a person who applies a pesticide resulting in damage to 
32.1 	adjacent property that is part of the state outdoor recreation system may be subject to a 
32.2 	monetary penalty equal to twice the amount that the commissioner would otherwise assess 
32.3 	for a comparable violation.

32.4 	Sec. 10. Minnesota Statutes 2018, section 18K.02, subdivision 3, is amended to read:
32.5 		Subd. 3.Industrial hemp. "Industrial hemp" means the plant Cannabis sativa L. and 
32.6 	any part of the plant, whether growing or not, including the plant's seeds, and all the plant's 
32.7 	derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether 
32.8 	growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 
32.9 	percent on a dry weight basis. Industrial hemp is not marijuana as defined in section 152.01, 
32.10 	subdivision 9.

32.11 	Sec. 11. Minnesota Statutes 2018, section 18K.03, is amended to read:
32.12 	18K.03 AGRICULTURAL CROP; POSSESSION AUTHORIZED.
32.13 	Industrial hemp is an agricultural crop in this state. A person may possess, transport, 
32.14 	process, sell, or buy industrial hemp that is grown pursuant to this chapter or lawfully grown 
32.15 	in another state.

32.16 	Sec. 12. Minnesota Statutes 2018, section 28A.16, is amended to read:
32.17 	28A.16 PERSONS SELLING LIQUOR.
32.18 	(a) The provisions of the Minnesota consolidated food licensing law, sections 28A.01
32.19 	to 28A.16 and acts amendatory thereto, shall not apply to persons licensed to sell 3.2 percent 
32.20 	malt liquor "on-sale" as provided in section 340A.403, or to persons licensed to sell 
32.21 	intoxicating liquors "on-sale" or "off-sale" as provided in sections 340A.404 to 340A.407, 
32.22 	provided that these persons sell only ice manufactured and packaged by another, or bottled 
32.23 	or canned soft drinks and prepacked candy at retail.
32.24 	(b) When an exclusive liquor store is not exempt under paragraph (a), the commissioner 
32.25 	must exclude all gross sales of off-sale alcoholic beverages when determining the applicable 
32.26 	license fee under section 28A.08, subdivision 3. For purposes of this paragraph, "exclusive 
32.27 	liquor store" and "alcoholic beverage" have the meanings given in section 340A.101.

32.28 	Sec. 13. Minnesota Statutes 2018, section 41B.02, subdivision 10a, as amended by Laws 
32.29 	2019, chapter 38, section 21, is amended to read:
32.30 		Subd. 10a.Livestock expansion and modernization. "Livestock expansion and 
32.31 	modernization" means the purchase of a livestock farm or improvements to a livestock 
33.1 	operation, including the purchase and construction or installation of improvements to land, 
33.2 	buildings, and other permanent structures, including equipment incorporated in or 
33.3 	permanently affixed to the land, buildings, or structures, which are useful for and intended 
33.4 	to be used for the purpose of raising livestock.

33.5 	Sec. 14. Minnesota Statutes 2018, section 41B.045, is amended to read:
33.6 	41B.045 LIVESTOCK EXPANSION AND MODERNIZATION LOAN PROGRAM.
33.7 		Subdivision 1.Establishment. The authority may establish, adopt rules for, and 
33.8 	implement a loan program to finance livestock expansions and modernizations in the state.
33.9 		Subd. 2.Loan participation. The authority may participate in a livestock expansion 
33.10 	and modernization loan with an eligible lender to a livestock farmer who meets the 
33.11 	requirements of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively 
33.12 	engaged in a livestock operation. A prospective borrower must have a total net worth, 
33.13 	including assets and liabilities of the borrower's spouse and dependents, of less than 
33.14 	$1,700,000 in 2017 and an amount in subsequent years which is adjusted for inflation by 
33.15 	multiplying that amount by the cumulative inflation rate as determined by the United States 
33.16 	All-Items Consumer Price Index.
33.17 	Participation is limited to 45 percent of the principal amount of the loan or $525,000, 
33.18 	whichever is less. The interest rates and repayment terms of the authority's participation 
33.19 	interest may be different from the interest rates and repayment terms of the lender's retained 
33.20 	portion of the loan.
33.21 		Subd. 3.Specifications.  Each loan participation must be secured by a mortgage on real 
33.22 	property and such other security as the authority may require.
33.23 		Subd. 4.Application and origination fee. The authority may impose a reasonable 
33.24 	nonrefundable application fee for each application for a loan participation and an origination 
33.25 	fee for each loan issued under the livestock expansion and modernization loan program. 
33.26 	The origination fee initially shall be set at 1.5 percent and the application fee at $50. The 
33.27 	authority may review the fees annually and make adjustments as necessary. The fees must 
33.28 	be deposited in the state treasury and credited to the Rural Finance Authority administrative 
33.29 	account established in section 41B.03.
33.30 		Subd. 5.Interest rate. The interest rate per annum on the livestock expansion and 
33.31 	modernization loan participation must be at the rate of interest determined by the authority 
33.32 	to be necessary to provide for the timely payment of principal and interest when due on 
33.33 	bonds or other obligations of the authority issued under this chapter, to provide financing 
34.1 	for loan participations made under the livestock expansion and modernization loan program, 
34.2 	and to provide for reasonable and necessary costs of issuing, carrying, administering, and 
34.3 	securing the bonds or notes and to pay the costs incurred and to be incurred by the authority 
34.4 	in the implementation of the livestock expansion and modernization loan program.

34.5 	Sec. 15. Minnesota Statutes 2018, section 41B.055, subdivision 4, is amended to read:
34.6 		Subd. 4.Eligible expenditures. Money may be used for loans for the acquisition of 
34.7 	equipment for animal housing, confinement, animal feeding, milk production, and waste 
34.8 	management, including the following, if related to animal husbandry:
34.9 	(1) fences;
34.10 	(2) watering facilities;
34.11 	(3) feed storage and handling equipment;
34.12 	(4) milking parlors;
34.13 	(5) milking equipment, including robotic equipment;
34.14 	(6) scales;
34.15 	(7) milk storage and cooling facilities;
34.16 	(8) manure pumping and storage facilities;
34.17 	(9) capital investment in pasture;
34.18 	(10) hoop barns;
34.19 	(11) portable structures;
34.20 	(12) hay and forage equipment; and
34.21 	(13) related structural work for the installation of equipment.

34.22 	Sec. 16. Minnesota Statutes 2018, section 116.06, is amended by adding a subdivision to 
34.23 	read:
34.24 		Subd. 16a.Pastures. "Pastures" means areas, including winter feeding areas as part of 
34.25 	a grazing area, where grass or other growing plants are used for grazing of livestock and 
34.26 	where the concentration of animals allows a vegetative cover to be maintained during the 
34.27 	growing season. "Pastures" also includes agricultural land that is used for growing crops 
34.28 	during the growing season and is used for grazing of livestock on vegetation or crop residues 
34.29 	during the winter. In either case, a cover of vegetation or crop residues is not required:
35.1 	(1) in the immediate vicinity of supplemental feeding or watering devices;
35.2 	(2) in associated corrals and chutes where livestock are gathered for the purpose of 
35.3 	sorting, veterinary services, loading and unloading trucks and trailers, and other necessary 
35.4 	activities related to good animal husbandry practices;
35.5 	(3) in associated livestock access lanes used to convey livestock to and from areas of 
35.6 	the pasture; and
35.7 	(4) in sacrificial areas: (i) that are part of a larger pasture system; (ii) are used to 
35.8 	temporarily accommodate livestock due to an extraordinary situation for as short a time 
35.9 	period as possible not to exceed 90 days during the growing season; (iii) are used to protect 
35.10 	other pasture areas when adverse soil or weather conditions pose a risk of damaging the 
35.11 	pastures; and (iv) on which the vegetation is naturally restored or replanted after the adverse 
35.12 	soil or weather conditions are removed and the livestock are moved to other areas of the 
35.13 	pasture.

35.14 	Sec. 17. Minnesota Statutes 2018, section 116.07, subdivision 7, is amended to read:
35.15 		Subd. 7.Counties; processing applications for animal lot permits. Any Minnesota 
35.16 	county board may, by resolution, with approval of the Pollution Control Agency, assume 
35.17 	responsibility for processing applications for permits required by the Pollution Control 
35.18 	Agency under this section for livestock feedlots, poultry lots or other animal lots. The 
35.19 	responsibility for permit application processing, if assumed by a county, may be delegated 
35.20 	by the county board to any appropriate county officer or employee.
35.21 	(a) For the purposes of this subdivision, the term "processing" includes:
35.22 	(1) the distribution to applicants of forms provided by the Pollution Control Agency;
35.23 	(2) the receipt and examination of completed application forms, and the certification, 
35.24 	in writing, to the Pollution Control Agency either that the animal lot facility for which a 
35.25 	permit is sought by an applicant will comply with applicable rules and standards, or, if the 
35.26 	facility will not comply, the respects in which a variance would be required for the issuance 
35.27 	of a permit; and
35.28 	(3) rendering to applicants, upon request, assistance necessary for the proper completion 
35.29 	of an application.
35.30 	(b) For the purposes of this subdivision, the term "processing" may include, at the option 
35.31 	of the county board, issuing, denying, modifying, imposing conditions upon, or revoking 
35.32 	permits pursuant to the provisions of this section or rules promulgated pursuant to it, subject 
36.1 	to review, suspension, and reversal by the Pollution Control Agency. The Pollution Control 
36.2 	Agency shall, after written notification, have 15 days to review, suspend, modify, or reverse 
36.3 	the issuance of the permit. After this period, the action of the county board is final, subject 
36.4 	to appeal as provided in chapter 14. For permit applications filed after October 1, 2001, 
36.5 	section 15.99 applies to feedlot permits issued by the agency or a county pursuant to this 
36.6 	subdivision.
36.7 	(c) For the purpose of administration of rules adopted under this subdivision, the 
36.8 	commissioner and the agency may provide exceptions for cases where the owner of a feedlot 
36.9 	has specific written plans to close the feedlot within five years. These exceptions include 
36.10 	waiving requirements for major capital improvements.
36.11 	(d) For purposes of this subdivision, a discharge caused by an extraordinary natural 
36.12 	event such as a precipitation event of greater magnitude than the 25-year, 24-hour event, 
36.13 	tornado, or flood in excess of the 100-year flood is not a "direct discharge of pollutants."
36.14 	(e) In adopting and enforcing rules under this subdivision, the commissioner shall 
36.15 	cooperate closely with other governmental agencies.
36.16 	(f) The Pollution Control Agency shall work with the Minnesota Extension Service, the 
36.17 	Department of Agriculture, the Board of Water and Soil Resources, producer groups, local 
36.18 	units of government, as well as with appropriate federal agencies such as the Natural 
36.19 	Resources Conservation Service and the Farm Service Agency, to notify and educate 
36.20 	producers of rules under this subdivision at the time the rules are being developed and 
36.21 	adopted and at least every two years thereafter.
36.22 	(g) The Pollution Control Agency shall adopt rules governing the issuance and denial 
36.23 	of permits for livestock feedlots, poultry lots or other animal lots pursuant to this section. 
36.24 	Pastures are exempt from the rules authorized under this paragraph. No feedlot permit shall 
36.25 	include any terms or conditions that impose any requirements related to any pastures owned 
36.26 	or utilized by the feedlot operator other than restrictions under a manure management plan. 
36.27 	A feedlot permit is not required for livestock feedlots with more than ten but less than 50 
36.28 	animal units; provided they are not in shoreland areas. A livestock feedlot permit does not 
36.29 	become required solely because of a change in the ownership of the buildings, grounds, or 
36.30 	feedlot. These rules apply both to permits issued by counties and to permits issued by the 
36.31 	Pollution Control Agency directly.
36.32 	(h) The Pollution Control Agency shall exercise supervising authority with respect to 
36.33 	the processing of animal lot permit applications by a county.
37.1 	(i) Any new rules or amendments to existing rules proposed under the authority granted 
37.2 	in this subdivision, or to implement new fees on animal feedlots, must be submitted to the 
37.3 	members of legislative policy and finance committees with jurisdiction over agriculture and 
37.4 	the environment prior to final adoption. The rules must not become effective until 90 days 
37.5 	after the proposed rules are submitted to the members.
37.6 	(j) Until new rules are adopted that provide for plans for manure storage structures, any 
37.7 	plans for a liquid manure storage structure must be prepared or approved by a registered 
37.8 	professional engineer or a United States Department of Agriculture, Natural Resources 
37.9 	Conservation Service employee.
37.10 	(k) A county may adopt by ordinance standards for animal feedlots that are more stringent 
37.11 	than standards in Pollution Control Agency rules.
37.12 	(l) After January 1, 2001, a county that has not accepted delegation of the feedlot permit 
37.13 	program must hold a public meeting prior to the agency issuing a feedlot permit for a feedlot 
37.14 	facility with 300 or more animal units, unless another public meeting has been held with 
37.15 	regard to the feedlot facility to be permitted.
37.16 	(m) After the proposed rules published in the State Register, volume 24, number 25, are 
37.17 	finally adopted, the agency may not impose additional conditions as a part of a feedlot 
37.18 	permit, unless specifically required by law or agreed to by the feedlot operator.
37.19 	(n) For the purposes of feedlot permitting, a discharge from land-applied manure or a 
37.20 	manure stockpile that is managed according to agency rule must not be subject to a fine for 
37.21 	a discharge violation.
37.22 	(o) For the purposes of feedlot permitting, manure that is land applied, or a manure 
37.23 	stockpile that is managed according to agency rule, must not be considered a discharge into 
37.24 	waters of the state, unless the discharge is to waters of the state, as defined by section 
37.25 	103G.005, subdivision 17, except type 1 or type 2 wetlands, as defined in section 103G.005, 
37.26 	subdivision 17b, and does not meet discharge standards established for feedlots under agency 
37.27 	rule.
37.28 	(p) Unless the upgrade is needed to correct an immediate public health threat under 
37.29 	section 145A.04, subdivision 8, or the facility is determined to be a concentrated animal 
37.30 	feeding operation under Code of Federal Regulations, title 40, section 122.23, in effect on 
37.31 	April 15, 2003, the agency may not require a feedlot operator:
38.1 	(1) to spend more than $3,000 to upgrade an existing feedlot with less than 300 animal 
38.2 	units unless cost-share money is available to the feedlot operator for 75 percent of the cost 
38.3 	of the upgrade; or
38.4 	(2) to spend more than $10,000 to upgrade an existing feedlot with between 300 and 
38.5 	500 animal units, unless cost-share money is available to the feedlot operator for 75 percent 
38.6 	of the cost of the upgrade or $50,000, whichever is less.
38.7 	(q) For the purposes of this section, "pastures" means areas, including winter feeding 
38.8 	areas as part of a grazing area, where grass or other growing plants are used for grazing and 
38.9 	where the concentration of animals allows a vegetative cover to be maintained during the 
38.10 	growing season except that vegetative cover is not required:
38.11 	(1) in the immediate vicinity of supplemental feeding or watering devices;
38.12 	(2) in associated corrals and chutes where livestock are gathered for the purpose of 
38.13 	sorting, veterinary services, loading and unloading trucks and trailers, and other necessary 
38.14 	activities related to good animal husbandry practices; and
38.15 	(3) in associated livestock access lanes used to convey livestock to and from areas of 
38.16 	the pasture.
38.17 	(r) (q) A feedlot operator who stores and applies up to 100,000 gallons per calendar year 
38.18 	of private truck wash wastewater resulting from trucks that transport animals or supplies to 
38.19 	and from the feedlot does not require a permit to land-apply industrial by-products if the 
38.20 	feedlot operator stores and applies the wastewater in accordance with Pollution Control 
38.21 	Agency requirements for land applications of industrial by-product that do not require a 
38.22 	permit.
38.23 	(s) (r) A feedlot operator who holds a permit from the Pollution Control Agency to 
38.24 	land-apply industrial by-products from a private truck wash is not required to have a certified 
38.25 	land applicator apply the private truck wash wastewater if the wastewater is applied by the 
38.26 	feedlot operator to cropland owned or leased by the feedlot operator or by a commercial 
38.27 	animal waste technician licensed by the commissioner of agriculture under chapter 18C. 
38.28 	For purposes of this paragraph and paragraph (r) (q), "private truck wash" means a truck 
38.29 	washing facility owned or leased, operated, and used only by a feedlot operator to wash 
38.30 	trucks owned or leased by the feedlot operator and used to transport animals or supplies to 
38.31 	and from the feedlot.

39.1 	Sec. 18. Minnesota Statutes 2018, section 116.07, subdivision 7d, is amended to read:
39.2 		Subd. 7d.Exemption. (a) Notwithstanding subdivision 7 or Minnesota Rules, chapter 
39.3 	7020, to the contrary, and notwithstanding the proximity to public or private waters, an 
39.4 	owner or resident of agricultural land on which livestock have been allowed to pasture at 
39.5 	any time during the ten-year period beginning January 1, 2010, is permanently exempt from 
39.6 	requirements related to feedlot or manure management on that land for so long as the property 
39.7 	remains in pasture.
39.8 	(b) For the purposes of this subdivision, "pasture" means areas where livestock graze 
39.9 	on grass or other growing plants. Pasture also means agricultural land where livestock are 
39.10 	allowed to forage during the winter time and which land is used for cropping purposes in 
39.11 	the growing season. In either case, the concentration of animals must be such that a vegetative 
39.12 	cover, whether of grass, growing plants, or crops, is maintained during the growing season 
39.13 	except in the immediate vicinity of temporary supplemental feeding or watering devices.

39.14 	Sec. 19. INDUSTRIAL HEMP; RULEMAKING.
 39.15 	After consulting with stakeholders, the commissioner of agriculture may use the expedited 
39.16 	rulemaking process in Minnesota Statutes, section 14.389, to adopt the rules required under 
39.17 	Minnesota Statutes, section 18K.06, to conform to the Agriculture Improvement Act of 
39.18 	2018, Public Law 115-334, and federal rules authorized under that act. The commissioner 
39.19 	of agriculture's authority to adopt rules under this section expires June 30, 2020.

39.20 	Sec. 20. INDUSTRIAL HEMP; PLAN AND REPORT.
 39.21 	(a) The commissioner of agriculture must submit a plan to the secretary of the United 
39.22 	States Department of Agriculture and request primary regulatory authority over the 
39.23 	production of industrial hemp in this state, as provided under section 10113 of the Agriculture 
39.24 	Improvement Act of 2018.
39.25 	(b) The commissioner of agriculture, in consultation with the commissioners of public 
39.26 	safety and health, must develop a framework for regulating the possession and use of 
39.27 	tetrahydrocannabinol resulting from industrial hemp processing, including but not limited 
39.28 	to the extraction of cannabidiol or other components. No later than February 15, 2020, the 
39.29 	commissioner of agriculture must submit the proposed framework to the chairs and ranking 
39.30 	minority members of the legislative committees and divisions with jurisdiction over 
39.31 	agriculture, public safety, and health.

40.1 	Sec. 21. EMERGING FARMERS; REPORT.
 40.2 	No later than February 1, 2020, the commissioner of agriculture must report 
40.3 	recommendations to the legislative committees and divisions with jurisdiction over agriculture 
40.4 	finance regarding how best to cultivate and support emerging farmers, with priority given 
40.5 	to emerging farmers who are women, veterans, persons with disabilities, American Indian 
40.6 	or Alaskan Native, and members of communities of color.

40.7 	Sec. 22. NURSERY STOCK; REPORT.
 40.8 	By March 1, 2020, the commissioner of agriculture must report recommendations to the 
40.9 	members of the legislative committees or divisions with jurisdiction over agriculture policy 
40.10 	regarding the regulatory oversight of nursery stock labeled as beneficial to pollinators. The 
40.11 	report must include a summary of the Minnesota Department of Agriculture's technical 
40.12 	ability to test for insecticides on different parts of plants that comprise nursery stock, 
40.13 	including the minimum detectable concentration for various insecticides, and the cost per 
40.14 	test.

40.15 	ARTICLE 3
40.16 	BIOINCENTIVE PROGRAM CHANGES

40.17 	Section 1. Minnesota Statutes 2018, section 41A.15, subdivision 2, is amended to read:
40.18 		Subd. 2.Advanced biofuel. "Advanced biofuel" has the meaning given in section 
40.19 	239.051, subdivision 1a. means a renewable fuel, other than ethanol derived from corn 
40.20 	starch, that has lifecycle greenhouse gas emissions that are at least 50 percent less than 
40.21 	baseline lifecycle greenhouse gas emissions.

40.22 	Sec. 2. Minnesota Statutes 2018, section 41A.15, is amended by adding a subdivision to 
40.23 	read:
40.24 		Subd. 2e.Biomass. "Biomass" means any organic matter that is available on a renewable 
40.25 	or recurring basis, including agricultural crops and trees, wood and wood waste and residues, 
40.26 	plants including aquatic plants, grasses, residues, fibers, animal waste, and the organic 
40.27 	portion of solid wastes.

40.28 	Sec. 3. Minnesota Statutes 2018, section 41A.15, subdivision 10, is amended to read:
40.29 		Subd. 10.Renewable chemical. "Renewable chemical" means a chemical with biobased 
40.30 	content., polymer, monomer, plastic, or composite material that is entirely produced from 
40.31 	biomass.

