HF 153

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 03/08/2016 03:38pm

A bill for an act
relating to state government; establishing urban agriculture development grants;
appropriating money; amending Minnesota Statutes 2014, section 17.115,
subdivisions 2, 3; proposing coding for new law in Minnesota Statutes, chapter 17.

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

Section 1.

new text begin [17.1095] URBAN AGRICULTURE DEVELOPMENT GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The commissioner shall establish and administer
a grant program to provide financial and technical assistance to cities, organizations, or
individuals for urban agriculture projects. Grant applications must be submitted to the
commissioner on forms provided by the commissioner. The commissioner shall award
grants to meritorious projects within the limits of available funding.
new text end

new text begin (b) For purposes of this section, "eligible city" means a Minnesota home rule or
statutory city located in:
new text end