41.1 	Sec. 4. Minnesota Statutes 2018, section 41A.16, subdivision 1, is amended to read:
41.2 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
41.3 	source from Minnesota at least 80 percent raw materials from Minnesota. of the biomass 
41.4 	used to produce an advanced biofuel, except that, if a facility is sited 50 miles or less from 
41.5 	the state border, raw materials biomass used to produce an advanced biofuel may be sourced 
41.6 	from outside of Minnesota, but only if at least 80 percent of the biomass is sourced from 
41.7 	within a 100-mile radius of the facility or from within Minnesota. Raw materials must be 
41.8 	from agricultural or forestry sources or from solid waste. The facility must be located in 
41.9 	Minnesota, must begin production at a specific location by June 30, 2025, and must not 
41.10 	begin operating above 23,750 MMbtu of quarterly advanced biofuel production before July 
41.11 	1, 2015. Eligible facilities include existing companies and facilities that are adding advanced 
41.12 	biofuel production capacity, or retrofitting existing capacity, as well as new companies and 
41.13 	facilities. Production of conventional corn ethanol and conventional biodiesel is not eligible. 
41.14 	Eligible advanced biofuel facilities must produce at least 23,7501,500 MMbtu of advanced 
41.15 	biofuel quarterly.
41.16 	(b) No payments shall be made for advanced biofuel production that occurs after June 
41.17 	30, 2035, for those eligible biofuel producers under paragraph (a).
41.18 	(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility 
41.19 	for payments under this section to an advanced biofuel facility at a different location.
41.20 	(d) A producer that ceases production for any reason is ineligible to receive payments 
41.21 	under this section until the producer resumes production.
41.22 	(e) Renewable chemical production for which payment has been received under section 
41.23 	41A.17, and biomass thermal production for which payment has been received under section 
41.24 	41A.18, are not eligible for payment under this section.
41.25 	(f) Biobutanol is eligible under this section.

41.26 	Sec. 5. Minnesota Statutes 2018, section 41A.16, subdivision 2, is amended to read:
41.27 		Subd. 2.Payment amounts; limits. (a) The commissioner shall make payments to 
41.28 	eligible producers of advanced biofuel. The amount of the payment for each eligible 
41.29 	producer's annual production is $2.1053 per MMbtu for advanced biofuel production from 
41.30 	cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar or,
41.31 	starch, oil, or animal fat at a specific location for ten years after the start of production.
41.32 	(b) Total payments under this section to an eligible biofuel producer in a fiscal year may 
41.33 	not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. Total payments 
42.1 	under this section to all eligible biofuel producers in a fiscal year may not exceed the amount 
42.2 	necessary for 17,100,000 MMbtu of biofuel production. The commissioner shall award 
42.3 	payments on a first-come, first-served basis within the limits of available funding If the 
42.4 	total amount for which all producers are eligible in a quarter exceeds the amount available 
42.5 	for payments, the commissioner shall make the payments on a pro rata basis.
42.6 	(c) For purposes of this section, an entity that holds a controlling interest in more than 
42.7 	one advanced biofuel facility is considered a single eligible producer.

42.8 	Sec. 6. Minnesota Statutes 2018, section 41A.16, subdivision 4, is amended to read:
42.9 		Subd. 4.Cellulosic forestry biomass requirements. All forestry-derived cellulosic 
42.10 	biomass used for advanced biofuel production must be produced using Minnesota state
42.11 	forest biomass harvesting guidelines or the equivalent. All cellulosic biomass from brushlands 
42.12 	must be produced using Minnesota brushland harvesting biomass harvest harvesting
42.13 	guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from land 
42.14 	parcels greater than 160 acres must be certified by the Forest Stewardship Council, the 
42.15 	Sustainable Forestry Initiative, or the American Tree Farm System. Uncertified land from 
42.16 	parcels of 160 acres or less, tribal lands, and federal land must be harvested by a logger 
42.17 	who has completed training for biomass harvesting from the Minnesota logger education 
42.18 	program or the equivalent and have a forest stewardship management plan., as defined in 
42.19 	section 290C.02, subdivision 7, or the equivalent, and be harvested by a logger who has 
42.20 	completed training for biomass harvesting from the Minnesota logger education program 
42.21 	or the equivalent.

42.22 	Sec. 7. Minnesota Statutes 2018, section 41A.17, subdivision 1, is amended to read:
42.23 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this program section
42.24 	must source from Minnesota at least 80 percent biobased content from Minnesota. of the 
42.25 	biomass used to produce a renewable chemical, except that, if a facility is sited 50 miles or 
42.26 	less from the state border, biobased content mustbiomass used to produce a renewable 
42.27 	chemical may be sourced from outside of Minnesota, but only if at least 80 percent of the 
42.28 	biomass is sourced from within a 100-mile radius of the facility or from within Minnesota. 
42.29 	Biobased content must be from agricultural or forestry sources or from solid waste. The 
42.30 	facility must be located in Minnesota, must begin production at a specific location by June 
42.31 	30, 2025, and must not begin production of 750,000250,000 pounds of chemicals quarterly 
42.32 	before January 1, 2015. Eligible facilities include existing companies and facilities that are 
42.33 	adding production capacity, or retrofitting existing capacity, as well as new companies and 
43.1 	facilities. Eligible renewable chemical facilities must produce at least 750,000250,000
43.2 	pounds of renewable chemicals quarterly. Renewable chemicals produced through processes 
43.3 	that are fully commercial before January 1, 2000, are not eligible.
43.4 	(b) No payments shall be made for renewable chemical production that occurs after June 
43.5 	30, 2035, for those eligible renewable chemical producers under paragraph (a).
43.6 	(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility 
43.7 	for payments under this section to a renewable chemical facility at a different location.
43.8 	(d) A producer that ceases production for any reason is ineligible to receive payments 
43.9 	under this section until the producer resumes production.
43.10 	(e) Advanced biofuel production for which payment has been received under section 
43.11 	41A.16, and biomass thermal production for which payment has been received under section 
43.12 	41A.18, are not eligible for payment under this section.

43.13 	Sec. 8. Minnesota Statutes 2018, section 41A.17, subdivision 2, is amended to read:
43.14 		Subd. 2.Payment amounts; bonus; limits. (a) The commissioner shall make payments 
43.15 	to eligible producers of renewable chemicals located in the state. The amount of the payment 
43.16 	for each producer's annual production is $0.03 per pound of sugar-derived renewable 
43.17 	chemical, $0.03 per pound of cellulosic sugar, starch, oil, or animal fat, and $0.06 per pound 
43.18 	of cellulosic-derived renewable chemical produced at a specific location for ten years after 
43.19 	the start of production.
43.20 	(b) An eligible facility producing renewable chemicals using agricultural cellulosic 
43.21 	biomass is eligible for a 20 percent bonus payment for each pound produced from agricultural 
43.22 	biomass that is derived from perennial crop or cover crop biomass.
43.23 	(c) Total payments under this section to an eligible renewable chemical producer in a 
43.24 	fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable 
43.25 	chemical production. Total payments under this section to all eligible renewable chemical 
43.26 	producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of 
43.27 	renewable chemical production. The commissioner shall award payments on a first-come, 
43.28 	first-served basis within the limits of available funding If the total amount for which all 
43.29 	producers are eligible in a quarter exceeds the amount available for payments, the 
43.30 	commissioner shall make the payments on a pro rata basis.
43.31 	(d) An eligible facility may blend renewable chemicals with other chemicals that are 
43.32 	not renewable chemicals, but only the percentage attributable to renewable chemicals in 
43.33 	the blended product is eligible to receive payment.
44.1 	(d) (e) For purposes of this section, an entity that holds a controlling interest in more 
44.2 	than one renewable chemical production facility is considered a single eligible producer.

44.3 	Sec. 9. Minnesota Statutes 2018, section 41A.17, subdivision 3, is amended to read:
44.4 		Subd. 3.Cellulosic forestry biomass requirements. All forestry-derived cellulosic 
44.5 	biomass used for renewable chemical production must be produced using Minnesota state
44.6 	forest biomass harvesting guidelines or the equivalent. All cellulosic biomass from brushlands 
44.7 	must be produced using Minnesota brushland harvesting biomass harvest harvesting
44.8 	guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from land 
44.9 	parcels greater than 160 acres must be certified by the Forest Stewardship Council, the 
44.10 	Sustainable Forestry Initiative, or the American Tree Farm System. Uncertified land from 
44.11 	parcels of 160 acres or less, tribal lands, and federal land must be harvested by a logger 
44.12 	who has completed training for biomass harvesting from the Minnesota logger education 
44.13 	program or the equivalent and have a forest stewardship management plan, as defined in 
44.14 	section 290C.02, subdivision 7, or the equivalent, and be harvested by a logger who has 
44.15 	completed training for biomass harvesting from the Minnesota logger education program 
44.16 	or the equivalent.

44.17 	Sec. 10. Minnesota Statutes 2018, section 41A.18, subdivision 1, is amended to read:
44.18 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
44.19 	source from Minnesota at least 80 percent raw materials from Minnesota. of the biomass 
44.20 	used for biomass thermal production, except that, if a facility is sited 50 miles or less from 
44.21 	the state border, raw materials shouldbiomass used for biomass thermal production may 
44.22 	be sourced from outside of Minnesota, but only if at least 80 percent of the biomass is 
44.23 	sourced from within a 100-mile radius of the facility, or from within Minnesota. Raw 
44.24 	materials Biomass must be from agricultural or forestry sources. The facility must be located 
44.25 	in Minnesota, must have begun production at a specific location by June 30, 2025, and must 
44.26 	not begin before July 1, 2015. Eligible facilities include existing companies and facilities 
44.27 	that are adding production capacity, or retrofitting existing capacity, as well as new 
44.28 	companies and facilities. Eligible biomass thermal production facilities must produce at 
44.29 	least 250 MMbtu of biomass thermal quarterly.
44.30 	(b) No payments shall be made for biomass thermal production that occurs after June 
44.31 	30, 2035, for those eligible biomass thermal producers under paragraph (a).
45.1 	(c) An eligible producer of biomass thermal production shall not transfer the producer's 
45.2 	eligibility for payments under this section to a biomass thermal production facility at a 
45.3 	different location.
45.4 	(d) A producer that ceases production for any reason is ineligible to receive payments 
45.5 	under this section until the producer resumes production.
45.6 	(e) Biofuel production for which payment has been received under section 41A.16, and 
45.7 	renewable chemical production for which payment has been received under section 41A.17, 
45.8 	are not eligible for payment under this section.

45.9 	Sec. 11. Minnesota Statutes 2018, section 41A.18, subdivision 2, is amended to read:
45.10 		Subd. 2.Payment amounts; bonus; limits; blending. (a) The commissioner shall make 
45.11 	payments to eligible producers of biomass thermal located in the state. The amount of the 
45.12 	payment for each producer's annual production is $5.00 per MMbtu of biomass thermal 
45.13 	production produced at a specific location for ten years after the start of production.
45.14 	(b) An eligible facility producing biomass thermal using agricultural cellulosic biomass 
45.15 	is eligible for a 20 percent bonus payment for each MMbtu produced from agricultural 
45.16 	biomass that is derived from perennial crop or cover crop biomass.
45.17 	(c) Total payments under this section to an eligible thermal producer in a fiscal year 
45.18 	may not exceed the amount necessary for 30,000 MMbtu of thermal production. Total 
45.19 	payments under this section to all eligible thermal producers in a fiscal year may not exceed 
45.20 	the amount necessary for 150,000 MMbtu of total thermal production. The commissioner 
45.21 	shall award payments on a first-come, first-served basis within the limits of available funding
45.22 	If the total amount for which all producers are eligible in a quarter exceeds the amount 
45.23 	available for payments, the commissioner shall make the payments on a pro rata basis.
45.24 	(d) An eligible facility may blend a cellulosic feedstock with other fuels in the biomass 
45.25 	thermal production facility, but only the percentage attributable to cellulosic material biomass 
45.26 	meeting the cellulosic forestry biomass requirements or agricultural cellulosic biomass 
45.27 	sourcing plan is eligible to receive payment.
45.28 	(e) When a facility is eligible due to adding production capacity or retrofitting existing 
45.29 	capacity, the entire amount of biomass meeting the cellulosic forestry biomass requirements 
45.30 	or agricultural cellulosic biomass sourcing plan is assumed to have been used for the biomass 
45.31 	thermal production from the added or retrofitted production capacity.
45.32 	(f) For purposes of this section, an entity that holds a controlling interest in more than 
45.33 	one biomass thermal production facility is considered a single eligible producer.

46.1 	Sec. 12. Minnesota Statutes 2018, section 41A.18, subdivision 3, is amended to read:
46.2 		Subd. 3.Cellulosic forestry biomass requirements. All forestry-derived cellulosic 
46.3 	biomass used for biomass thermal production must be produced using Minnesota state forest
46.4 	biomass harvesting guidelines or the equivalent. All cellulosic biomass from brushland
46.5 	brushlands must be produced using Minnesota brushland harvesting biomass harvesting 
46.6 	guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from land 
46.7 	parcels greater than 160 acres must be certified by the Forest Stewardship Council, the 
46.8 	Sustainable Forestry Initiative, or the American Tree Farm System. Uncertified land from 
46.9 	parcels of 160 acres or less, tribal lands, and federal land must be harvested by a logger 
46.10 	who has completed training for biomass harvesting from the Minnesota logger education 
46.11 	program or the equivalent and have a forest stewardship management plan., as defined in 
46.12 	section 290C.02, subdivision 7, or the equivalent and be harvested by a logger who has 
46.13 	completed training for biomass harvesting from the Minnesota logger education program 
46.14 	or the equivalent.

46.15 	Sec. 13. REPEALER.
 46.16 	Minnesota Statutes 2018, section 41A.15, subdivisions 2a and 2b, are repealed.

46.17 	ARTICLE 4
46.18 	GRAIN BUYERS AND GRAIN WAREHOUSES

46.19 	Section 1. Minnesota Statutes 2018, section 223.16, subdivision 1, is amended to read:
46.20 		Subdivision 1.Applicability. For the purpose of sections 223.15 to 223.22 223.23, the 
46.21 	terms defined in this section have the meanings given them.

46.22 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain buyer 
46.23 	licenses issued on or after that date.

46.24 	Sec. 2. Minnesota Statutes 2018, section 223.16, subdivision 2a, is amended to read:
46.25 		Subd. 2a.Cash sale. (a) "Cash sale" means:
46.26 	(a) a sale that is not reduced to writing as a voluntary extension of credit contract and 
46.27 	for which payment is tendered to the seller not later than the close of business on the next 
46.28 	business day after the sale, either in cash or by check, or by mailing or wiring funds to the 
46.29 	seller's account in the amount of at least 80 percent of the value of the grain at delivery; or.
46.30 	(b) a sale of a shipment of grain which is part of a multiple shipment sale, for which a 
46.31 	scale ticket clearly marked "CASH" has been received by the seller before completion of 
47.1 	the entire sale, and for which payment is tendered in cash or by check not later than ten 
47.2 	days after the sale of that shipment, except that when the entire sale is completed, payment 
47.3 	is tendered in cash or by check not later than the close of business on the next business day, 
47.4 	or within 48 hours, whichever is later. For the purposes of this subdivision, "cash" means 
47.5 	currency or an equivalent manner of payment including but not limited to a certified check; 
47.6 	a cashier's check; and a postal, bank, or express money order in which the amount of payment 
47.7 	is verified and secured before issuance.

47.8 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain buyer 
47.9 	licenses issued on or after that date.

47.10 	Sec. 3. Minnesota Statutes 2018, section 223.16, subdivision 4, is amended to read:
47.11 		Subd. 4.Grain. "Grain" means any cereal grain, coarse grain, or oilseed in unprocessed 
47.12 	form for which a standard has been established by the United States Secretary of Agriculture 
47.13 	or the Minnesota Board of Grain Standards, dry edible beans, or other agricultural crops 
47.14 	designated by the commissioner by rule.

47.15 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain buyer 
47.16 	licenses issued on or after that date.

47.17 	Sec. 4. Minnesota Statutes 2018, section 223.17, subdivision 3, is amended to read:
47.18 		Subd. 3.Grain buyers and storage account; fees. (a) The commissioner shall set the 
47.19 	fees for inspections under sections 223.15 to 223.22 at levels necessary to pay the expenses 
47.20 	of administering and enforcing sections 223.15 to 223.22.
47.21 	The fee for any license issued or renewed after June 30, 2005, shall be set according to 
47.22 	the following schedule:
47.23 	(a) (1) $140 plus $110 for each additional location for grain buyers whose gross annual 
47.24 	purchases are less than $100,000;
47.25 	(b) (2) $275 plus $110 for each additional location for grain buyers whose gross annual 
47.26 	purchases are at least $100,000, but not more than $750,000;
47.27 	(c) (3) $415 plus $220 for each additional location for grain buyers whose gross annual 
47.28 	purchases are more than $750,000 but not more than $1,500,000;
47.29 	(d) (4) $550 plus $220 for each additional location for grain buyers whose gross annual 
47.30 	purchases are more than $1,500,000 but not more than $3,000,000; and
48.1 	(e) (5) $700 plus $220 for each additional location for grain buyers whose gross annual 
48.2 	purchases are more than $3,000,000.
48.3 	(b) In addition to the license fee required under paragraph (a), a grain buyer must pay 
48.4 	to the commissioner an annual examination fee for each licensed location, as follows:

48.548.6		Bushel Capacity
	Examination 
Fee
		
48.7		Examinations without a grain measure
	$
	100
		
48.8		Less than 150,001
	$
	300
		
48.9		150,001 to 250,000
	$
	425
		
48.10		250,001 to 500,000
	$
	545
		
48.11		500,001 to 750,000
	$
	700
		
48.12		750,001 to 1,000,000
	$
	865
		
48.13		1,000,001 to 1,200,000
	$
	1,040
		
48.14		1,200,001 to 1,500,000
	$
	1,205
		
48.15		1,500,001 to 2,000,000
	$
	1,380
		
48.16		More than 2,000,000
	$
	1,555
		
48.17 	(c) The fee for any supplemental examination required by the commissioner under section 
48.18 	223.23 is $55 per hour per examiner.
48.19 	(d) A licensed grain buyer meeting the annual examination requirements under section 
48.20 	223.23 is exempt from the fees under paragraph (b) if the annual examination is conducted 
48.21 	by the Agricultural Marketing Service of the United State Department of Agriculture.
48.22 	(e) A penalty amount not to exceed ten percent of the fees due may be imposed by the 
48.23 	commissioner for each month for which the fees are delinquent.
48.24 	(f) There is created the grain buyers and storage account in the agricultural fund. Money 
48.25 	collected pursuant to sections 223.15 to 223.19 223.23 shall be paid into the state treasury 
48.26 	and credited to the grain buyers and storage account and. Money in the account, including 
48.27 	interest, is appropriated to the commissioner for the administration and enforcement of 
48.28 	sections 223.15 to 223.22 223.23.

48.29 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain buyer 
48.30 	licenses issued on or after that date.

49.1 	Sec. 5. Minnesota Statutes 2018, section 223.17, subdivision 4, is amended to read:
49.2 		Subd. 4.Bond. (a) Except as provided in paragraphs (c) to (e), before a grain buyer's 
49.3 	license is issued, the applicant for the license must file with the commissioner a bond in a 
49.4 	penal sum prescribed by the commissioner but not less than the following amounts:
49.5 	(1) $10,000 for grain buyers whose gross annual purchases are $100,000 or less;
49.6 	(2) $20,000 for grain buyers whose gross annual purchases are more than $100,000 but 
49.7 	not more than $750,000;
49.8 	(3) $30,000 for grain buyers whose gross annual purchases are more than $750,000 but 
49.9 	not more than $1,500,000;
49.10 	(4) $40,000 for grain buyers whose gross annual purchases are more than $1,500,000 
49.11 	but not more than $3,000,000;
49.12 	(5) $50,000 for grain buyers whose gross annual purchases are more than $3,000,000 
49.13 	but not more than $6,000,000;
49.14 	(6) $70,000 for grain buyers whose gross annual purchases are more than $6,000,000 
49.15 	but not more than $12,000,000;
49.16 	(7) $125,000 for grain buyers whose gross annual purchases are more than $12,000,000 
49.17 	but not more than $24,000,000; and
49.18 	(8) $150,000 for grain buyers whose gross annual purchases exceed $24,000,000.
49.19 	(b) A grain buyer who has filed a bond with the commissioner prior to July 1, 2004, is 
49.20 	not required to increase the amount of the bond to comply with this section until July 1, 
49.21 	2005. The commissioner may postpone an increase in the amount of the bond until July 1, 
49.22 	2006, if a licensee demonstrates that the increase will impose undue financial hardship on 
49.23 	the licensee, and that producers will not be harmed as a result of the postponement. The 
49.24 	commissioner may impose other restrictions on a licensee whose bond increase has been 
49.25 	postponed. The amount of the bond shall be based on the most recent gross annual grain 
49.26 	purchase report of the grain buyer.
49.27 	(c) A first-time applicant for a grain buyer's license shall file a $50,000 bond with the 
49.28 	commissioner. This bond shall remain in effect for the first year of the license. Thereafter, 
49.29 	the licensee shall comply with the applicable bonding requirements contained in paragraph 
49.30 	(a), clauses (1) to (8).
49.31 	(d) In lieu of the bond required by this subdivision the applicant may deposit with the 
49.32 	commissioner of management and budget cash, a certified check, a cashier's check, a postal, 
50.1 	bank, or express money order, assignable bonds or notes of the United States, or an 
50.2 	assignment of a bank savings account or investment certificate or an irrevocable bank letter 
50.3 	of credit as defined in section 336.5-102, in the same amount as would be required for a 
50.4 	bond.
50.5 	(e) A grain buyer who purchases grain immediately upon delivery solely with cash; a 
50.6 	certified check; a cashier's check; or a postal, bank, or express money order is exempt from 
50.7 	this subdivision if the grain buyer's gross annual purchases are $100,000 or less.
50.8 	(e) (f) Bonds must be continuous until canceled. To cancel a bond, a surety must provide 
50.9 	90 days' written notice of the bond's termination date to the licensee and the commissioner.

50.10 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain buyer 
50.11 	licenses issued on or after that date.

50.12 	Sec. 6. Minnesota Statutes 2018, section 223.17, subdivision 5, is amended to read:
50.13 		Subd. 5.Cash sales; manner of payment. For a cash sale of a shipment of grain which 
50.14 	is part of a multiple shipment sale, the grain buyer shall tender payment to the seller in cash 
50.15 	or, by check, or by wiring or mailing payment to the seller's account. The grain buyer must 
50.16 	tender payment as required under this subdivision not later than ten days after the sale of 
50.17 	that shipment, except that when the entire sale is completed, payment shall be tendered not 
50.18 	later than the close of business on the next day after the sale of the shipment, or within 48 
50.19 	hours after the sale of the shipment, whichever is later. For other cash sales the grain buyer, 
50.20 	before the close of business on the next business day after the sale, shall tender payment to 
50.21 	the seller in cash or by check, or shall wire or mail funds to the seller's account in the amount 
50.22 	of at least 80 percent of the value of the grain at the time of delivery. The grain buyer shall 
50.23 	complete final settlement as rapidly as possible through ordinary diligence.

50.24 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain buyer 
50.25 	licenses issued on or after that date.

50.26 	Sec. 7. Minnesota Statutes 2018, section 223.17, subdivision 6, is amended to read:
50.27 		Subd. 6.Financial statements. (a) Except as allowed in paragraph (c), a grain buyer 
50.28 	licensed under this chapter must annually submit to the commissioner may require an annual
50.29 	a financial statement from a licensee which has been prepared in accordance with generally 
50.30 	accepted accounting principles.and which meets the following requirements The annual 
50.31 	financial statement required under this subdivision must also:
50.32 	(1) the financial statement shall include, but not be limited to the following:
51.1 	(i) a balance sheet;
51.2 	(ii) a statement of income (profit and loss);
51.3 	(iii) a statement of retained earnings;
51.4 	(iv) a statement of changes in financial position; and
51.5 	(v) a statement of the dollar amount of grain purchased in the previous fiscal year of the 
51.6 	grain buyer.;
51.7 	(2) the financial statement shall be accompanied by a compilation report of the financial 
51.8 	statement that is prepared by a grain commission firm or a management firm approved by 
51.9 	the commissioner or by an independent public accountant, in accordance with standards 
51.10 	established by the American Institute of Certified Public Accountants. Grain buyers 
51.11 	purchasing less than 150,000 bushels of grain per calendar year may submit a financial 
51.12 	statement prepared by a public accountant who is not an employee or a relative within the 
51.13 	third degree of kindred according to civil law.;
51.14 	(3) the financial statement shall be accompanied by a certification by the chief executive 
51.15 	officer or the chief executive officer's designee of the licensee, and where applicable, all 
51.16 	members of the governing board of directors under penalty of perjury, that the financial 
51.17 	statement accurately reflects the financial condition of the licensee for the period specified 
51.18 	in the statement.;
51.19 	(4) for grain buyers purchasing under $5,000,000 of grain annually, be reviewed by a 
51.20 	certified public accountant in accordance with standards established by the American Institute 
51.21 	of Certified Public Accountants, and must show that the financial statements are free from 
51.22 	material misstatements; and
51.23 	(5) for grain buyers purchasing $5,000,000 or more of grain annually, be audited by a 
51.24 	certified public accountant in accordance with standards established by the American Institute 
51.25 	of Certified Public Accountants and must include an opinion statement from the certified 
51.26 	public accountant.
51.27 	(b) Only one financial statement must be filed for a chain of warehouses owned or 
51.28 	operated as a single business entity, unless otherwise required by the commissioner. Any 
51.29 	grain buyer having a net worth in excess of $500,000,000 need not file the financial statement 
51.30 	required by this subdivision but must provide the commissioner with a certified net worth 
51.31 	statement. All financial statements filed with the commissioner are private or nonpublic 
51.32 	data as provided in section 13.02.
52.1 	(c) A grain buyer who purchases grain immediately upon delivery solely with cash; a 
52.2 	certified check; a cashier's check; or a postal, bank, or express money order is exempt from 
52.3 	this subdivision if the grain buyer's gross annual purchases are $100,000 or less.
52.4 	(d) The commissioner shall annually provide information on a person's fiduciary duties 
52.5 	to each licensee. To the extent practicable, the commissioner must direct each licensee to 
52.6 	provide this information to all persons required to certify the licensee's financial statement 
52.7 	under paragraph (a), clause (3).

52.8 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain buyer 
52.9 	licenses issued on or after that date.

52.10 	Sec. 8. Minnesota Statutes 2018, section 223.177, subdivision 2, is amended to read:
52.11 		Subd. 2.Oral contracts. Any grain buyer entering into a voluntary extension of credit 
52.12 	contract orally or by phone shall give or mail to the seller a written confirmation conforming 
52.13 	to the requirements of section 223.175before the close of the next business day within ten 
52.14 	days of entering the voluntary extension of credit contract. Written confirmation of oral 
52.15 	contracts must meet the requirements of subdivision 3.

52.16 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain buyer 
52.17 	licenses issued on or after that date.

52.18 	Sec. 9. Minnesota Statutes 2018, section 223.177, subdivision 3, is amended to read:
52.19 		Subd. 3.Contracts reduced to writing. A voluntary extension of credit contract must 
52.20 	be reduced to writing by the grain buyer,and mailed or given to the seller before the close 
52.21 	of the next business day after the contract is entered into or, in the case of an oral or phone 
52.22 	contract, after the written confirmation is received by the seller. Provided, however, that if 
52.23 	a scale ticket has been received by the seller prior to the completion of the grain shipment, 
52.24 	the contract must be reduced to writing within ten days after the sale, but not later than the 
52.25 	close of the next business day after the completion of the entire sale, and signed by both 
52.26 	buyer and seller within ten days of the date of delivery of the grain. The form of the contract 
52.27 	shall comply with the requirements of section 223.175. A grain buyer may use an electronic 
52.28 	version of a voluntary extension of credit contract that contains the same information as a 
52.29 	written document and that conforms to the requirements of this chapter to which a seller 
52.30 	has applied an electronic signature in place of a written document. There must not at any 
52.31 	time be an electronic and paper voluntary extension of credit contract representing the same 
52.32 	lot of grain.

53.1 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain buyer 
53.2 	licenses issued on or after that date.

53.3 	Sec. 10. Minnesota Statutes 2018, section 223.19, is amended to read:
53.4 	223.19 RULES.
53.5 	The commissioner may make rules pursuant to chapter 14 to carry out the provisions of 
53.6 	sections 223.15 to 223.22 223.23.

53.7 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain buyer 
53.8 	licenses issued on or after that date.

53.9 	Sec. 11. [223.23] ANNUAL EXAMINATION REQUIRED; SUPPLEMENTAL 
53.10 	EXAMINATIONS.
53.11 	A licensed grain buyer is subject to an annual examination conducted by the commissioner 
53.12 	or the Agricultural Marketing Service of the United States Department of Agriculture. 
53.13 	Examinations must include a measurement of all grain owned and maintained by the grain 
53.14 	buyer. The commissioner may require supplemental examinations of a grain buyer as the 
53.15 	commissioner deems necessary.

53.16 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain buyer 
53.17 	licenses issued on or after that date.

53.18 	Sec. 12. Minnesota Statutes 2018, section 232.21, subdivision 7, is amended to read:
53.19 		Subd. 7.Grain. "Grain" means any cereal grain, coarse grain, or oilseed in unprocessed 
53.20 	form for which a standard has been established by the United States Secretary of Agriculture 
53.21 	or the Minnesota Board of Grain Standards, dry edible beans, or agricultural crops designated 
53.22 	by the commissioner by rule.

53.23 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain storage 
53.24 	licenses issued on or after that date.

53.25 	Sec. 13. Minnesota Statutes 2018, section 232.21, is amended by adding a subdivision to 
53.26 	read:
53.27 		Subd. 7a.Grain bank. "Grain bank" means a feed-processing plant that receives and 
53.28 	stores grain it processes and returns to the grain's owner in amounts, at intervals, and with 
53.29 	added ingredients that are mutually agreeable to the grain's owner and the person operating 
53.30 	the plant. Grain bank does not include a seed cleaning plant.

54.1 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain storage 
54.2 	licenses issued on or after that date.

54.3 	Sec. 14. Minnesota Statutes 2018, section 232.21, is amended by adding a subdivision to 
54.4 	read:
54.5 		Subd. 15.Temporary storage. "Temporary storage" means grain stored in outdoor piles 
54.6 	or suitable structures, which are not in use for the entirety of the license period.

54.7 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain storage 
54.8 	licenses issued on or after that date.

54.9 	Sec. 15. Minnesota Statutes 2018, section 232.22, subdivision 3, is amended to read:
54.10 		Subd. 3.Fees; grain buyers and storage account. (a) There is created in the agricultural 
54.11 	fund an account known as the grain buyers and storage account. The commissioner shall 
54.12 	set the fees for examinations, certifications, and licenses under sections 232.20 to 232.24
54.13 	at levels necessary to pay the costs of administering and enforcing sections 232.20 to 232.24. 
54.14 	All money collected pursuant to sections 232.20 to 232.24 shall be paid by the commissioner 
54.15 	into the state treasury and credited to the grain buyers and storage account and. Money in 
54.16 	the account, including interest, is appropriated to the commissioner for the administration 
54.17 	and enforcement of sections 232.20 to 232.24.
54.18 	(b) All money collected pursuant to chapter 231 shall be paid by the commissioner into 
54.19 	the grain buyers and storage account and. Money in the account is appropriated to the 
54.20 	commissioner for the administration and enforcement of chapter 231.
54.21 	(c) The fees for a license to store grain are as follows:
54.22 	(a) (1) For a license to store grain, $110 for each home rule charter or statutory city or 
54.23 	town in which a public grain warehouse is operated.
54.24 	(b) (2) In addition to the license fee required under clause (1), a person with a license 
54.25 	to store grain in a public grain warehouse is subject to an examination fee for each licensed 
54.26 	location, based on the following schedule for one examination as follows:

54.2754.28		Bushel Capacity
	Examination 
Fee
		
54.29		Less than 150,001
	$
	300
		
54.30		150,001 to 250,000
	$
	425
		
54.31		250,001 to 500,000
	$
	545
		
54.32		500,001 to 750,000
	$
	700
		
55.1		750,001 to 1,000,000
	$
	865
		
55.2		1,000,001 to 1,200,000
	$
	1,040
		
55.3		1,200,001 to 1,500,000
	$
	1,205
		
55.4		1,500,001 to 2,000,000
	$
	1,380
		
55.5		More than 2,000,000
	$
	1,555
		
55.6 	(c) (3) The fee for the second examination supplemental examinations required by the 
55.7 	commissioner under section 232.24 is $55 per hour per examiner for warehouse operators 
55.8 	who choose to have it performed by the commissioner.
55.9 	(d) A penalty amount not to exceed ten percent of the fees due may be imposed by the 
55.10 	commissioner for each month for which the fees are delinquent.

55.11 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain storage 
55.12 	licenses issued on or after that date.

55.13 	Sec. 16. Minnesota Statutes 2018, section 232.22, subdivision 4, is amended to read:
55.14 		Subd. 4.Bonding. (a) Before a license is issued, except as provided under paragraph 
55.15 	(c), the applicant for a public grain warehouse operator's license shall file with the 
55.16 	commissioner a bond in a penal sum prescribed by the commissioner based on the annual 
55.17 	average storage liability as stated on the statement of grain in storage report or on the gross 
55.18 	annual grain purchase report, whichever is greater, and applying the following amounts:
55.19 	(1) $10,000 for storages with annual average storage liability of more than $0 but not 
55.20 	more than $25,000;
55.21 	(2) $20,000 for storages with annual average storage liability of more than $25,001 but 
55.22 	not more than $50,000;
55.23 	(3) $30,000 for storages with annual average storage liability of more than $50,001 but 
55.24 	not more than $75,000;
55.25 	(4) $50,000 for storages with annual average storage liability of more than $75,001 but 
55.26 	not more than $100,000;
55.27 	(5) $75,000 for storages with annual average storage liability of more than $100,001 
55.28 	but not more than $200,000;
55.29 	(6) $125,000 for storages with annual average storage liability of more than $200,001 
55.30 	but not more than $300,000;
55.31 	(7) $175,000 for storages with annual average storage liability of more than $300,001 
55.32 	but not more than $400,000;
56.1 	(8) $225,000 for storages with annual average storage liability of more than $400,001 
56.2 	but not more than $500,000;
56.3 	(9) $275,000 for storages with annual average storage liability of more than $500,001 
56.4 	but not more than $600,000;
56.5 	(10) $325,000 for storages with annual average storage liability of more than $600,001 
56.6 	but not more than $700,000;
56.7 	(11) $375,000 for storages with annual average storage liability of more than $700,001 
56.8 	but not more than $800,000;
56.9 	(12) $425,000 for storages with annual average storage liability of more than $800,001 
56.10 	but not more than $900,000;
56.11 	(13) $475,000 for storages with annual average storage liability of more than $900,001 
56.12 	but not more than $1,000,000; and
56.13 	(14) $500,000 for storages with annual average storage liability of more than $1,000,000.
56.14 	(b) Bonds must be continuous until canceled. To cancel a bond, a surety must provide 
56.15 	90 days' written notice of the bond's termination date to the licensee and the commissioner.
56.16 	(c) In lieu of the bond required by this subdivision, the applicant may deposit with the 
56.17 	commissioner of management and budget an irrevocable bank letter of credit as defined in 
56.18 	section 336.5-102, in the same amount as would be required for a bond.

56.19 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain storage 
56.20 	licenses issued on or after that date.

56.21 	Sec. 17. Minnesota Statutes 2018, section 232.23, subdivision 3, is amended to read:
56.22 		Subd. 3.Grain delivered considered stored. All grain delivered to a public grain 
56.23 	warehouse operator shall be considered stored at the time of delivery, unless arrangements 
56.24 	have been made with the public grain warehouse operator prior to or at the time of delivery 
56.25 	to apply the grain on contract, for shipment or consignment or for cash sale. Grain may be 
56.26 	held in open storage or placed on a warehouse receipt. Warehouse receipts must be issued 
56.27 	for all grain held in open storage within six months of delivery to the warehouse unless the 
56.28 	depositor has signed a statement that the depositor does not desire a warehouse receipt. The 
56.29 	warehouse operator's tariff applies for any grain that is retained in open storage or under 
56.30 	warehouse receipt. All grain in temporary storage must be owned and exclusively maintained 
56.31 	by the licensee. Grain assigned to grain bank is considered stored grain.

57.1 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain storage 
57.2 	licenses issued on or after that date.

57.3 	Sec. 18. Minnesota Statutes 2018, section 232.24, is amended to read:
57.4 	232.24 SCHEDULE OF INSPECTION, FINANCIAL REPORTS.
57.5 		Subdivision 1.Schedule of examination. A licensee under sections 232.20 to 232.24
57.6 	is subject to two examinations an examination annually conducted by the commissioner or 
57.7 	the Agricultural Marketing Service of the United States Department of Agriculture. The 
57.8 	commissioner may, by rule, authorize one examination to be conducted by a qualified 
57.9 	nongovernmental unit require supplemental examinations of a licensee as the commissioner 
57.10 	deems necessary.
57.11 		Subd. 2.Financial reports. A licensee under sections 232.20 to 232.24 upon request
57.12 	must provide to the commissioner a copy of the financial reports of an audit conducted by 
57.13 	a qualified nongovernmental unit containing information the commissioner requires report 
57.14 	that satisfies the requirements under section 223.17, subdivision 6.

57.15 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies to grain storage 
57.16 	licenses issued on or after that date.

57.17 	Sec. 19. FIDUCIARY INFORMATION; GRAIN BUYING AND STORAGE.
 57.18 	The commissioner of agriculture, in consultation with the Minnesota State Bar 
57.19 	Association, must develop information concerning the fiduciary duties of the chief executive 
57.20 	officer and, where applicable, the governing board of directors of each licensed grain buyer 
57.21 	and licensed public grain warehouse. No later than March 1, 2020, the commissioner must 
57.22 	submit the information to the legislative committees and divisions with jurisdiction over 
57.23 	agriculture policy and finance.

57.24 	ARTICLE 5
57.25 	HOUSING FINANCE AGENCY APPROPRIATIONS

57.26	Section 1. APPROPRIATIONS.
 	
57.27 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
57.28 	for the purposes specified in this article. The appropriations are from the general fund, or 
57.29 	another named fund, and are available for the fiscal years indicated for each purpose. The 
57.30 	figures "2020" and "2021" used in this article mean that the appropriations listed under them 
57.31 	are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. "The 
58.1 	first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" is 
58.2 	fiscal years 2020 and 2021.

58.3				APPROPRIATIONS
	
58.4				Available for the Year
	
58.5				Ending June 30
	
58.6					2020
		2021

58.7	Sec. 2. HOUSING FINANCE AGENCY

58.8	Subdivision 1.Total Appropriation
 	$
	64,048,000
	$
	56,548,000
	
58.9 	(a) The amounts that may be spent for each 
58.10 	purpose are specified in the following 
58.11 	subdivisions.
58.12 	(b) Unless otherwise specified, this 
58.13 	appropriation is for transfer to the housing 
58.14 	development fund for the programs specified 
58.15 	in this section. Except as otherwise indicated, 
58.16 	this transfer is part of the agency's permanent 
58.17 	budget base.

58.18	Subd. 2.Challenge Program
 		17,925,000
		12,925,000
	
58.19 	(a) This appropriation is for the economic 
58.20 	development and housing challenge program 
58.21 	under Minnesota Statutes, section 462A.33.
58.22 	(b) Of this amount, $1,208,000 each year shall 
58.23 	be made available during the first 11 months 
58.24 	of the fiscal year exclusively for housing 
58.25 	projects for American Indians. Any funds not 
58.26 	committed to housing projects for American 
58.27 	Indians in the first 11 months of the fiscal year 
58.28 	shall be available for any eligible activity 
58.29 	under Minnesota Statutes, section 462A.33.
58.30 	(c) The base for this program in fiscal year 
58.31 	2022 and beyond is $12,925,000.

59.1	Subd. 3.Workforce Housing Development
 		2,000,000
		2,000,000
	
59.2 	This appropriation is for the workforce 
59.3 	housing development program under 
59.4 	Minnesota Statutes, section 462A.39. If 
59.5 	requested by the applicant and approved by 
59.6 	the agency, funded properties may include a 
59.7 	portion of income and rent restricted units. 
59.8 	Funded properties may include 
59.9 	owner-occupied homes.

59.10
59.11	Subd. 4.Manufactured Home Park 
Infrastructure Grants
 		2,000,000
		0
	
59.12 	(a) This appropriation is for manufactured 
59.13 	home park infrastructure grants under 
59.14 	Minnesota Statutes, section 462A.2035, 
59.15 	subdivision 1b.
59.16 	(b) The base for this program in fiscal year 
59.17 	2022 and beyond is $1,000,000.

59.18	Subd. 5.Workforce Homeownership Program
 		500,000
		0
	
59.19 	(a) This appropriation is for the workforce 
59.20 	homeownership program under Minnesota 
59.21 	Statutes, section 462A.38.
59.22 	(b) The base for this program in fiscal year 
59.23 	2022 and beyond is $250,000.

59.24	Subd. 6.Housing Trust Fund
 		11,646,000
		11,646,000
	
59.25 	This appropriation is for deposit in the housing 
59.26 	trust fund account created under Minnesota 
59.27 	Statutes, section 462A.201, and may be used 
59.28 	for the purposes provided in that section.

59.29	Subd. 7.Homework Starts with Home
 		1,750,000
		1,750,000
	
59.30 	This appropriation is for the homework starts 
59.31 	with home program under Minnesota Statutes, 
59.32 	sections 462A.201, subdivision 2, paragraph 
59.33 	(a), clause (4), and 462A.204, subdivision 8, 
60.1 	to provide assistance to homeless or highly 
60.2 	mobile families with children eligible for 
60.3 	enrollment in a prekindergarten through grade 
60.4 	12 academic program.

60.5	Subd. 8.Rental Assistance for Mentally Ill
 		4,338,000
		4,338,000
	
60.6 	This appropriation is for the rental housing 
60.7 	assistance program for persons with a mental 
60.8 	illness or families with an adult member with 
60.9 	a mental illness under Minnesota Statutes, 
60.10 	section 462A.2097. Among comparable 
60.11 	proposals, the agency shall prioritize those 
60.12 	proposals that target, in part, eligible persons 
60.13 	who desire to move to more integrated, 
60.14 	community-based settings.

60.15	Subd. 9.Family Homeless Prevention
 		10,269,000
		10,269,000
	
60.16 	This appropriation is for the family homeless 
60.17 	prevention and assistance programs under 
60.18 	Minnesota Statutes, section 462A.204.

60.19	Subd. 10.Home Ownership Assistance Fund
 		885,000
		885,000
	
60.20 	This appropriation is for the home ownership 
60.21 	assistance program under Minnesota Statutes, 
60.22 	section 462A.21, subdivision 8. The agency 
60.23 	shall continue to strengthen its efforts to 
60.24 	address the disparity gap in the 
60.25 	homeownership rate between white 
60.26 	households and indigenous American Indians 
60.27 	and communities of color. To better 
60.28 	understand and address the disparity gap, the 
60.29 	agency is required to collect, on a voluntary 
60.30 	basis, demographic information regarding 
60.31 	race, color, national origin, and sex of 
60.32 	applicants for agency programs intended to 
60.33 	benefit homeowners and homebuyers.

60.34	Subd. 11.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
61.1 	(a) This appropriation is for the affordable 
61.2 	rental investment fund program under 
61.3 	Minnesota Statutes, section 462A.21, 
61.4 	subdivision 8b, to finance the acquisition, 
61.5 	rehabilitation, and debt restructuring of 
61.6 	federally assisted rental property and for 
61.7 	making equity take-out loans under Minnesota 
61.8 	Statutes, section 462A.05, subdivision 39.
61.9 	(b) The owner of federally assisted rental 
61.10 	property must agree to participate in the 
61.11 	applicable federally assisted housing program 
61.12 	and to extend any existing low-income 
61.13 	affordability restrictions on the housing for 
61.14 	the maximum term permitted. The owner must 
61.15 	also enter into an agreement that gives local 
61.16 	units of government, housing and 
61.17 	redevelopment authorities, and nonprofit 
61.18 	housing organizations the right of first refusal 
61.19 	if the rental property is offered for sale. 
61.20 	Priority must be given among comparable 
61.21 	federally assisted rental properties to 
61.22 	properties with the longest remaining term 
61.23 	under an agreement for federal assistance. 
61.24 	Priority must also be given among comparable 
61.25 	rental housing developments to developments 
61.26 	that are or will be owned by local government 
61.27 	units, a housing and redevelopment authority, 
61.28 	or a nonprofit housing organization.
61.29 	(c) The appropriation also may be used to 
61.30 	finance the acquisition, rehabilitation, and debt 
61.31 	restructuring of existing supportive housing 
61.32 	properties and naturally occurring affordable 
61.33 	housing as determined by the commissioner. 
61.34 	For purposes of this paragraph, "supportive 
61.35 	housing" means affordable rental housing with 
62.1 	links to services necessary for individuals, 
62.2 	youth, and families with children to maintain 
62.3 	housing stability.

62.4
62.5	Subd. 12.Owner-Occupied Housing 
Rehabilitation
 		2,772,000
		2,772,000
	
62.6 	(a) This appropriation is for the rehabilitation 
62.7 	of owner-occupied housing under Minnesota 
62.8 	Statutes, section 462A.05, subdivisions 14 and 
62.9 	14a.
62.10 	(b) Notwithstanding any law to the contrary, 
62.11 	grants or loans under this subdivision may be 
62.12 	made without rent or income restrictions of 
62.13 	owners or tenants. To the extent practicable, 
62.14 	grants or loans must be made available 
62.15 	statewide.

62.16	Subd. 13.Rental Housing Rehabilitation
 		3,743,000
		3,743,000
	
62.17 	(a) This appropriation is for the rehabilitation 
62.18 	of eligible rental housing under Minnesota 
62.19 	Statutes, section 462A.05, subdivision 14. In 
62.20 	administering a rehabilitation program for 
62.21 	rental housing, the agency may apply the 
62.22 	processes and priorities adopted for 
62.23 	administration of the economic development 
62.24 	and housing challenge program under 
62.25 	Minnesota Statutes, section 462A.33, and may 
62.26 	provide grants or forgivable loans if approved 
62.27 	by the agency.
62.28 	(b) Notwithstanding any law to the contrary, 
62.29 	grants or loans under this subdivision may be 
62.30 	made without rent or income restrictions of 
62.31 	owners or tenants. To the extent practicable, 
62.32 	grants or loans must be made available 
62.33 	statewide.

62.34
62.35	Subd. 14.Homeownership Education, 
Counseling, and Training
 		857,000
		857,000
	
63.1 	This appropriation is for the homeownership 
63.2 	education, counseling, and training program 
63.3 	under Minnesota Statutes, section 462A.209.

63.4	Subd. 15.Capacity-Building Grants
 		645,000
		645,000
	
63.5 	This appropriation is for nonprofit 
63.6 	capacity-building grants under Minnesota 
63.7 	Statutes, section 462A.21, subdivision 3b. Of 
63.8 	this amount, $125,000 each year is for support 
63.9 	of the Homeless Management Information 
63.10 	System (HMIS).

63.11	Subd. 16.Build Wealth MN
 		500,000
		500,000
	
63.12 	This appropriation is for a grant to Build 
63.13 	Wealth Minnesota to provide a family 
63.14 	stabilization plan program including program 
63.15 	outreach, financial literacy education, and 
63.16 	budget and debt counseling.

63.17	Subd. 17.Availability and Transfer of Funds
 					
63.18 	Money appropriated in the first year in this 
63.19 	article is available the second year. The 
63.20 	commissioner may shift or transfer money in 
63.21 	the second year in subdivisions 2, 3, 4, 5, 12, 
63.22 	and 13 to address high-priority housing needs.

63.23 	ARTICLE 6
63.24 	HOUSING POLICY

63.25 	Section 1. Minnesota Statutes 2018, section 299D.085, is amended by adding a subdivision 
63.26 	to read:
63.27 		Subd. 3a.Trailer use. A vehicle or a combination of vehicles may tow a trailer during 
63.28 	the movement of an overdimensional load if:
63.29 	(1) the party involved is a building mover licensed by the commissioner of transportation 
63.30 	under section 221.81;
63.31 	(2) the building being moved is not a temporary structure;
64.1 	(3) the overdimensional load is a manufactured home, as defined under section 327.31; 
64.2 	or
64.3 	(4) the overdimensional load is a modular home, as defined under section 297A.668, 
64.4 	subdivision 8, paragraph (b).

64.5 	Sec. 2. Minnesota Statutes 2018, section 326B.815, subdivision 1, is amended to read:
64.6 		Subdivision 1.Fees. (a) For the purposes of calculating fees under section 326B.092, 
64.7 	an initial or renewed residential contractor, residential remodeler, or residential roofer license 
64.8 	is a business license. Notwithstanding section 326B.092, the licensing fee for manufactured 
64.9 	home installers under section 327B.041 is $300 $180 for a three-year period.
64.10 	(b) All initial and renewal licenses, except for manufactured home installer licenses, 
64.11 	shall be effective for two years and shall expire on March 31 of the year after the year in 
64.12 	which the application is made.
64.13 	(c) The commissioner shall in a manner determined by the commissioner, without the 
64.14 	need for any rulemaking under chapter 14, phase in the renewal of residential contractor, 
64.15 	residential remodeler, and residential roofer licenses from one year to two years. By June 
64.16 	30, 2011, all renewed residential contractor, residential remodeler, and residential roofer 
64.17 	licenses shall be two-year licenses.

64.18 	Sec. 3. Minnesota Statutes 2018, section 327.31, is amended by adding a subdivision to 
64.19 	read:
64.20 		Subd. 23.Modular home. For the purposes of this section, "modular home" means a 
64.21 	single-family dwelling constructed in accordance with applicable standards adopted in 
64.22 	Minnesota Rules, chapter 1360 or 1361, and attached to a foundation designed to the State 
64.23 	Building Code.

64.24 	Sec. 4. [327.335] PLACEMENT OF MODULAR HOMES.
64.25 	A modular home may be placed in a manufactured home park as defined in section 
64.26 	327.14, subdivision 3. A modular home placed in a manufactured home park is a 
64.27 	manufactured home for purposes of chapters 327, 327C, and 504B, and all rights, obligations, 
64.28 	and duties under those chapters apply. A modular home may not be placed in a manufactured 
64.29 	home park without prior written approval of the park owner. Nothing in this section shall 
64.30 	be construed to inhibit the application of zoning, subdivision, architectural, or esthetic 
64.31 	requirements pursuant to chapters 394 and 462 that otherwise apply to manufactured homes 
65.1 	and manufactured home parks. A modular home placed in a manufactured home park under 
65.2 	this section shall be assessed and taxed as a manufactured home.

65.3 	Sec. 5. Minnesota Statutes 2018, section 327B.041, is amended to read:
65.4 	327B.041 MANUFACTURED HOME INSTALLERS.
65.5 	(a) Manufactured home installers are subject to all of the fees in section 326B.092 and 
65.6 	the requirements of sections 326B.802 to 326B.885, except for the following:
65.7 	(1) manufactured home installers are not subject to the continuing education requirements 
65.8 	of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education 
65.9 	requirements established in rules adopted under section 327B.10;
65.10 	(2) the examination requirement of section 326B.83, subdivision 3, for manufactured 
65.11 	home installers shall be satisfied by successful completion of a written examination 
65.12 	administered and developed specifically for the examination of manufactured home installers. 
65.13 	The examination must be administered and developed by the commissioner. The 
65.14 	commissioner and the state building official shall seek advice on the grading, monitoring, 
65.15 	and updating of examinations from the Minnesota Manufactured Housing Association;
65.16 	(3) a local government unit may not place a surcharge on a license fee, and may not 
65.17 	charge a separate fee to installers;
65.18 	(4) a dealer or distributor who does not install or repair manufactured homes is exempt 
65.19 	from licensure under sections 326B.802 to 326B.885;
65.20 	(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply; 
65.21 	and
65.22 	(6) manufactured home installers are not subject to the contractor recovery fund in 
65.23 	section 326B.89.
65.24 	(b) The commissioner may waive all or part of the requirements for licensure as a 
65.25 	manufactured home installer for any individual who holds an unexpired license or certificate 
65.26 	issued by any other state or other United States jurisdiction if the licensing requirements of 
65.27 	that jurisdiction meet or exceed the corresponding licensing requirements of the department 
65.28 	and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. For the 
65.29 	purposes of calculating fees under section 326B.092, licensure as a manufactured home 
65.30 	installer is a business license.

66.1 	Sec. 6. Minnesota Statutes 2018, section 327C.01, is amended by adding a subdivision to 
66.2 	read:
66.3 		Subd. 8a.Representative acting on behalf of residents. "Representative acting on 
66.4 	behalf of residents" means a representative who is authorized to represent residents in the 
66.5 	purchase of property for the purposes of this chapter, and has gained that authorization by 
66.6 	obtaining the signature of support from at least one resident who is a homeowner-signatory 
66.7 	to the home's lot lease agreement as defined by section 327C.01, subdivision 9, from at 
66.8 	least 51 percent of the occupied homes in a manufactured home park. The signature of a 
66.9 	resident who is a signatory to the home's lot lease agreement asserting that they are a resident 
66.10 	of that manufactured home park shall be presumptive evidence of the claim that the 
66.11 	representative is authorized to act on behalf of the resident and shall be exclusive to only 
66.12 	one representative acting on behalf of residents.

66.13 	Sec. 7. Minnesota Statutes 2018, section 327C.095, subdivision 1, is amended to read:
66.14 		Subdivision 1.Conversion of use; minimum notice. (a) At least nine 12 months before 
66.15 	the conversion of all or a portion of a manufactured home park to another use, or before 
66.16 	closure of a manufactured home park or cessation of use of the land as a manufactured home 
66.17 	park, the park owner must prepare a closure statement and provide a copy to the 
66.18 	commissioners of health and the housing finance agency, the local planning agency, and a 
66.19 	resident of each manufactured home where the residential use is being converted. The 
66.20 	closure statement must include the following language in a font no smaller than 14 point: 
66.21 	"YOU MAY BE ENTITLED TO COMPENSATION FROM THE MINNESOTA 
66.22 	MANUFACTURED HOME RELOCATION TRUST FUND ADMINISTERED BY THE 
66.23 	MINNESOTA HOUSING FINANCE AGENCY." A resident may not be required to vacate 
66.24 	until 60 90 days after the conclusion of the public hearing required under subdivision 4. If 
66.25 	a lot is available in another section of the park that will continue to be operated as a park, 
66.26 	the park owner must allow the resident to relocate the home to that lot unless the home, 
66.27 	because of its size or local ordinance, is not compatible with that lot.
66.28 	(b) Closure statements issued more than 24 months prior to the park closure must contain 
66.29 	a closure date. If the closure does not take place within 24 months and the original statement 
66.30 	does not contain a closure date, the statement must be reissued to the commissioners of 
66.31 	health and the Housing Finance Agency, the local planning agency, and a resident of each 
66.32 	manufactured home where the residential use is being converted.

67.1 	Sec. 8. Minnesota Statutes 2018, section 327C.095, subdivision 2, is amended to read:
67.2 		Subd. 2.Notice of hearing; proposed change in land use. If the planned conversion 
67.3 	or cessation of operation requires a variance or zoning change, the municipality local 
67.4 	government authority must mail a notice at least ten days before the hearing to a resident 
67.5 	of each manufactured home in the park stating the time, place, and purpose of the public 
67.6 	hearing. The park owner shall provide the municipality local government authority with a 
67.7 	list of the names and addresses of at least one resident of each manufactured home in the 
67.8 	park at the time application is made for a variance or zoning change.

67.9 	Sec. 9. Minnesota Statutes 2018, section 327C.095, subdivision 3, is amended to read:
67.10 		Subd. 3.Closure statement. Upon receipt of the closure statement from the park owner, 
67.11 	the local planning agency shall submit the closure statement to the governing body of the 
67.12 	municipality local government authority and request the governing body to schedule a public 
67.13 	hearing. The municipality local government authority must mail a notice at least ten days 
67.14 	before the hearing to a resident of each manufactured home in the park stating the time, 
67.15 	place, and purpose of the public hearing. The park owner shall provide the municipality
67.16 	local government authority with a list of the names and addresses of at least one resident 
67.17 	of each manufactured home in the park at the time the closure statement is submitted to the 
67.18 	local planning agency.

67.19 	Sec. 10. Minnesota Statutes 2018, section 327C.095, subdivision 4, is amended to read:
67.20 		Subd. 4.Public hearing; relocation compensation; neutral third party. (a) Within 
67.21 	90 days after receiving notice of a closure statement, the governing body of the affected 
67.22 	municipality local government authority shall hold a public hearing to review the closure 
67.23 	statement and any impact that the park closing may have on the displaced residents and the 
67.24 	park owner. At the time of, and in the notice for, the public hearing, displaced residents 
67.25 	must be informed that they may be eligible for payments from the Minnesota manufactured 
67.26 	home relocation trust fund under section 462A.35 as compensation for reasonable relocation 
67.27 	costs under subdivision 13, paragraphs (a) and (e).
67.28 	(b) The governing body of the municipality local government authority may also require 
67.29 	that other parties, including the municipality local government authority, but excluding the 
67.30 	park owner or its purchaser, involved in the park closing provide additional compensation 
67.31 	to residents to mitigate the adverse financial impact of the park closing upon the residents.
67.32 	(c) At the public hearing, the municipality local government authority shall appoint a 
67.33 	qualified neutral third party, to be agreed upon by both the manufactured home park owner 
68.1 	and manufactured home owners, whose hourly cost must be reasonable and paid from the 
68.2 	Minnesota manufactured home relocation trust fund. The neutral third party shall act as a 
68.3 	paymaster and arbitrator, with decision-making authority to resolve any questions or disputes 
68.4 	regarding any contributions or disbursements to and from the Minnesota manufactured 
68.5 	home relocation trust fund by either the manufactured home park owner or the manufactured 
68.6 	home owners. If the parties cannot agree on a neutral third party, the municipality will make 
68.7 	a determination local government authority shall determine who shall act as the neutral third 
68.8 	party.
68.9 	(d) The qualified neutral third party shall be familiar with manufactured housing and 
68.10 	the requirements of this section. The neutral third party shall keep an overall receipts and 
68.11 	cost summary together with a detailed accounting, for each manufactured lot, of the payments 
68.12 	received by the manufactured home park owner, and expenses approved and payments 
68.13 	disbursed to the manufactured home owners, pursuant to subdivisions 12 and 13, as well 
68.14 	as a record of all services and hours it provided and at what hourly rate it charged to the 
68.15 	Minnesota manufactured home trust fund. This detailed accounting shall be provided to the 
68.16 	manufactured home park owner, the municipality, and the Minnesota Housing Finance 
68.17 	Agency to be included in its yearly October 15 report as required in subdivision 13, paragraph 
68.18 	(h), not later than 30 days after the expiration of the 12-month notice provided in the closure 
68.19 	statement.
68.20 	(e) At the public hearing, the governing body of the local government authority shall 
68.21 	determine if any ordinance was in effect on May 26, 2007, that would provide compensation 
68.22 	to displaced residents and provide this information to the third party neutral to determine 
68.23 	the applicable amount of compensation under subdivision 13, paragraph (f).

68.24 	Sec. 11. Minnesota Statutes 2018, section 327C.095, subdivision 6, is amended to read:
68.25 		Subd. 6.Intent to convert use of park at time of purchase. (a) Before the execution 
68.26 	of an agreement to purchase a manufactured home park, the purchaser must notify the park 
68.27 	owner, in writing, if the purchaser intends to close the manufactured home park or convert 
68.28 	it to another use within one year of the execution of the agreement. If so, the park owner 
68.29 	shall provide a resident of each manufactured home with a 45-day written notice of the 
68.30 	purchaser's intent to close the park or convert it to another use and may not enter into a 
68.31 	purchase agreement for the sale of the park other than with a representative acting on behalf 
68.32 	of residents, until the 45 days have expired. The notice must state that the park owner will
68.33 	promptly provide information on the cash price and the terms and conditions of the 
68.34 	purchaser's offer to residents requesting the information. The notice must be sent by first 
69.1 	class mail to a resident of each manufactured home in the park and made available in 
69.2 	alternative formats or translations if requested by a resident and the request is a reasonable 
69.3 	accommodation due to a disability of an adult resident or because there is not an adult 
69.4 	resident who is able to speak the language the notice is provided in. The notice period begins 
69.5 	on the postmark date affixed to the notice and ends 45 days after it begins. During the notice 
69.6 	period required in this subdivision, the owners of at least 51 percent of the manufactured 
69.7 	homes in the park or a nonprofit organization which has the written permission of the owners 
69.8 	of at least 51 percent of the manufactured homes in the park to represent them in the 
69.9 	acquisition of the park a representative acting on behalf of residents shall have the right to
69.10 	make an offer to meet the cash price and execute an agreement to purchase the park for the 
69.11 	purposes of keeping the park as a manufactured housing community to agree to material 
69.12 	terms and conditions set forth in the purchaser's offer and to execute an agreement to purchase 
69.13 	the park for the purposes of keeping the park as a manufactured housing community. The 
69.14 	park owner must accept the offer if it meets in good faith negotiate a purchase agreement 
69.15 	meeting the cash price and the same terms and conditions set forth in the purchaser's offer 
69.16 	except that the seller is not obligated to provide owner financing. For purposes of this 
69.17 	section, cash price means the cash price offer or equivalent cash offer as defined in section 
69.18 	500.245, subdivision 1, paragraph (d). The purchase agreement must permit the representative 
69.19 	a commercially reasonable due diligence period with access by the representative to all 
69.20 	information reasonably necessary to make an informed decision regarding the purchase. 
69.21 	The representative may be required to enter into a confidentiality agreement regarding the 
69.22 	information.
69.23 	(b) A representative acting on behalf of residents must provide ten percent of the offer 
69.24 	price as earnest money upon gaining the required number of signatures to represent the 
69.25 	residents in the purchase of a manufactured home park. The earnest money is refundable 
69.26 	after six months; however, the earnest money may become nonrefundable if the representative 
69.27 	acting on behalf of residents is unable to complete the purchase, and the original purchaser 
69.28 	withdraws the offer during the 45-day period in paragraph (a), and the manufactured home 
69.29 	park is sold to another purchaser for a lower price within six months of the notice to residents 
69.30 	in paragraph (a), then the park owner will be compensated from the earnest money for the 
69.31 	difference between the offer made by the original purchaser and the actual lower purchase 
69.32 	price.
69.33 	(c) In the event of a sale to a representative acting on behalf of residents, the 
69.34 	representative must certify to the commissioner of commerce that the property will be 
69.35 	preserved as a manufactured home park for ten years from the date of the sale.

70.1 	Sec. 12. Minnesota Statutes 2018, section 327C.095, subdivision 7, is amended to read:
70.2 		Subd. 7.Intent to convert Conversion of use of park after purchase. If the purchaser
70.3 	residents of a manufactured home park decides to convert the park to another use within 
70.4 	one year after the purchase of the park, the purchaser must offer the park for purchase by 
70.5 	the residents of the park have not been provided the written notice of intent to close the park 
70.6 	required by subdivision 6, the purchaser may not provide residents with the notice required 
70.7 	by subdivision 1 until 12 months after the date of purchase. For purposes of this subdivision, 
70.8 	the date of purchase is the date of the transfer of the title to the purchaser. The purchaser 
70.9 	must provide a resident of each manufactured home with a written notice of the intent to 
70.10 	close the park and all of the owners of at least 51 percent of the manufactured homes in the 
70.11 	park or a nonprofit organization which has the written permission of the owners of at least 
70.12 	51 percent of the manufactured homes in the park to represent them in the acquisition of 
70.13 	the park shall have 45 days to execute an agreement for the purchase of the park at a cash 
70.14 	price equal to the original purchase price paid by the purchaser plus any documented expenses 
70.15 	relating to the acquisition and improvement of the park property, together with any increase 
70.16 	in value due to appreciation of the park. The purchaser must execute the purchase agreement 
70.17 	at the price specified in this subdivision and pay the cash price within 90 days of the date 
70.18 	of the purchase agreement. The notice must be sent by first class mail to a resident of each 
70.19 	manufactured home in the park. The notice period begins on the postmark date affixed to 
70.20 	the notice and ends 45 days after it begins.

70.21 	Sec. 13. Minnesota Statutes 2018, section 327C.095, subdivision 9, is amended to read:
70.22 		Subd. 9.Effect of noncompliance. If a manufactured home park is finally sold or 
70.23 	converted to another use in violation of subdivision 6 or 7, the residents do not have any 
70.24 	continuing right to purchase the park as a result of that sale or conversion. A violation of 
70.25 	subdivision 6 or 7 is subject to have a right to any remedy provided in section 8.31, except
70.26 	that relief shall be limited so that questions of marketability of title shall not be affected.

70.27 	Sec. 14. Minnesota Statutes 2018, section 327C.095, subdivision 11, is amended to read:
70.28 		Subd. 11.Affidavit of compliance. After a park is sold, a park owner or other person 
70.29 	with personal knowledge bona fide purchaser acting in good faith may record an affidavit 
70.30 	with the county recorder or registrar of titles in the county in which the park is located 
70.31 	certifying compliance with subdivision 6 or 7 or that subdivisions subdivision 6 and 7 are
70.32 	is not applicable. The affidavit may be used as proof of the facts stated in the affidavit. A 
70.33 	person acquiring an interest in a park or a title insurer or attorney who prepares, furnishes, 
71.1 	or examines evidence of title may rely on the truth and accuracy of statements made in the 
71.2 	affidavit and is not required to inquire further as to the park owner's compliance with 
71.3 	subdivisions 6 and 7. When an affidavit is recorded, the right to purchase provided under 
71.4 	subdivisions 6 and 7 terminate, and if registered property, the registrar of titles shall delete 
71.5 	the memorials of the notice and affidavit from future certificates of title presumptive evidence 
71.6 	of compliance.

71.7 	Sec. 15. Minnesota Statutes 2018, section 327C.095, subdivision 12, is amended to read:
71.8 		Subd. 12.Payment to the Minnesota manufactured home relocation trust fund. (a) 
71.9 	If a manufactured home owner is required to move due to the conversion of all or a portion 
71.10 	of a manufactured home park to another use, the closure of a park, or cessation of use of 
71.11 	the land as a manufactured home park, the manufactured park owner shall, upon the change 
71.12 	in use, pay to the commissioner of management and budget for deposit in the Minnesota 
71.13 	manufactured home relocation trust fund under section 462A.35, the lesser amount of the 
71.14 	actual costs of moving or purchasing the manufactured home approved by the neutral third 
71.15 	party and paid by the Minnesota Housing Finance Agency under subdivision 13, paragraph 
71.16 	(a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each 
71.17 	multisection manufactured home, for which a manufactured home owner has made 
71.18 	application for payment of relocation costs under subdivision 13, paragraph (c). The 
71.19 	manufactured home park owner shall make payments required under this section to the 
71.20 	Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice 
71.21 	from the neutral third party.
71.22 	(b) A manufactured home park owner is not required to make the payment prescribed 
71.23 	under paragraph (a), nor is a manufactured home owner entitled to compensation under 
71.24 	subdivision 13, paragraph (a) or (e), if:
71.25 	(1) the manufactured home park owner relocates the manufactured home owner to 
71.26 	another space in the manufactured home park or to another manufactured home park at the 
71.27 	park owner's expense;
71.28 	(2) the manufactured home owner is vacating the premises and has informed the 
71.29 	manufactured home park owner or manager of this prior to the mailing date of the closure 
71.30 	statement under subdivision 1;
71.31 	(3) a manufactured home owner has abandoned the manufactured home, or the 
71.32 	manufactured home owner is not current on the monthly lot rental, personal property taxes;
72.1 	(4) the manufactured home owner has a pending eviction action for nonpayment of lot 
72.2 	rental amount under section 327C.09, which was filed against the manufactured home owner 
72.3 	prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery 
72.4 	has been ordered by the district court;
72.5 	(5) the conversion of all or a portion of a manufactured home park to another use, the 
72.6 	closure of a park, or cessation of use of the land as a manufactured home park is the result 
72.7 	of a taking or exercise of the power of eminent domain by a governmental entity or public 
72.8 	utility; or
72.9 	(6) the owner of the manufactured home is not a resident of the manufactured home 
72.10 	park, as defined in section 327C.01, subdivision 9, or; the owner of the manufactured home 
72.11 	is a resident, but came to reside in the manufactured home park after the mailing date of 
72.12 	the closure statement under subdivision 1; or the owner of the manufactured home has not 
72.13 	paid the $15 assessment when due under paragraph (c).
72.14 	(c) If the unencumbered fund balance in the manufactured home relocation trust fund 
72.15 	is less than $1,000,000 $2,000,000 as of June 30 of each year, the commissioner of 
72.16 	management and budget shall assess each manufactured home park owner by mail the total 
72.17 	amount of $15 for each licensed lot in their park, payable on or before September December
72.18 	15 of that year. The commissioner of management Failure to notify and budget shall deposit 
72.19 	any payments in the Minnesota timely assess the manufactured home relocation trust fund. 
72.20 	On or before July 15 of park owner by July 31 of any year shall waive the assessment and 
72.21 	payment obligations of the manufactured home park owner for that year. Together with said 
72.22 	assessment notice, each year, the commissioner of management and budget shall prepare 
72.23 	and distribute to park owners a letter explaining whether funds are being collected for that 
72.24 	year, information about the collection, an invoice for all licensed lots, a notice for distribution 
72.25 	to the residents, and a sample form for the park owners to collect information on which park 
72.26 	residents and lots have been accounted for. In a font no smaller than 14-point, the notice 
72.27 	provided by management and budget for distribution to residents by the park owner will 
72.28 	include the payment deadline of November 30 and the following language: "THIS IS NOT 
72.29 	AN OPTIONAL FEE. IF YOU OWN A MANUFACTURED HOME ON A LOT YOU 
72.30 	RENT IN A MANUFACTURED HOME PARK, AND YOU RESIDE IN THAT HOME, 
72.31 	YOU MUST PAY WHEN PROVIDED NOTICE." If assessed under this paragraph, the 
72.32 	park owner may recoup the cost of the $15 assessment as a lump sum or as a monthly fee 
72.33 	of no more than $1.25 collected from park residents together with monthly lot rent as 
72.34 	provided in section 327C.03, subdivision 6. Park owners If, by September 15, a park owner 
72.35 	provides the notice to residents for the $15 lump sum, a park owner may adjust payment 
73.1 	for lots in their park that are vacant or otherwise not eligible for contribution to the trust 
73.2 	fund under section 327C.095, subdivision 12, paragraph (b), and for park residents who 
73.3 	have not paid the $15 assessment when due to the park owner by November 30, and deduct 
73.4 	from the assessment accordingly. The commissioner of management and budget shall deposit 
73.5 	any payments in the Minnesota manufactured home relocation trust fund and provide to the 
73.6 	Minnesota Housing Finance Agency by December 31, a record for each manufactured home 
73.7 	park of the amount received for that park and the number of deductions made for each of 
73.8 	the following reasons: vacant lots, ineligible lots, and uncollected fees.
73.9 	(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by 
73.10 	the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action 
73.11 	in a court of appropriate jurisdiction. The court may award a prevailing party reasonable 
73.12 	attorney fees, court costs, and disbursements.

73.13 	Sec. 16. Minnesota Statutes 2018, section 327C.095, subdivision 13, is amended to read:
73.14 		Subd. 13.Change in use, relocation expenses; payments by park owner. (a) If a 
73.15 	manufactured home owner is required to relocate due to the conversion of all or a portion 
73.16 	of a manufactured home park to another use, the closure of a manufactured home park, or 
73.17 	cessation of use of the land as a manufactured home park under subdivision 1, and the 
73.18 	manufactured home owner complies with the requirements of this section, the manufactured 
73.19 	home owner is entitled to payment from the Minnesota manufactured home relocation trust 
73.20 	fund equal to the manufactured home owner's actual relocation costs for relocating the 
73.21 	manufactured home to a new location within a 2550-mile radius of the park that is being 
73.22 	closed, up to a maximum of $7,000 for a single-section and $12,500 for a multisection 
73.23 	manufactured home. The actual relocation costs must include the reasonable cost of taking 
73.24 	down, moving, and setting up the manufactured home, including equipment rental, utility 
73.25 	connection and disconnection charges, minor repairs, modifications necessary for 
73.26 	transportation of the home, necessary moving permits and insurance, moving costs for any 
73.27 	appurtenances, which meet applicable local, state, and federal building and construction 
73.28 	codes.
73.29 	(b) A manufactured home owner is not entitled to compensation under paragraph (a) if 
73.30 	the manufactured home park owner is not required to make a payment to the Minnesota 
73.31 	manufactured home relocation trust fund under subdivision 12, paragraph (b).
73.32 	(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota 
73.33 	manufactured home relocation trust fund, the manufactured home owner shall submit to the 
74.1 	neutral third party and the Minnesota Housing Finance Agency, with a copy to the park 
74.2 	owner, an application for payment, which includes:
74.3 	(1) a copy of the closure statement under subdivision 1;
74.4 	(2) a copy of the contract with a moving or towing contractor, which includes the 
74.5 	relocation costs for relocating the manufactured home;
74.6 	(3) a statement with supporting materials of any additional relocation costs as outlined 
74.7 	in subdivision 1;
74.8 	(4) a statement certifying that none of the exceptions to receipt of compensation under 
74.9 	subdivision 12, paragraph (b), apply to the manufactured home owner;
74.10 	(5) a statement from the manufactured park owner that the lot rental is current and that 
74.11 	the annual $15 payments payment to the Minnesota manufactured home relocation trust 
74.12 	fund have has been paid when due; and
74.13 	(6) a statement from the county where the manufactured home is located certifying that 
74.14 	personal property taxes for the manufactured home are paid through the end of that year.
74.15 	(d) The neutral third party shall promptly process all payments for completed applications 
74.16 	within 14 days. If the neutral third party has acted reasonably and does not approve or deny 
74.17 	payment within 45 days after receipt of the information set forth in paragraph (c), the 
74.18 	payment is deemed approved. Upon approval and request by the neutral third party, the 
74.19 	Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 percent 
74.20 	of the contract price payable to the mover and towing contractor for relocating the 
74.21 	manufactured home in the amount of the actual relocation cost, plus a check to the home 
74.22 	owner for additional certified costs associated with third-party vendors, that were necessary 
74.23 	in relocating the manufactured home. The moving or towing contractor shall receive 50 
74.24 	percent upon execution of the contract and 50 percent upon completion of the relocation 
74.25 	and approval by the manufactured home owner. The moving or towing contractor may not 
74.26 	apply the funds to any other purpose other than relocation of the manufactured home as 
74.27 	provided in the contract. A copy of the approval must be forwarded by the neutral third 
74.28 	party to the park owner with an invoice for payment of the amount specified in subdivision 
74.29 	12, paragraph (a).
74.30 	(e) In lieu of collecting a relocation payment from the Minnesota manufactured home 
74.31 	relocation trust fund under paragraph (a), the manufactured home owner may collect an 
74.32 	amount from the fund after reasonable efforts to relocate the manufactured home have failed 
74.33 	due to the age or condition of the manufactured home, or because there are no manufactured 
75.1 	home parks willing or able to accept the manufactured home within a 25-mile radius. A 
75.2 	manufactured home owner may tender title of the manufactured home in the manufactured 
75.3 	home park to the manufactured home park owner, and collect an amount to be determined 
75.4 	by an independent appraisal. The appraiser must be agreed to by both the manufactured 
75.5 	home park owner and the manufactured home owner. If the appraised market value cannot 
75.6 	be determined, the tax market value, averaged over a period of five years, can be used as a 
75.7 	substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a 
75.8 	single-section and $14,500 for a multisection manufactured home. The minimum amount 
75.9 	that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a 
75.10 	multisection manufactured home. The manufactured home owner shall deliver to the 
75.11 	manufactured home park owner the current certificate of title to the manufactured home 
75.12 	duly endorsed by the owner of record, and valid releases of all liens shown on the certificate 
75.13 	of title, and a statement from the county where the manufactured home is located evidencing 
75.14 	that the personal property taxes have been paid. The manufactured home owner's application 
75.15 	for funds under this paragraph must include a document certifying that the manufactured 
75.16 	home cannot be relocated, that the lot rental is current, that the annual $15 payments to the 
75.17 	Minnesota manufactured home relocation trust fund have been paid when due, that the 
75.18 	manufactured home owner has chosen to tender title under this section, and that the park 
75.19 	owner agrees to make a payment to the commissioner of management and budget in the 
75.20 	amount established in subdivision 12, paragraph (a), less any documented costs submitted 
75.21 	to the neutral third party, required for demolition and removal of the home, and any debris 
75.22 	or refuse left on the lot, not to exceed $1,000 $1,500. The manufactured home owner must 
75.23 	also provide a copy of the certificate of title endorsed by the owner of record, and certify 
75.24 	to the neutral third party, with a copy to the park owner, that none of the exceptions to 
75.25 	receipt of compensation under subdivision 12, paragraph (b), clauses (1) to (6), apply to the 
75.26 	manufactured home owner, and that the home owner will vacate the home within 60 days 
75.27 	after receipt of payment or the date of park closure, whichever is earlier, provided that the 
75.28 	monthly lot rent is kept current.
75.29 	(f) The Minnesota Housing Finance Agency must make a determination of the amount 
75.30 	of payment a manufactured home owner would have been entitled to under a local ordinance 
75.31 	in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured home owner's 
75.32 	compensation for relocation costs from the fund under section 462A.35, is the greater of 
75.33 	the amount provided under this subdivision, or the amount under the local ordinance in 
75.34 	effect on May 26, 2007, that is applicable to the manufactured home owner. Nothing in this 
75.35 	paragraph is intended to increase the liability of the park owner.
76.1 	(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be 
76.2 	liable to any person for recovery if the funds in the Minnesota manufactured home relocation 
76.3 	trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance 
76.4 	Agency shall keep a record of the time and date of its approval of payment to a claimant.
76.5 	(h)(1) By October 15, 2019, the Minnesota Housing Finance Agency shall post on its 
76.6 	website and report to the chairs of the senate Finance Committee and house of representatives 
76.7 	Ways and Means Committee on the Minnesota manufactured home relocation trust fund, 
76.8 	including the account balance, payments to claimants, the amount of any advances to the 
76.9 	fund, the amount of any insufficiencies encountered during the previous calendar year, and 
76.10 	any itemized administrative charges or expenses deducted from the trust fund balance. If 
76.11 	sufficient funds become available, the Minnesota Housing Finance Agency shall pay the 
76.12 	manufactured home owner whose unpaid claim is the earliest by time and date of approval.
76.13 	(h) (2) Beginning in 2019, the Minnesota Housing Finance Agency shall post on its 
76.14 	website and report to the chairs of the senate Finance Committee and house of representatives 
76.15 	Ways and Means Committee by January October 15 of each year on the Minnesota 
76.16 	manufactured home relocation trust fund, including the aggregate account balance, the 
76.17 	aggregate assessment payments received, summary information regarding each closed park 
76.18 	including the total payments to claimants and payments received from each closed park, 
76.19 	the amount of any advances to the fund, the amount of any insufficiencies encountered 
76.20 	during the previous calendar fiscal year, reports of neutral third parties provided pursuant 
76.21 	to subdivision 4, and any itemized administrative charges or expenses deducted from the 
76.22 	trust fund balance, all of which should be reconciled to the previous year's trust fund balance. 
76.23 	If sufficient funds become available, the Minnesota Housing Finance Agency shall pay the 
76.24 	manufactured home owner whose unpaid claim is the earliest by time and date of approval.

76.25 	Sec. 17. Minnesota Statutes 2018, section 327C.095, is amended by adding a subdivision 
76.26 	to read:
76.27 		Subd. 16.Reporting of licensed manufactured home parks. The Department of Health 
76.28 	or, if applicable, local units of government that have entered into a delegation of authority 
76.29 	agreement with the Department of Health as provided in section 145A.07 shall provide, by 
76.30 	March 31 of each year, a list of names and addresses of the manufactured home parks 
76.31 	licensed in the previous year, and for each manufactured home park, the current licensed 
76.32 	owner, the owner's address, the number of licensed manufactured home lots, and other data 
76.33 	as they may request for the Department of Management and Budget to invoice each licensed 
76.34 	manufactured home park in Minnesota.

77.1 	Sec. 18. Minnesota Statutes 2018, section 428A.11, subdivision 4, is amended to read:
77.2 		Subd. 4.Housing improvements. "Housing improvements" has the meaning given in 
77.3 	the city's enabling ordinance. Housing improvements may include improvements to common 
77.4 	elements of a condominium or other common interest community or to a manufactured 
77.5 	home park.

77.6 	Sec. 19. Minnesota Statutes 2018, section 428A.11, subdivision 6, is amended to read:
77.7 		Subd. 6.Housing unit. "Housing unit" means real property and improvements thereon 
77.8 	consisting of a one-dwelling unit, or an apartment or unit as described in chapter 515, 515A, 
77.9 	or 515B, respectively, or a manufactured home in a manufactured home park that is occupied 
77.10 	by a person or family for use as a residence.

77.11 	Sec. 20. Minnesota Statutes 2018, section 462A.2035, subdivision 1a, is amended to read:
77.12 		Subd. 1a.Individual assistance grants. Eligible recipients may use individual assistance 
77.13 	grants and loans under this program to:
77.14 	(1) provide current residents of manufactured home parks with buy-out assistance not 
77.15 	to exceed $4,000 per home with preference given to older manufactured homes; and
77.16 	(2) provide down-payment assistance for the purchase of new and preowned manufactured 
77.17 	homes that comply with the current version of the State Building United States Department 
77.18 	of Housing and Urban Development's Manufactured Housing Code in effect at the time of 
77.19 	the sale, not to exceed $10,000 per home.

77.20 	Sec. 21. Minnesota Statutes 2018, section 462A.2035, subdivision 1b, is amended to read:
77.21 		Subd. 1b.Manufactured home park infrastructure grants. Eligible recipients may 
77.22 	use manufactured home park infrastructure grants under this program for:
77.23 	(1) acquisition of and improvements in manufactured home parks; and
77.24 	(2) infrastructure, including storm shelters and community facilities.

77.25 	Sec. 22. Minnesota Statutes 2018, section 462A.209, subdivision 8, is amended to read:
77.26 		Subd. 8.Report. (a) By January 10 of every year, each nonprofit organization or political 
77.27 	subdivision that delivers services under this section and capacity building under section 
77.28 	462A.21, subdivision 3b, if the grant recipient has subgrantees, must submit a report to the 
77.29 	agency that summarizes the number of people served and the sources and amounts of nonstate 
78.1 	money used to fund the services. The report must include, at a minimum, the following 
78.2 	information:
78.3 	(1) details of program costs;
78.4 	(2) the number of staff, both within the organization and any outside organization;
78.5 	(3) the number of program participants;
78.6 	(4) the demographic information including, but not limited to, race, age, gender, and 
78.7 	income of program participants, if available;
78.8 	(5) a list of any and all subgrantees receiving funds from the program, as well as the 
78.9 	amount of funding received;
78.10 	(6) information about other sources of program funding including other public or private 
78.11 	funding or in-kind donations;
78.12 	(7) evidence that the organization administering a program or a subgrantee of a program 
78.13 	is in good standing with the Minnesota Secretary of State and has provided an affidavit 
78.14 	stating the organization and subgrantee, if any, has met all applicable requirements under 
78.15 	chapter 289A;
78.16 	(8) a short description of what each program does; and
78.17 	(9) to the extent practicable, quantifiable measures of program success.
78.18 	(b) The agency shall annually submit a report containing the information received from 
78.19 	nonprofit organizations and political subdivisions under paragraph (a) to the legislature
78.20 	members of the legislative housing policy and finance committees and divisions by February 
78.21 	15.

78.22 	EFFECTIVE DATE. This section is effective July 1, 2020.

78.23 	Sec. 23. Minnesota Statutes 2018, section 462A.22, subdivision 9, is amended to read:
78.24 		Subd. 9.Biennial report. The agency shall also submit a biennial report of its activities 
78.25 	and receipts, and a plan for the next biennium, to the governor and the legislature on or 
78.26 	before February 15 in each odd-numbered year. The report shall include: (1) the distribution 
78.27 	of money under each agency program by county, except for counties containing a city of 
78.28 	the first class, where the distribution shall be reported by municipality; and (2) the cost per 
78.29 	unit of housing and the cost per square foot of housing financed under each agency program.
79.1 	In addition, the report shall include the cost to the agency of the issuance of its bonds 
79.2 	for each issue in the biennium, along with comparable information for other state housing 
79.3 	finance agencies.

79.4 	Sec. 24. Minnesota Statutes 2018, section 462A.222, subdivision 3, is amended to read:
79.5 		Subd. 3.Allocation procedure. (a) Projects will be awarded tax credits in two 
79.6 	competitive rounds on an annual basis. The date for applications for each round must be 
79.7 	determined by the agency. No allocating agency may award tax credits prior to the application 
79.8 	dates established by the agency.
79.9 	(b) Each allocating agency must meet the requirements of section 42(m) of the Internal 
79.10 	Revenue Code of 1986, as amended through December 31, 1989, for the allocation of tax 
79.11 	credits and the selection of projects.
79.12 	(c) For projects that are eligible for an allocation of credits pursuant to section 42(h)(4) 
79.13 	of the Internal Revenue Code of 1986, as amended, tax credits may only be allocated if the 
79.14 	project satisfies the requirements of the allocating agency's qualified allocation plan. For 
79.15 	projects that are eligible for an allocation of credits pursuant to section 42(h)(4) of the 
79.16 	Internal Revenue Code of 1986, as amended, for which the agency is the issuer of the bonds 
79.17 	for the project, or the issuer of the bonds for the project is located outside the jurisdiction 
79.18 	of a city or county that has received reserved tax credits, the applicable allocation plan is 
79.19 	the agency's qualified allocation plan.
79.20 	(d)(1) To maximize the resources available for and increase the supply of affordable 
79.21 	housing in Minnesota by leveraging the benefits to Minnesota from the use of tax-exempt 
79.22 	bonds to finance multifamily housing and to allow local units of government more flexibility 
79.23 	to address specific affordable housing needs in their communities, the agency shall make 
79.24 	residential rental housing projects financed with an allocation of tax-exempt bonds under 
79.25 	chapter 474A the highest strategic priority for tax credits under the agency's qualified 
79.26 	allocation plan under section 42(m)(1)(D) of the Internal Revenue Code of 1986, as amended.
79.27 	(2) For projects eligible for an allocation of tax credits under section 42(h)(4) of the 
79.28 	Internal Revenue Code of 1986, as amended, the agency's qualified allocation plan and 
79.29 	other related agency guidance and requirements:
79.30 	(i) shall not include any selection criteria other than (A) the criteria of section 42(m)(1)(C) 
79.31 	of the Internal Revenue Code of 1986, as amended, and (B) whether the project has received 
79.32 	an allocation of tax-exempt bonds under chapter 474A, with subitem (B) as the most 
79.33 	important criteria;
80.1 	(ii) shall grant projects receiving an allocation of tax-exempt bonds under chapter 474A
80.2 	the highest possible preference and, to the extent applicable, ahead of any preference 
80.3 	described in section 42(m)(1)(B) of the Internal Revenue Code of 1986, as amended;
80.4 	(iii) shall exclude any per-unit cost limitations, cost reasonableness, or other similar 
80.5 	restrictions for residential rental housing projects financed with an allocation of tax-exempt 
80.6 	bonds under chapter 474A; and
80.7 	(iv) shall not adopt or impose any additional rules, requirements, regulations, or 
80.8 	restrictions other than those required by section 42 of the Internal Revenue Code of 1986, 
80.9 	as amended, regarding the allocation of credits.
80.10 	Each developer of a residential rental housing project that has received an allocation of 
80.11 	tax-exempt bonds under chapter 474A and the proposed issuer of such tax-exempt bonds 
80.12 	shall have standing to challenge the agency's qualified allocation plan for failure to comply 
80.13 	with this clause.
80.14 	In the event of any conflict or inconsistency between this paragraph and section 462A.04, 
80.15 	the provisions of this paragraph shall govern and control. The provisions of paragraph (d) 
80.16 	shall not apply to any allocating agency other than the agency.
80.17 	(e) For applications submitted for the first round, an allocating agency may allocate tax 
80.18 	credits only to the following types of projects:
80.19 	(1) in the metropolitan area:
80.20 	(i) new construction or substantial rehabilitation of projects in which, for the term of the 
80.21 	extended use period, at least 75 percent of the total tax credit units are single-room 
80.22 	occupancy, efficiency, or one bedroom units and which are affordable by households whose 
80.23 	income does not exceed 30 percent of the median income;
80.24 	(ii) new construction or substantial rehabilitation family housing projects that are not 
80.25 	restricted to persons who are 55 years of age or older and in which, for the term of the 
80.26 	extended use period, at least 75 percent of the tax credit units contain two or more bedrooms 
80.27 	and at least one-third of the 75 percent contain three or more bedrooms; or
80.28 	(iii) substantial rehabilitation projects in neighborhoods targeted by the city for 
80.29 	revitalization;
80.30 	(2) outside the metropolitan area, projects which meet a locally identified housing need 
80.31 	and which are in short supply in the local housing market as evidenced by credible data 
80.32 	submitted with the application;
81.1 	(3) projects that are not restricted to persons of a particular age group and in which, for 
81.2 	the term of the extended use period, a percentage of the units are set aside and rented to 
81.3 	persons:
81.4 	(i) with a serious and persistent mental illness as defined in section 245.462, subdivision 
81.5 	20, paragraph (c);
81.6 	(ii) with a developmental disability as defined in United States Code, title 42, section 
81.7 	6001, paragraph (5), as amended through December 31, 1990;
81.8 	(iii) who have been assessed as drug dependent persons as defined in section 254A.02, 
81.9 	subdivision 5, and are receiving or will receive care and treatment services provided by an 
81.10 	approved treatment program as defined in section 254A.02, subdivision 2;
81.11 	(iv) with a brain injury as defined in section 256B.093, subdivision 4, paragraph (a); or
81.12 	(v) with permanent physical disabilities that substantially limit one or more major life 
81.13 	activities, if at least 50 percent of the units in the project are accessible as provided under 
81.14 	Minnesota Rules, chapter 1340;
81.15 	(4) projects, whether or not restricted to persons of a particular age group, which preserve 
81.16 	existing subsidized housing, if the use of tax credits is necessary to prevent conversion to 
81.17 	market rate use or to remedy physical deterioration of the project which would result in loss 
81.18 	of existing federal subsidies; or
81.19 	(5) projects financed by the Farmers Home Administration, or its successor agency, 
81.20 	which meet statewide distribution goals.
81.21 	(f) Before the date for applications for the final round, the allocating agencies other than 
81.22 	the agency shall return all uncommitted and unallocated tax credits to a unified pool for 
81.23 	allocation by the agency on a statewide basis.
81.24 	(g) Unused portions of the state ceiling for low-income housing tax credits reserved to 
81.25 	cities and counties for allocation may be returned at any time to the agency for allocation.
81.26 	(h) If an allocating agency determines, at any time after the initial commitment or 
81.27 	allocation for a specific project, that a project is no longer eligible for all or a portion of the 
81.28 	low-income housing tax credits committed or allocated to the project, the credits must be 
81.29 	transferred to the agency to be reallocated pursuant to the procedures established in 
81.30 	paragraphs (f) to (h); provided that if the tax credits for which the project is no longer eligible 
81.31 	are from the current year's annual ceiling and the allocating agency maintains a waiting list, 
81.32 	the allocating agency may continue to commit or allocate the credits until not later than the 
82.1 	date of applications for the final round, at which time any uncommitted credits must be 
82.2 	transferred to the agency.

82.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

82.4 	Sec. 25. Minnesota Statutes 2018, section 462A.24, is amended to read:
82.5 	462A.24 CONSTRUCTION; GRANTS AND LOANS; PRIORITIES.
82.6 	(a) This chapter is necessary for the welfare of the state of Minnesota and its inhabitants; 
82.7 	therefore, it shall be liberally construed to effect its purpose.
82.8 	(b) To the extent practicable, the agency shall award grant and loan amounts with a 
82.9 	reasonable balance between nonmetropolitan and metropolitan areas of the state.
82.10 	(c) Beginning with applications made in response to requests for proposals issued after 
82.11 	July 1, 2020, after final decisions are made on applications for programs of the agency, the 
82.12 	results of any quantitative scoring system used to rank applications shall be posted on the 
82.13 	agency website.

82.14 	Sec. 26. Minnesota Statutes 2018, section 462A.33, subdivision 1, is amended to read:
82.15 		Subdivision 1.Created. (a) The economic development and housing challenge program 
82.16 	is created to be administered by the agency. Notwithstanding section 462A.24, this section 
82.17 	shall be construed based on the specific language within this section and within an 
82.18 	appropriation pursuant to this section.
82.19 	(a) (b) The program shall provide grants or loans for the purpose of construction, 
82.20 	acquisition, rehabilitation, demolition or removal of existing structures, construction 
82.21 	financing, permanent financing, interest rate reduction, refinancing, and gap financing of 
82.22 	housing to support economic development and redevelopment activities or job creation or 
82.23 	job preservation within a community or region by meeting locally identified housing needs.
82.24 	Gap financing is either:
82.25 	(1) the difference between the costs of the property, including acquisition, demolition, 
82.26 	rehabilitation, and construction, and the market value of the property upon sale; or
82.27 	(2) the difference between the cost of the property and the amount the targeted household 
82.28 	can afford for housing, based on industry standards and practices.
82.29 	(b) (c) Preference for grants and loans shall be given to comparable proposals that include 
82.30 	regulatory changes or waivers that result in identifiable cost avoidance or cost reductions, 
82.31 	such as increased density, flexibility in site development standards, or zoning code 
83.1 	requirements. Preference must also be given among comparable proposals to proposals for 
83.2 	projects that are accessible to transportation systems, jobs, schools, and other services.
83.3 	(c) (d) If a grant or loan is used for demolition or removal of existing structures, the 
83.4 	cleared land must be used for the construction of housing to be owned or rented by persons 
83.5 	who meet the income limits of this section or for other housing-related purposes that primarily 
83.6 	benefit the persons residing in the adjacent housing. In making selections for grants or loans 
83.7 	for projects that demolish affordable housing units, the agency must review the potential 
83.8 	displacement of residents and consider the extent to which displacement of residents is 
83.9 	minimized.

83.10 	EFFECTIVE DATE. This section is effective July 1, 2020.

83.11 	Sec. 27. [462A.355] ADVANCES TO MINNESOTA MANUFACTURED HOME 
83.12 	RELOCATION TRUST FUND.
83.13 	(a) The Minnesota Housing Finance Agency or Department of Management and Budget 
83.14 	as determined by the commissioner of management and budget, is authorized to advance 
83.15 	up to $400,000 from state appropriations or other resources to the Minnesota manufactured 
83.16 	home relocation trust fund established under section 462A.35 if the account balance in the 
83.17 	Minnesota manufactured home relocation trust fund is insufficient to pay the amounts 
83.18 	claimed under section 327C.095, subdivision 13.
83.19 	(b) The Minnesota Housing Finance Agency or Department of Management and Budget 
83.20 	shall be reimbursed from the Minnesota manufactured home relocation trust fund for any 
83.21 	money advanced by the agency under paragraph (a) to the fund. Approved claims for payment 
83.22 	to manufactured home owners shall be paid prior to the money being advanced by the agency 
83.23 	or the department to the fund.

83.24 	Sec. 28. Minnesota Statutes 2018, section 462A.38, subdivision 1, is amended to read:
83.25 		Subdivision 1.Establishment. A workforce and affordable homeownership development 
83.26 	program is established to award homeownership development grants to cities, tribal 
83.27 	governments, nonprofit organizations, cooperatives created under chapter 308A or 308B, 
83.28 	and community land trusts created for the purposes outlined in section 462A.31, subdivision 
83.29 	1, for development of workforce and affordable homeownership projects. The purpose of 
83.30 	the program is to increase the supply of workforce and affordable, owner-occupied 
83.31 	multifamily or single-family housing throughout Minnesota.

84.1 	Sec. 29. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
84.2 	to read:
84.3 		Subd. 1a.Aggregate bond limitation. "Aggregate bond limitation" means up to 55 
84.4 	percent of the reasonably expected aggregate basis of a residential rental project and the 
84.5 	land on which the project is or will be located.

84.6 	EFFECTIVE DATE. This section is effective January 1, 2020.

84.7 	Sec. 30. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
84.8 	to read:
84.9 		Subd. 1b.AMI. "AMI" means the area median income for the applicable county or 
84.10 	metropolitan area as published by the Department of Housing and Urban Development, as 
84.11 	adjusted for household size.

84.12 	EFFECTIVE DATE. This section is effective January 1, 2020.

84.13 	Sec. 31. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
84.14 	to read:
84.15 		Subd. 12a.LIHTC. "LIHTC" means low-income housing tax credits under section 42 
84.16 	of the Internal Revenue Code of 1986, as amended.

84.17 	EFFECTIVE DATE. This section is effective January 1, 2020.

84.18 	Sec. 32. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
84.19 	to read:
84.20 		Subd. 21a.Preservation project. "Preservation project" means any residential rental 
84.21 	project, regardless of whether or not the project is restricted to persons of a certain age or 
84.22 	older, that is expected to generate low-income housing tax credits under section 42 of the 
84.23 	Internal Revenue Code of 1986, as amended, and (1) receives federal project-based rental 
84.24 	assistance, or (2) is funded through a loan from or guaranteed by the United States 
84.25 	Department of Agriculture's Rural Development Program. In addition, to qualify as a 
84.26 	preservation project, the amount of bonds requested in the application must not exceed the 
84.27 	aggregate bond limitation.

84.28 	EFFECTIVE DATE. This section is effective January 1, 2020.

85.1 	Sec. 33. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
85.2 	to read:
85.3 		Subd. 30.30 percent AMI residential rental project. "30 percent AMI residential 
85.4 	rental project" means a residential rental project that does not otherwise qualify as a 
85.5 	preservation project, is expected to generate low-income housing tax credits under section 
85.6 	42 of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential 
85.7 	units, and in which:
85.8 	(1) all the residential units of the project:
85.9 	(i) are reserved for tenants whose income, on average, is 30 percent of AMI or less;
85.10 	(ii) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code 
85.11 	of 1986, as amended; and
85.12 	(iii) are subject to rent and income restrictions for a period of not less than 30 years; or
85.13 	(2)(i) is located outside of the metropolitan area as defined in section 473.121, subdivision 
85.14 	2, and within a county or metropolitan area that has a current median area gross income 
85.15 	that is less than the statewide area median income for Minnesota;
85.16 	(ii) all of the units of the project are rent-restricted in accordance with section 42(g)(2) 
85.17 	of the Internal Revenue Code of 1986, as amended; and
85.18 	(iii) all of the units of the project are subject to the applicable rent and income restrictions 
85.19 	for a period of not less than 30 years.
85.20 	In addition, to qualify as a 30 percent AMI residential project, the amount of bonds 
85.21 	requested in the application must not exceed the aggregate bond limitation.
85.22 	For purposes of this subdivision, "on average" means the average of the applicable 
85.23 	income limitation level for a project determined on a unit-by-unit basis for example, a project 
85.24 	with one-half of its units subject to income limitations of not greater than 20 percent AMI 
85.25 	and one-half subject to income limitations of not greater than 40 percent AMI would be 
85.26 	subject to an income limitation on average of not greater than 30 percent AMI.

85.27 	EFFECTIVE DATE. This section is effective January 1, 2020.

85.28 	Sec. 34. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
85.29 	to read:
85.30 		Subd. 31.50 percent AMI residential rental project. "50 percent AMI residential 
85.31 	rental project" means a residential rental project that does not qualify as a preservation 
86.1 	project or 30 percent AMI residential rental project, is expected to generate low-income 
86.2 	housing tax credits under section 42 of the Internal Revenue Code of 1986, as amended, 
86.3 	from 100 percent of its residential units, and in which all the residential units of the project:
86.4 	(1) are reserved for tenants whose income, on average, is 50 percent of AMI or less;
86.5 	(2) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code 
86.6 	of 1986, as amended; and
86.7 	(3) are subject to rent and income restrictions for a period of not less than 30 years.
86.8 	In addition, to qualify as a 50 percent AMI residential rental project, the amount of bonds 
86.9 	requested in the application must not exceed the aggregate bond limitation.
86.10 	For purposes of this subdivision, "on average" means the average of the applicable 
86.11 	income limitation level for a project determined on a unit-by-unit basis for example, a project 
86.12 	with one-half of its units subject to income limitations of not greater than 40 percent AMI 
86.13 	and one-half subject to income limitations of not greater than 60 percent AMI would be 
86.14 	subject to an income limitation on average of not greater than 50 percent AMI.

86.15 	EFFECTIVE DATE. This section is effective January 1, 2020.

86.16 	Sec. 35. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
86.17 	to read:
86.18 		Subd. 32.100 percent LIHTC project. "100 percent LIHTC project" means a residential 
86.19 	rental project that is expected to generate low-income housing tax credits under section 42 
86.20 	of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential units 
86.21 	and does not otherwise qualify as a preservation project, 30 percent AMI residential rental 
86.22 	project, or 50 percent AMI residential rental project. In addition, to qualify as a 100 percent 
86.23 	LIHTC project, the amount of bonds requested in the application must not exceed the 
86.24 	aggregate bond limitation.

86.25 	EFFECTIVE DATE. This section is effective January 1, 2020.

86.26 	Sec. 36. Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision 
86.27 	to read:
86.28 		Subd. 33.20 percent LIHTC project. "20 percent LIHTC project" means a residential 
86.29 	rental project that is expected to generate low-income housing tax credits under section 42 
86.30 	of the Internal Revenue Code of 1986, as amended, from at least 20 percent of its residential 
86.31 	units and does not otherwise qualify as a preservation project, 30 percent AMI residential 
87.1 	rental project, 50 percent AMI residential rental project, or 100 percent LIHTC project. In 
87.2 	addition, to qualify as a 20 percent LIHTC project, the amount of bonds requested in the 
87.3 	application must not exceed the aggregate bond limitation.

87.4 	EFFECTIVE DATE. This section is effective January 1, 2020.

87.5 	Sec. 37. Minnesota Statutes 2018, section 474A.03, subdivision 1, is amended to read:
87.6 		Subdivision 1.Under federal tax law; allocations. At the beginning of each calendar 
87.7 	year after December 31, 2001, the commissioner shall determine the aggregate dollar amount 
87.8 	of the annual volume cap under federal tax law for the calendar year, and of this amount 
87.9 	the commissioner shall make the following allocation:
87.10 	(1) $74,530,000 to the small issue pool;
87.11 	(2) $122,060,000 to the housing pool, of which 31 27 percent of the adjusted allocation 
87.12 	is reserved until the last Monday in July June each year until 2021 for single-family housing 
87.13 	programs, after which 31 percent of the adjusted allocation is reserved until the last Monday 
87.14 	in June for single-family programs;
87.15 	(3) $12,750,000 to the public facilities pool; and
87.16 	(4) amounts to be allocated as provided in subdivision 2a.
87.17 	If the annual volume cap is greater or less than the amount of bonding authority allocated 
87.18 	under clauses (1) to (4) and subdivision 2a, paragraph (a), clauses (1) to (4), the allocation 
87.19 	must be adjusted so that each adjusted allocation is the same percentage of the annual volume 
87.20 	cap as each original allocation is of the total bonding authority originally allocated.

87.21 	EFFECTIVE DATE. This section is effective January 1, 2020.

87.22 	Sec. 38. Minnesota Statutes 2018, section 474A.04, subdivision 1a, is amended to read:
87.23 		Subd. 1a.Entitlement reservations. Any amount returned by an entitlement issuer 
87.24 	before July 15 the last Monday in June shall be reallocated through the housing pool. Any 
87.25 	amount returned on or after July 15 the last Monday in June shall be reallocated through 
87.26 	the unified pool. An amount returned after the last Monday in November shall be reallocated 
87.27 	to the Minnesota Housing Finance Agency.

87.28 	EFFECTIVE DATE. This section is effective January 1, 2020.

88.1 	Sec. 39. Minnesota Statutes 2018, section 474A.061, subdivision 1, is amended to read:
88.2 		Subdivision 1.Allocation application; small issue pool and public facilities pool. (a) 
88.3 	For any requested allocations from the small issue pool and the public facilities pool, an 
88.4 	issuer may apply for an allocation under this section by submitting to the department an 
88.5 	application on forms provided by the department, accompanied by (1) a preliminary 
88.6 	resolution, (2) a statement of bond counsel that the proposed issue of obligations requires 
88.7 	an allocation under this chapter and the Internal Revenue Code, (3) the type of qualified 
88.8 	bonds to be issued, (4) an application deposit in the amount of one percent of the requested 
88.9 	allocation before the last Monday in July June, or in the amount of two percent of the 
88.10 	requested allocation on or after the last Monday in July June, and (5) a public purpose 
88.11 	scoring worksheet for manufacturing project and enterprise zone facility project applications, 
88.12 	and (6) for residential rental projects, a statement from the applicant or bond counsel as to 
88.13 	whether the project preserves existing federally subsidized housing for residential rental 
88.14 	project applications and whether the project is restricted to persons who are 55 years of age 
88.15 	or older. The issuer must pay the application deposit by a check made payable to the 
88.16 	Department of Management and Budget. The Minnesota Housing Finance Agency, the 
88.17 	Minnesota Rural Finance Authority, and the Minnesota Office of Higher Education may 
88.18 	apply for and receive an allocation under this section without submitting an application 
88.19 	deposit.
88.20 	(b) An entitlement issuer may not apply for an allocation from the public facilities pool
88.21 	under this subdivision unless it has either permanently issued bonds equal to the amount of 
88.22 	its entitlement allocation for the current year plus any amount of bonding authority carried 
88.23 	forward from previous years or returned for reallocation all of its unused entitlement 
88.24 	allocation. An entitlement issuer may not apply for an allocation from the housing pool 
88.25 	unless it either has permanently issued bonds equal to any amount of bonding authority 
88.26 	carried forward from a previous year or has returned for reallocation any unused bonding 
88.27 	authority carried forward from a previous year. For purposes of this subdivision, its 
88.28 	entitlement allocation includes an amount obtained under section 474A.04, subdivision 6. 
88.29 	This paragraph does not apply to an application from the Minnesota Housing Finance Agency 
88.30 	for an allocation under subdivision 2a for cities who choose to have the agency issue bonds 
88.31 	on their behalf.
88.32 	(c) If an application is rejected under this section, the commissioner must notify the 
88.33 	applicant and return the application deposit to the applicant within 30 days unless the 
88.34 	applicant requests in writing that the application be resubmitted. The granting of an allocation 
88.35 	of bonding authority under this section must be evidenced by a certificate of allocation.

89.1 	EFFECTIVE DATE. This section is effective January 1, 2020.

89.2 	Sec. 40. Minnesota Statutes 2018, section 474A.061, is amended by adding a subdivision 
89.3 	to read:
89.4 		Subd. 1a.Allocation application; housing pool. (a) For any requested allocations from 
89.5 	the housing pool, an issuer may apply for an allocation under this section by submitting to 
89.6 	the department an application on forms provided by the department, accompanied by (1) a 
89.7 	preliminary resolution, (2) a statement of bond counsel that the proposed issue of obligations 
89.8 	requires an allocation under this chapter and the Internal Revenue Code, (3) an application 
89.9 	deposit in the amount of two percent of the requested allocation, (4) a sworn statement from 
89.10 	the applicant identifying the project as either a preservation project, 30 percent AMI 
89.11 	residential rental project, 50 percent AMI residential rental project, 100 percent LIHTC 
89.12 	project, 20 percent LIHTC project, or any other residential rental project, and (5) a 
89.13 	certification from the applicant or its accountant stating that the requested allocation does 
89.14 	not exceed the aggregate bond limitation. The issuer must pay the application deposit to the 
89.15 	Department of Management and Budget. The Minnesota Housing Finance Agency may 
89.16 	apply for and receive an allocation under this section without submitting an application 
89.17 	deposit.
89.18 	(b) An entitlement issuer may not apply for an allocation from the housing pool unless 
89.19 	it either has permanently issued bonds equal to any amount of bonding authority carried 
89.20 	forward from a previous year or has returned for reallocation any unused bonding authority 
89.21 	carried forward from a previous year. For purposes of this subdivision, its entitlement 
89.22 	allocation includes an amount obtained under section 474A.04, subdivision 6. This paragraph 
89.23 	does not apply to an application from the Minnesota Housing Finance Agency for an 
89.24 	allocation under subdivision 2a for cities who choose to have the agency issue bonds on the 
89.25 	city's behalf.
89.26 	(c) If an application is rejected under this section, the commissioner must notify the 
89.27 	applicant and return the application deposit to the applicant within 30 days unless the 
89.28 	applicant requests in writing that the application be resubmitted. The granting of an allocation 
89.29 	of bonding authority under this section must be evidenced by a certificate of allocation.

89.30 	EFFECTIVE DATE. This section is effective January 1, 2020.

89.31 	Sec. 41. Minnesota Statutes 2018, section 474A.061, subdivision 2a, is amended to read:
89.32 		Subd. 2a.Housing pool allocation. (a) Commencing on the second Tuesday in January 
89.33 	and continuing on each Monday through July 15 the last Monday in June, the commissioner 
90.1 	shall allocate available bonding authority from the housing pool to applications received 
90.2 	on or before the Monday of the preceding week for residential rental projects that meet the 
90.3 	eligibility criteria under section 474A.047. Allocations of available bonding authority from 
90.4 	the housing pool for eligible residential rental projects shall be awarded in the following 
90.5 	order of priority: (1) projects that preserve existing federally subsidized housing; (2) projects 
90.6 	that are not restricted to persons who are 55 years of age or older; and (3) other residential 
90.7 	rental projects. Prior to May 15, no allocation shall be made to a project restricted to persons 
90.8 	who are 55 years of age or older.
90.9 	(1) preservation projects;
90.10 	(2) 30 percent AMI residential rental projects;
90.11 	(3) 50 percent AMI residential rental projects;
90.12 	(4) 100 percent LIHTC projects;
90.13 	(5) 20 percent LIHTC projects; and
90.14 	(6) other residential rental projects for which the amount of bonds requested in their 
90.15 	respective applications do not exceed the aggregate bond limitation.
90.16 	If an issuer that receives an allocation under this paragraph does not issue obligations equal 
90.17 	to all or a portion of the allocation received within 120 days of the allocation or returns the 
90.18 	allocation to the commissioner, the amount of the allocation is canceled and returned for 
90.19 	reallocation through the housing pool or to the unified pool after July 15. If there are two 
90.20 	or more applications for residential rental projects at the same priority level and there is 
90.21 	insufficient bonding authority to provide allocations for all the projects in any one allocation 
90.22 	period, available bonding authority shall be randomly awarded by lot but only for projects 
90.23 	that can receive the full amount of their respective requested allocations. If a residential 
90.24 	rental project does not receive any of its requested allocation pursuant to this paragraph and 
90.25 	the project applies for an allocation of bonds again in the same calendar year or to the next 
90.26 	successive housing pool, the project shall be fully funded up to its original application 
90.27 	request for bonding authority before any new project, applying in the same allocation period, 
90.28 	that has an equal priority shall receive bonding authority. An issuer that receives an allocation 
90.29 	under this paragraph must issue obligations equal to all or a portion of the allocation received 
90.30 	on or before 180 days of the allocation. If an issuer that receives an allocation under this 
90.31 	paragraph does not issue obligations equal to all or a portion of the allocation received 
90.32 	within the time period provided in this paragraph or returns the allocation to the 
90.33 	commissioner, the amount of the allocation is canceled and returned for reallocation through 
90.34 	the housing pool or to the unified pool after July 1.
91.1 	(b) After January 1, and through January 15, The Minnesota Housing Finance Agency 
91.2 	may accept applications from cities for single-family housing programs which meet program 
91.3 	requirements as follows:
91.4 	(1) the housing program must meet a locally identified housing need and be economically 
91.5 	viable;
91.6 	(2) the adjusted income of home buyers may not exceed 80 percent of the greater of 
91.7 	statewide or area median income as published by the Department of Housing and Urban 
91.8 	Development, adjusted for household size;
91.9 	(3) house price limits may not exceed the federal price limits established for mortgage 
91.10 	revenue bond programs. Data on the home purchase price amount, mortgage amount, income, 
91.11 	household size, and race of the households served in the previous year's single-family 
91.12 	housing program, if any, must be included in each application; and
91.13 	(4) for applicants who choose to have the agency issue bonds on their behalf, an 
91.14 	application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal 
91.15 	to one percent of the requested allocation must be submitted to the Minnesota Housing 
91.16 	Finance Agency before the agency forwards the list specifying the amounts allocated to the 
91.17 	commissioner under paragraph (d). The agency shall submit the city's application fee and 
91.18 	application deposit to the commissioner when requesting an allocation from the housing 
91.19 	pool.
91.20 	Applications by a consortium shall include the name of each member of the consortium 
91.21 	and the amount of allocation requested by each member.
91.22 	(c) Any amounts remaining in the housing pool after July June 15 are available for 
91.23 	single-family housing programs for cities that applied in January and received an allocation 
91.24 	under this section in the same calendar year. For a city that chooses to issue bonds on its 
91.25 	own behalf or pursuant to a joint powers agreement, the agency must allot available bonding 
91.26 	authority based on the formula in paragraphs (d) and (f). Allocations will be made loan by 
91.27 	loan, on a first-come, first-served basis among cities on whose behalf the Minnesota Housing 
91.28 	Finance Agency issues bonds.
91.29 	Any city that received an allocation pursuant to paragraph (f) in the same calendar year 
91.30 	that wishes to issue bonds on its own behalf or pursuant to a joint powers agreement for an 
91.31 	amount becoming available for single-family housing programs after July June 15 shall 
91.32 	notify the Minnesota Housing Finance Agency by July June 15. The Minnesota Housing 
91.33 	Finance Agency shall notify each city making a request of the amount of its allocation within 
91.34 	three business days after July June 15. The city must comply with paragraph (f).
92.1 	For purposes of paragraphs (a) to (h), "city" means a county or a consortium of local 
92.2 	government units that agree through a joint powers agreement to apply together for 
92.3 	single-family housing programs, and has the meaning given it in section 462C.02, subdivision 
92.4 	6. "Agency" means the Minnesota Housing Finance Agency.
92.5 	(d) The total amount of allocation for mortgage bonds for one city is limited to the lesser 
92.6 	of: (i) the amount requested, or (ii) the product of the total amount available for mortgage 
92.7 	bonds from the housing pool, multiplied by the ratio of each applicant's population as 
92.8 	determined by the most recent estimate of the city's population released by the state 
92.9 	demographer's office to the total of all the applicants' population, except that each applicant 
92.10 	shall be allocated a minimum of $100,000 regardless of the amount requested or the amount 
92.11 	determined under the formula in clause (ii). If a city applying for an allocation is located 
92.12 	within a county that has also applied for an allocation, the city's population will be deducted 
92.13 	from the county's population in calculating the amount of allocations under this paragraph.
92.14 	Upon determining the amount of each applicant's allocation, the agency shall forward 
92.15 	to the commissioner a list specifying the amounts allotted to each application with all 
92.16 	application fees and deposits from applicants who choose to have the agency issue bonds 
92.17 	on their behalf.
92.18 	Total allocations from the housing pool for single-family housing programs may not 
92.19 	exceed 31 27 percent of the adjusted allocation to the housing pool until after July June 15
92.20 	in 2020 and 2021, after which the allocations may not exceed 31 percent of the adjusted 
92.21 	allocation to the housing pool until after June 15.
92.22 	(e) The agency may issue bonds on behalf of participating cities. The agency shall request 
92.23 	an allocation from the commissioner for all applicants who choose to have the agency issue 
92.24 	bonds on their behalf and the commissioner shall allocate the requested amount to the 
92.25 	agency. The agency may request an allocation at any time after the second Tuesday in 
92.26 	January and through the last Monday in July June. After awarding an allocation and receiving 
92.27 	a notice of issuance for the mortgage bonds issued on behalf of the participating cities, the 
92.28 	commissioner shall transfer the application deposits to the Minnesota Housing Finance 
92.29 	Agency to be returned to the participating cities. The Minnesota Housing Finance Agency 
92.30 	shall return any application deposit to a city that paid an application deposit under paragraph 
92.31 	(b), clause (4), but was not part of the list forwarded to the commissioner under paragraph 
92.32 	(d).
92.33 	(f) A city may choose to issue bonds on its own behalf or through a joint powers 
92.34 	agreement and may request an allocation from the commissioner by forwarding an application 
93.1 	with an application fee pursuant to section 474A.03, subdivision 4, and a one percent 
93.2 	application deposit to the commissioner no later than the Monday of the week preceding 
93.3 	an allocation. If the total amount requested by all applicants exceeds the amount available 
93.4 	in the pool, the city may not receive a greater allocation than the amount it would have 
93.5 	received under the list forwarded by the Minnesota Housing Finance Agency to the 
93.6 	commissioner. No city may request or receive an allocation from the commissioner until 
93.7 	the list under paragraph (d) has been forwarded to the commissioner. A city must request 
93.8 	an allocation from the commissioner no later than the last Monday in July June. No city 
93.9 	may receive an allocation from the housing pool for mortgage bonds which has not first 
93.10 	applied to the Minnesota Housing Finance Agency. The commissioner shall allocate the 
93.11 	requested amount to the city or cities subject to the limitations under this paragraph.
93.12 	If a city issues mortgage bonds from an allocation received under this paragraph, the 
93.13 	issuer must provide for the recycling of funds into new loans. If the issuer is not able to 
93.14 	provide for recycling, the issuer must notify the commissioner in writing of the reason that 
93.15 	recycling was not possible and the reason the issuer elected not to have the Minnesota 
93.16 	Housing Finance Agency issue the bonds. "Recycling" means the use of money generated 
93.17 	from the repayment and prepayment of loans for further eligible loans or for the redemption 
93.18 	of bonds and the issuance of current refunding bonds.
93.19 	(g) No entitlement city or county or city in an entitlement county may apply for or be 
93.20 	allocated authority to issue mortgage bonds or use mortgage credit certificates from the 
93.21 	housing pool. No city in an entitlement county may apply for or be allocated authority to 
93.22 	issue residential rental bonds from the housing pool or the unified pool.
93.23 	(h) A city that does not use at least 50 percent of its allotment by the date applications 
93.24 	are due for the first allocation that is made from the housing pool for single-family housing 
93.25 	programs in the immediately succeeding calendar year may not apply to the housing pool 
93.26 	for a single-family mortgage bond or mortgage credit certificate program allocation that 
93.27 	exceeds the amount of its allotment for the preceding year that was used by the city in the 
93.28 	immediately preceding year or receive an allotment from the housing pool in the succeeding 
93.29 	calendar year that exceeds the amount of its allotment for the preceding year that was used 
93.30 	in the preceding year. The minimum allotment is $100,000 for an allocation made prior to 
93.31 	July June 15, regardless of the amount used in the preceding calendar year, except that a 
93.32 	city whose allocation in the preceding year was the minimum amount of $100,000 and who 
93.33 	did not use at least 50 percent of its allocation from the preceding year is ineligible for an 
93.34 	allocation in the immediate succeeding calendar year. Each local government unit in a 
93.35 	consortium must meet the requirements of this paragraph.

94.1 	EFFECTIVE DATE. This section is effective January 1, 2020.

94.2 	Sec. 42. Minnesota Statutes 2018, section 474A.061, subdivision 2b, is amended to read:
94.3 		Subd. 2b.Small issue pool allocation. Commencing on the second Tuesday in January 
94.4 	and continuing on each Monday through the last Monday in July June, the commissioner 
94.5 	shall allocate available bonding authority from the small issue pool to applications received 
94.6 	on or before the Monday of the preceding week for manufacturing projects and enterprise 
94.7 	zone facility projects. From the second Tuesday in January through the last Monday in July
94.8 	June, the commissioner shall reserve $5,000,000 of the available bonding authority from 
94.9 	the small issue pool for applications for agricultural development bond loan projects of the 
94.10 	Minnesota Rural Finance Authority.
94.11 	Beginning in calendar year 2002, on the second Tuesday in January through the last 
94.12 	Monday in July June, the commissioner shall reserve $10,000,000 of available bonding 
94.13 	authority in the small issue pool for applications for student loan bonds of or on behalf of 
94.14 	the Minnesota Office of Higher Education. The total amount of allocations for student loan 
94.15 	bonds from the small issue pool may not exceed $10,000,000 per year.
94.16 	The commissioner shall reserve $10,000,000 until the day after the last Monday in 
94.17 	February, $10,000,000 until the day after the last Monday in April, and $10,000,000 until 
94.18 	the day after the last Monday in June in the small issue pool for enterprise zone facility 
94.19 	projects and manufacturing projects. The amount of allocation provided to an issuer for a 
94.20 	specific enterprise zone facility project or manufacturing project will be based on the number 
94.21 	of points received for the proposed project under the scoring system under section 474A.045.
94.22 	If there are two or more applications for manufacturing and enterprise zone facility 
94.23 	projects from the small issue pool and there is insufficient bonding authority to provide 
94.24 	allocations for all projects in any one week, the available bonding authority shall be awarded 
94.25 	based on the number of points awarded a project under section 474A.045, with those projects 
94.26 	receiving the greatest number of points receiving allocation first. If two or more applications 
94.27 	receive an equal number of points, available bonding authority shall be awarded by lot 
94.28 	unless otherwise agreed to by the respective issuers.

94.29 	EFFECTIVE DATE. This section is effective January 1, 2020.

94.30 	Sec. 43. Minnesota Statutes 2018, section 474A.061, subdivision 2c, is amended to read:
94.31 		Subd. 2c.Public facilities pool allocation. From the beginning of the calendar year and 
94.32 	continuing for a period of 120 days, the commissioner shall reserve $5,000,000 of the 
95.1 	available bonding authority from the public facilities pool for applications for public facilities 
95.2 	projects to be financed by the Western Lake Superior Sanitary District. Commencing on 
95.3 	the second Tuesday in January and continuing on each Monday through the last Monday 
95.4 	in July June, the commissioner shall allocate available bonding authority from the public 
95.5 	facilities pool to applications for eligible public facilities projects received on or before the 
95.6 	Monday of the preceding week. If there are two or more applications for public facilities 
95.7 	projects from the pool and there is insufficient available bonding authority to provide 
95.8 	allocations for all projects in any one week, the available bonding authority shall be awarded 
95.9 	by lot unless otherwise agreed to by the respective issuers.

95.10 	EFFECTIVE DATE. This section is effective January 1, 2020.

95.11 	Sec. 44. Minnesota Statutes 2018, section 474A.061, subdivision 4, is amended to read:
95.12 		Subd. 4.Return of allocation; deposit refund for small issue pool or public facilities 
95.13 	pool. (a) For any requested allocations from the small issue pool or the public facilities 
95.14 	pool, if an issuer that receives an allocation under this section determines that it will not 
95.15 	issue obligations equal to all or a portion of the allocation received under this section within 
95.16 	120 days of allocation or within the time period permitted by federal tax law, whichever is 
95.17 	less, the issuer must notify the department. If the issuer notifies the department or the 120-day 
95.18 	period since allocation has expired prior to the last Monday in July June, the amount of 
95.19 	allocation is canceled and returned for reallocation through the pool from which it was 
95.20 	originally allocated. If the issuer notifies the department or the 120-day period since allocation 
95.21 	has expired on or after the last Monday in July June, the amount of allocation is canceled 
95.22 	and returned for reallocation through the unified pool. If the issuer notifies the department 
95.23 	after the last Monday in November, the amount of allocation is canceled and returned for 
95.24 	reallocation to the Minnesota Housing Finance Agency. To encourage a competitive 
95.25 	application process, the commissioner shall reserve, for new applications, the amount of 
95.26 	allocation that is canceled and returned for reallocation under this section for a minimum 
95.27 	of seven calendar days.
95.28 	(b) An issuer that returns for reallocation all or a portion of an allocation received under 
95.29 	this section subdivision within 120 days of allocation shall receive within 30 days a refund 
95.30 	equal to:
95.31 	(1) one-half of the application deposit for the amount of bonding authority returned 
95.32 	within 30 days of receiving allocation;
95.33 	(2) one-fourth of the application deposit for the amount of bonding authority returned 
95.34 	between 31 and 60 days of receiving allocation; and
96.1 	(3) one-eighth of the application deposit for the amount of bonding authority returned 
96.2 	between 61 and 120 days of receiving allocation.
96.3 	(c) No refund shall be available for allocations returned 120 or more days after receiving 
96.4 	the allocation or beyond the last Monday in November.

96.5 	EFFECTIVE DATE. This section is effective January 1, 2020.

96.6 	Sec. 45. Minnesota Statutes 2018, section 474A.061, is amended by adding a subdivision 
96.7 	to read:
96.8 		Subd. 7.Return of allocation; deposit refund for housing pool. (a) For any requested 
96.9 	allocations from the housing pool, if an issuer that receives an allocation under this section 
96.10 	determines that it will not permanently issue obligations equal to all or a portion of the 
96.11 	allocation received under this section within the time period provided under section 
96.12 	474A.061, subdivision 2a, paragraph (a), or within the time period permitted by federal tax 
96.13 	law, whichever is less, the issuer must notify the department. If the issuer notifies the 
96.14 	department or the time period provided under section 474A.061, subdivision 2a, paragraph 
96.15 	(a), has expired prior to the last Monday in June, the amount of allocation is canceled and 
96.16 	returned for reallocation through the housing pool. If the issuer notifies the department or 
96.17 	the time period provided under section 474A.061, subdivision 2a, paragraph (a), has expired 
96.18 	on or after the last Monday in June, the amount of allocation is canceled and returned for 
96.19 	reallocation through the unified pool. If the issuer notifies the department after the last 
96.20 	Monday in November, the amount of allocation is canceled and returned for reallocation 
96.21 	to the Minnesota Housing Finance Agency. To encourage a competitive application process, 
96.22 	the commissioner shall reserve, for new applications, the amount of allocation that is canceled 
96.23 	and returned for reallocation under this section for a minimum of seven calendar days.
96.24 	(b) An issuer that returns for reallocation all or a portion of an allocation received under 
96.25 	this subdivision within 180 days of allocation shall receive within 30 days a refund equal 
96.26 	to:
96.27 	(1) one-half of the application deposit for the amount of bonding authority returned 
96.28 	within 45 days of receiving allocation;
96.29 	(2) one-fourth of the application deposit for the amount of bonding authority returned 
96.30 	between 46 and 90 days of receiving allocation; and
96.31 	(3) one-eighth of the application deposit for the amount of bonding authority returned 
96.32 	between 91 and 180 days of receiving allocation.
97.1 	(c) No refund shall be available for allocations returned 180 or more days after receiving 
97.2 	the allocation or beyond the last Monday in November.

97.3 	EFFECTIVE DATE. This section is effective January 1, 2020.

97.4 	Sec. 46. Minnesota Statutes 2018, section 474A.062, is amended to read:
97.5 	474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY ISSUANCE 
97.6 	EXEMPTION.
97.7 	The Minnesota Office of Higher Education is exempt from the 120-day any time 
97.8 	limitation on issuance requirements of bonds set forth in this chapter and may carry forward 
97.9 	allocations for student loan bonds, subject to carryforward notice requirements of section 
97.10 	474A.131, subdivision 2.

97.11 	EFFECTIVE DATE. This section is effective January 1, 2020.

97.12 	Sec. 47. Minnesota Statutes 2018, section 474A.091, subdivision 1, is amended to read:
97.13 		Subdivision 1.Unified pool amount. On the day after the last Monday in July June any 
97.14 	bonding authority remaining unallocated from the small issue pool, the housing pool, and 
97.15 	the public facilities pool is transferred to the unified pool and must be reallocated as provided 
97.16 	in this section.

97.17 	EFFECTIVE DATE. This section is effective January 1, 2020.

97.18 	Sec. 48. Minnesota Statutes 2018, section 474A.091, subdivision 2, is amended to read:
97.19 		Subd. 2.Application for residential rental projects. (a) Issuers may apply for an 
97.20 	allocation for residential rental bonds under this section by submitting to the department an 
97.21 	application on forms provided by the department accompanied by:
97.22 	(1) a preliminary resolution,;
97.23 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
97.24 	allocation under this chapter and the Internal Revenue Code,;
97.25 	(3) the type of qualified bonds to be issued, (4) an application deposit in the amount of 
97.26 	two percent of the requested allocation, (5) a public purpose scoring worksheet for 
97.27 	manufacturing and enterprise zone applications, and (6) for residential rental projects, a 
97.28 	statement from the applicant or bond counsel as to whether the project preserves existing 
97.29 	federally subsidized housing and whether the project is restricted to persons who are 55 
97.30 	years of age or older.;
98.1 	(4) a sworn statement from the applicant identifying the project as a preservation project, 
98.2 	30 percent AMI residential rental project, 50 percent AMI residential rental project, 100 
98.3 	percent LIHTC project, 20 percent LIHTC project, or any other residential rental project; 
98.4 	and
98.5 	(5) a certification from the applicant or its accountant stating that the requested allocation 
98.6 	does not exceed the aggregate bond limitation.
98.7 	The issuer must pay the application deposit by check to the Department of Management 
98.8 	and Budget. An entitlement issuer may not apply for an allocation for public facility bonds,
98.9 	residential rental project bonds, or mortgage bonds under this section unless it has either 
98.10 	permanently issued bonds equal to the amount of its entitlement allocation for the current 
98.11 	year plus any amount carried forward from previous years or returned for reallocation all 
98.12 	of its unused entitlement allocation. For purposes of this subdivision, its entitlement allocation 
98.13 	includes an amount obtained under section 474A.04, subdivision 6.
98.14 	(b) An issuer that receives an allocation under this subdivision must permanently issue 
98.15 	obligations equal to all or a portion of the allocation received on or before 180 days of the 
98.16 	allocation. If an issuer that receives an allocation under this subdivision does not permanently 
98.17 	issue obligations equal to all or a portion of the allocation received within the time period 
98.18 	provided in this paragraph or returns the allocation to the commissioner, the amount of the 
98.19 	allocation is canceled and returned for reallocation through the unified pool.
98.20 	(c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision, 
98.21 	the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds 
98.22 	under this section prior to the first Monday in October, but may be awarded allocations for 
98.23 	mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota 
98.24 	Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota 
98.25 	Rural Finance Authority may apply for and receive an allocation under this section without 
98.26 	submitting an application deposit.

98.27 	EFFECTIVE DATE. This section is effective January 1, 2020.

98.28 	Sec. 49. Minnesota Statutes 2018, section 474A.091, is amended by adding a subdivision 
98.29 	to read:
98.30 		Subd. 2a.Application for all other types of qualified bonds. (a) Issuers may apply 
98.31 	for an allocation for all types of qualified bonds other than residential rental bonds under 
98.32 	this section by submitting to the department an application on forms provided by the 
98.33 	department accompanied by:
99.1 	(1) a preliminary resolution;
99.2 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
99.3 	allocation under this chapter and the Internal Revenue Code;
99.4 	(3) the type of qualified bonds to be issued;
99.5 	(4) an application deposit in the amount of two percent of the requested allocation; and
99.6 	(5) a public purpose scoring worksheet for manufacturing and enterprise zone 
99.7 	applications.
99.8 	The issuer must pay the application deposit to the Department of Management and Budget. 
99.9 	An entitlement issuer may not apply for an allocation for public facility bonds or mortgage 
99.10 	bonds under this section unless it has either permanently issued bonds equal to the amount 
99.11 	of its entitlement allocation for the current year plus any amount carried forward from 
99.12 	previous years or returned for reallocation all of its unused entitlement allocation. For 
99.13 	purposes of this subdivision, an entitlement allocation includes an amount obtained under 
99.14 	section 474A.04, subdivision 6.
99.15 	(b) An issuer that receives an allocation under this subdivision must permanently issue 
99.16 	obligations equal to all or a portion of the allocation received on or before 120 days of the 
99.17 	allocation. If an issuer that receives an allocation under this subdivision does not permanently 
99.18 	issue obligations equal to all or a portion of the allocation received within the time period 
99.19 	provided in this paragraph or returns the allocation to the commissioner, the amount of the 
99.20 	allocation is canceled and returned for reallocation through the unified pool.
99.21 	(c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision, 
99.22 	the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds 
99.23 	under this section prior to the first Monday in October, but may be awarded allocations for 
99.24 	mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota 
99.25 	Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota 
99.26 	Rural Finance Authority may apply for and receive an allocation under this section without 
99.27 	submitting an application deposit.

99.28 	EFFECTIVE DATE. This section is effective January 1, 2020.

99.29 	Sec. 50. Minnesota Statutes 2018, section 474A.091, subdivision 3, is amended to read:
99.30 		Subd. 3.Allocation procedure. (a) The commissioner shall allocate available bonding 
99.31 	authority under this section on the Monday of every other week beginning with the first 
99.32 	Monday in AugustJuly through and on the last Monday in November. Applications for 
100.1 	allocations must be received by the department by 4:30 p.m. on the Monday preceding the 
100.2 	Monday on which allocations are to be made. If a Monday falls on a holiday, the allocation 
100.3 	will be made or the applications must be received by the next business day after the holiday.
100.4 	(b) Prior to October 1, only the following applications shall be awarded allocations from 
100.5 	the unified pool. Allocations shall be awarded in the following order of priority:
100.6 	(1) applications for residential rental project bonds;
100.7 	(2) applications for small issue bonds for manufacturing projects; and
100.8 	(3) applications for small issue bonds for agricultural development bond loan projects.
100.9 	(c) On the first Monday in October through the last Monday in November, allocations 
100.10 	shall be awarded from the unified pool in the following order of priority:
100.11 	(1) applications for student loan bonds issued by or on behalf of the Minnesota Office 
100.12 	of Higher Education;
100.13 	(2) applications for mortgage bonds;
100.14 	(3) applications for public facility projects funded by public facility bonds;
100.15 	(4) applications for small issue bonds for manufacturing projects;
100.16 	(5) applications for small issue bonds for agricultural development bond loan projects;
100.17 	(6) applications for residential rental project bonds;
100.18 	(7) applications for enterprise zone facility bonds;
100.19 	(8) applications for governmental bonds; and
100.20 	(9) applications for redevelopment bonds.
100.21 	(d) If there are two or more applications for manufacturing projects from the unified 
100.22 	pool and there is insufficient bonding authority to provide allocations for all manufacturing 
100.23 	projects in any one allocation period, the available bonding authority shall be awarded based 
100.24 	on the number of points awarded a project under section 474A.045 with those projects 
100.25 	receiving the greatest number of points receiving allocation first. If two or more applications 
100.26 	for manufacturing projects receive an equal amount of points, available bonding authority 
100.27 	shall be awarded by lot unless otherwise agreed to by the respective issuers.
100.28 	(e) If there are two or more applications for enterprise zone facility projects from the 
100.29 	unified pool and there is insufficient bonding authority to provide allocations for all enterprise 
100.30 	zone facility projects in any one allocation period, the available bonding authority shall be 
100.31 	awarded based on the number of points awarded a project under section 474A.045 with 
101.1 	those projects receiving the greatest number of points receiving allocation first. If two or 
101.2 	more applications for enterprise zone facility projects receive an equal amount of points, 
101.3 	available bonding authority shall be awarded by lot unless otherwise agreed to by the 
101.4 	respective issuers.
101.5 	(f) If there are two or more applications for residential rental projects from the unified 
101.6 	pool and there is insufficient bonding authority to provide allocations for all residential 
101.7 	rental projects in any one allocation period, the available bonding authority shall be awarded 
101.8 	in the following order of priority: (1) projects that preserve existing federally subsidized 
101.9 	housing; (2) projects that are not restricted to persons who are 55 years of age or older; and 
101.10 	(3) preservation projects; (2) 30 percent AMI residential rental projects; (3) 50 percent AMI 
101.11 	residential rental projects for which the amount of bonds requested in their respective 
101.12 	applications do not exceed the aggregate bond limitations; (4) 100 percent LIHTC projects; 
101.13 	(5) 20 percent LIHTC projects; and (6) other residential rental projects. If there are two or 
101.14 	more applications for residential rental projects at the same priority level and there is 
101.15 	insufficient bonding authority to provide allocations for all the projects in any one allocation 
101.16 	period, available bonding authority shall be randomly awarded by lot but only for projects 
101.17 	that can receive the full amount of their respective requested allocations. If a residential 
101.18 	rental project does not receive any of its requested allocation pursuant to this paragraph and 
101.19 	the project applies in the next successive housing pool or the next successive unified pool 
101.20 	for an allocation of bonds, the project shall be fully funded up to its original application 
101.21 	request for bonding authority before any new project, applying in the same allocation period, 
101.22 	that has an equal priority shall receive bonding authority.
101.23 	(g) From the first Monday in AugustJuly through the last Monday in November, 
101.24 	$20,000,000 of bonding authority or an amount equal to the total annual amount of bonding 
101.25 	authority allocated to the small issue pool under section 474A.03, subdivision 1, less the 
101.26 	amount allocated to issuers from the small issue pool for that year, whichever is less, is 
101.27 	reserved within the unified pool for small issue bonds to the extent such the amounts are 
101.28 	available within the unified pool.
101.29 	(h) The total amount of allocations for mortgage bonds from the housing pool and the 
101.30 	unified pool may not exceed:
101.31 	(1) $10,000,000 for any one city; or
101.32 	(2) $20,000,000 for any number of cities in any one county.
101.33 	(i) The total amount of allocations for student loan bonds from the unified pool may not 
101.34 	exceed $25,000,000 per year.
102.1 	(j) If there is insufficient bonding authority to fund all projects within any qualified bond 
102.2 	category other than enterprise zone facility projects, manufacturing projects, and residential 
102.3 	rental projects, allocations shall be awarded by lot unless otherwise agreed to by the 
102.4 	respective issuers.
102.5 	(k) If an application is rejected, the commissioner must notify the applicant and return 
102.6 	the application deposit to the applicant within 30 days unless the applicant requests in writing 
102.7 	that the application be resubmitted.
102.8 	(l) The granting of an allocation of bonding authority under this section must be evidenced 
102.9 	by issuance of a certificate of allocation.

102.10 	EFFECTIVE DATE. This section is effective January 1, 2020.

102.11 	Sec. 51. Minnesota Statutes 2018, section 474A.091, subdivision 5, is amended to read:
102.12 		Subd. 5.Return of allocation; deposit refund. (a) If an issuer that receives an allocation 
102.13 	under this section determines that it will not permanently issue obligations equal to all or a 
102.14 	portion of the allocation received under this section within 120 the applicable number of
102.15 	days of after the allocation required in this chapter or within the time period permitted by 
102.16 	federal tax law, whichever is less, the issuer must notify the department. If the issuer notifies 
102.17 	the department or the 120-dayapplicable period since allocation has expired prior to the 
102.18 	last Monday in November, the amount of allocation is canceled and returned for reallocation 
102.19 	through the unified pool. If the issuer notifies the department on or after the last Monday 
102.20 	in November, the amount of allocation is canceled and returned for reallocation to the 
102.21 	Minnesota Housing Finance Agency. To encourage a competitive application process, the 
102.22 	commissioner shall reserve, for new applications, the amount of allocation that is canceled 
102.23 	and returned for reallocation under this section for a minimum of seven calendar days.
102.24 	(b) An issuer that returns for reallocation all or a portion of an allocation for all types 
102.25 	of bonds other than residential rental project bonds received under this section within 120 
102.26 	days of the allocation shall receive within 30 days a refund equal to:
102.27 	(1) one-half of the application deposit for the amount of bonding authority returned 
102.28 	within 30 days of receiving the allocation;
102.29 	(2) one-fourth of the application deposit for the amount of bonding authority returned 
102.30 	between 31 and 60 days of receiving the allocation; and
102.31 	(3) one-eighth of the application deposit for the amount of bonding authority returned 
102.32 	between 61 and 120 days of receiving the allocation.
103.1 	(c) An issuer that returns for reallocation all or a portion of an allocation for residential 
103.2 	rental project bonds received under this section within 180 days of the allocation shall 
103.3 	receive within 30 days a refund equal to:
103.4 	(1) one-half of the application deposit for the amount of bonding authority returned 
103.5 	within 45 days of receiving the allocation;
103.6 	(2) one-fourth of the application deposit for the amount of bonding authority returned 
103.7 	between 46 and 90 days of receiving the allocation; and
103.8 	(3) one-eighth of the application deposit for the amount of bonding authority returned 
103.9 	between 91 and 180 days of receiving the allocation.
103.10 	(c) (d) No refund of the application deposit shall be available for allocations returned 
103.11 	on or after the last Monday in November.

103.12 	EFFECTIVE DATE. This section is effective January 1, 2020.

103.13 	Sec. 52. Minnesota Statutes 2018, section 474A.131, subdivision 1, is amended to read:
103.14 		Subdivision 1.Notice of issue. (a) Each issuer that issues bonds with an allocation 
103.15 	received under this chapter shall provide a notice of issue to the department on forms 
103.16 	provided by the department stating:
103.17 	(1) the date of issuance of the bonds;
103.18 	(2) the title of the issue;
103.19 	(3) the principal amount of the bonds;
103.20 	(4) the type of qualified bonds under federal tax law;
103.21 	(5) the dollar amount of the bonds issued that were subject to the annual volume cap; 
103.22 	and
103.23 	(6) for entitlement issuers, whether the allocation is from current year entitlement 
103.24 	authority or is from carryforward authority.
103.25 	For obligations that are issued as a part of a series of obligations, a notice must be 
103.26 	provided for each series. A penalty of one-half of the amount of the application deposit not 
103.27 	to exceed $5,000 shall apply to any issue of obligations for which a notice of issue is not 
103.28 	provided to the department within five business days after issuance or before 4:30 p.m. on 
103.29 	the last business day in December, whichever occurs first. Within 30 days after receipt of 
103.30 	a notice of issue the department shall refund a portion of the application deposit equal to 
103.31 	one percent of the amount of the bonding authority actually issued if a one percent application 
104.1 	deposit was made, or equal to two percent of the amount of the bonding authority actually 
104.2 	issued if a two percent application deposit was made, less any penalty amount.
104.3 	(b) If an issuer that receives an allocation under this chapter for a residential rental project 
104.4 	issues obligations as provided in this chapter, the commissioner shall refund 50 percent of 
104.5 	any application deposit previously paid within 30 days of the issuance of the obligations 
104.6 	and the remaining 50 percent will be refunded within 30 days after the date on which:
104.7 	(1) final Internal Revenue Service Forms 8609 are provided to the commissioner with 
104.8 	respect to preservation projects, 30 percent AMI residential rental projects, 50 percent AMI 
104.9 	residential rental projects, 100 percent LIHTC projects, or 20 percent LIHTC projects, or
104.10 	(2) the issuer provides a certification and any other reasonable documentation requested 
104.11 	by the commissioner evidencing that construction of the project has been completed.
104.12 	If the issuer receives an allocation under this chapter for a residential rental project and 
104.13 	fails to issue the bonds within the time permitted by federal law, the application deposit 
104.14 	shall be forfeited.

104.15 	EFFECTIVE DATE. This section is effective January 1, 2020.

104.16 	Sec. 53. Minnesota Statutes 2018, section 474A.131, subdivision 1b, is amended to read:
104.17 		Subd. 1b.Deadline for issuance of qualified bonds. If an issuer fails to notify the 
104.18 	department before 4:30 p.m. on the last business day in December of the permanent issuance 
104.19 	of obligations pursuant to an allocation received for any qualified bond project or issuance 
104.20 	of an entitlement allocation, the allocation is canceled and the bonding authority is allocated 
104.21 	to the Minnesota Housing Finance Agency for carryforward by the commissioner under 
104.22 	section 474A.091, subdivision 6.

104.23 	EFFECTIVE DATE. This section is effective January 1, 2020.

104.24 	Sec. 54. Minnesota Statutes 2018, section 474A.14, is amended to read:
104.25 	474A.14 NOTICE OF AVAILABLE AUTHORITY.
104.26 	The department shall provide at its official website a written notice of the amount of 
104.27 	bonding authority in the housing, small issue, and public facilities pools as soon after January 
104.28 	1 as possible. The department shall provide at its official website a written notice of the 
104.29 	amount of bonding authority available for allocation in the unified pool as soon after August
104.30 	July 1 as possible.

104.31 	EFFECTIVE DATE. This section is effective January 1, 2020.

105.1 	Sec. 55. Minnesota Statutes 2018, section 474A.21, is amended to read:
105.2 	474A.21 APPROPRIATION; RECEIPTS.
105.3 	Any fees collected by the department under sections 474A.01 to 474A.21 must be 
105.4 	deposited in a separate account in the general fund. The amount necessary to refund 
105.5 	application deposits is appropriated to the department from the separate account in the 
105.6 	general fund for that purpose. The interest accruing on application deposits and any 
105.7 	application deposit not refunded as provided under section 474A.061, subdivision 4 or 7, 
105.8 	or 474A.091, subdivision 5, or forfeited as provided under section 474A.131, subdivision 
105.9 	1, paragraph (b), or subdivision 2, must be deposited in the housing trust fund account under 
105.10 	section 462A.201.

105.11 	EFFECTIVE DATE. This section is effective January 1, 2020.

105.12 	Sec. 56. Minnesota Statutes 2018, section 504B.111, is amended to read:
105.13 	504B.111 WRITTEN LEASE REQUIRED; PENALTY.
105.14 	A landlord of a residential building with 12 or more residential units must have a written 
105.15 	lease for each unit rented to a residential tenant. The written lease must identify the specific 
105.16 	unit the residential tenant will occupy before the residential tenant signs the lease.
105.17 	Notwithstanding any other state law or city ordinance to the contrary, a landlord may ask 
105.18 	for the tenant's full name and date of birth on the lease and application. A landlord who fails 
105.19 	to provide a lease, as required under this section, is guilty of a petty misdemeanor.

105.20 	EFFECTIVE DATE. This section is effective the day following final enactment and 
105.21 	applies to leases entered into or renewed on or after that date.

105.22 	Sec. 57. [504B.146] LEASE DURATION NOTICE.
105.23 	A written lease for a residential unit must identify the lease start date and lease end date. 
105.24 	If the lease requires the tenant to move in or out of the residential unit on a date other than 
105.25 	the first or last day of the month, and the rent is prorated, then the lease must indicate the 
105.26 	amount of the prorated rent for the relevant months. The information required by this section 
105.27 	must be provided on the first page of the lease.

105.28 	EFFECTIVE DATE. This section is effective the day following final enactment and 
105.29 	applies to leases entered into or renewed on or after that date.

106.1 	Sec. 58. [504B.147] TIME PERIOD FOR NOTICE TO QUIT OR RENT INCREASE.
106.2 		Subdivision 1.Application. This section applies to a residential lease that provides a 
106.3 	time period for the landlord to give notice to quit the premises or notice of a rent increase 
106.4 	that is different than the time period the tenant is required to give for notice of intention to 
106.5 	quit the premises. For purposes of this section, "notice to quit" includes a notice of 
106.6 	nonrenewal of a lease.
106.7 		Subd. 2.Tenant option to choose notice period. The tenant may give notice of an 
106.8 	intention to quit the premises using either:
106.9 	(1) the time period provided in the lease for the tenant to give a notice of intention to 
106.10 	quit the premises; or
106.11 	(2) the time period provided in the lease for the landlord to give a notice to quit the 
106.12 	premises or notice of a rent increase.
106.13 		Subd. 3.Landlord notice requirements. The landlord may not give a notice to quit the 
106.14 	premises or notice of a rent increase that is shorter than the time period the lease provides 
106.15 	for the tenant to give notice of an intention to quit the premises.
106.16 		Subd. 4.No waiver. The requirements of this section may not be waived or modified 
106.17 	by the parties to a residential lease. Any provision, whether oral or written, of a lease or 
106.18 	other agreement by which any provision of this section is waived by a tenant is contrary to 
106.19 	public policy and void.

106.20 	EFFECTIVE DATE. This section is effective the day following final enactment and 
106.21 	applies to leases entered into or renewed on or after that date.

106.22 	Sec. 59. Minnesota Statutes 2018, section 504B.206, subdivision 3, is amended to read:
106.23 		Subd. 3.Liability for rent; termination of tenancy. (a) A tenant who is a sole tenant 
106.24 	and is terminating a lease under subdivision 1 is responsible for the rent payment for the 
106.25 	full month in which the tenancy terminates. The tenant forfeits all claims for the return of 
106.26 	the security deposit under section 504B.178 and is relieved of any other contractual obligation 
106.27 	for payment of rent or any other charges for the remaining term of the lease, except as 
106.28 	provided in this section. In a sole tenancy, the tenancy terminates on the date specified in 
106.29 	the notice provided to the landlord as required under subdivision 1.
106.30 	(b) In a tenancy with multiple tenants, one of whom is terminating the lease under 
106.31 	subdivision 1, any lease governing all tenants is terminated at the latter later of the end of 
106.32 	the month or the end of the rent interval in which one tenant terminates the lease under 
107.1 	subdivision 1. All tenants are responsible for the rent payment for the full month in which 
107.2 	the tenancy terminates. Upon termination, all tenants forfeit all claims for the return of the 
107.3 	security deposit under section 504B.178 and are relieved of any other contractual obligation 
107.4 	for payment of rent or any other charges for the remaining term of the lease, except as 
107.5 	provided in this section. Any tenant whose tenancy was terminated under this paragraph 
107.6 	may reapply to enter into a new lease with the landlord.
107.7 	(c) This section does not affect a tenant's liability for delinquent, unpaid rent or other 
107.8 	amounts owed to the landlord before the lease was terminated by the tenant under this 
107.9 	section.

107.10 	Sec. 60. ITASCA COUNTY; CERTAIN FEES MAY BE REGULATED.
 107.11 	Itasca County may adopt an ordinance to regulate license fee increases that may be 
107.12 	imposed on a homeowner by the owner or licensor of the underlying land on which the 
107.13 	house is located. If the county adopts an ordinance under this section, the ordinance must 
107.14 	limit any license fee increase to no more than ten percent of the license fee charged in the 
107.15 	preceding 12-month period. In addition, the ordinance must not allow more than one increase 
107.16 	in a 12-month period. "License fee" means a fee paid by a licensee pursuant to a license 
107.17 	agreement granting the licensee permission to use, enter, or occupy an owner's or licensor's 
107.18 	property. The ordinance adopted may only apply to fees imposed pursuant to license 
107.19 	agreements entered into or renewed on or after the effective date of the ordinance.

107.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

107.21 	Sec. 61. REPEALER.
 107.22 	Minnesota Statutes 2018, section 327C.095, subdivision 8, is repealed.

107.23 	ARTICLE 7
107.24 	BROADBAND DEVELOPMENT

107.25	Section 1. BROADBAND DEVELOPMENT APPROPRIATIONS.
 	
107.26 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
107.27 	and for the purposes specified in this article. The appropriations are from the general fund, 
107.28 	or another named fund, and are available for the fiscal years indicated for each purpose. 
107.29 	The figures "2020" and "2021" used in this article mean that the appropriations listed under 
107.30 	them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. 
107.31 	"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" 
107.32 	is fiscal years 2020 and 2021.

108.1				APPROPRIATIONS
	
108.2				Available for the Year
	
108.3				Ending June 30
	
108.4					2020
		2021

108.5
108.6	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT
 	$
	20,250,000
	$
	20,250,000
	
108.7 	(a) $250,000 each year is for the Broadband 
108.8 	Development Office.
108.9 	(b) $20,000,000 in fiscal year 2020 and 
108.10 	$20,000,000 in fiscal year 2021 are 
108.11 	appropriated from the general fund to the 
108.12 	commissioner of employment and economic 
108.13 	development for deposit in the 
108.14 	border-to-border broadband fund account 
108.15 	under Minnesota Statutes, section 116J.396. 
108.16 	The appropriation is onetime and must be used 
108.17 	for grants and the purposes specified under 
108.18 	Minnesota Statutes, section 116J.395.

APPENDIX 

Repealed Minnesota Statutes: 19-5229 

41A.15 DEFINITIONS.Subd. 2a.Biobased content. 
"Biobased content" means a chemical, polymer, monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least 51 percent as determined by testing representative samples using American Society for Testing and Materials specification D6866. 

Subd. 2b.Biobased formulated product. 
"Biobased formulated product" means a product that is not sold primarily for use as food, feed, or fuel and that has a biobased content percentage of at least ten percent as determined by testing representative samples using American Society for Testing and Materials specification D6866, or that contains a biobased chemical constituent that displaces a known hazardous or toxic constituent previously used in the product formulation. 

327C.095 PARK CLOSINGS.Subd. 8.Required filing of notice. 
Subdivisions 6 and 7 apply to manufactured home parks upon which notice has been recorded with the county recorder or registrar of titles in the county where the manufactured home park is located. Any person may file the notice required under this subdivision with the county recorder or registrar of titles. The notice must be in the following form: 

"MANUFACTURED HOME PARK NOTICE 

THIS PROPERTY IS USED AS A MANUFACTURED HOME PARK 

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

PARK OWNER 

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

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

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

LEGAL DESCRIPTION OF PARK 

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

COOPERATIVE ASSOCIATION (IF APPLICABLE)"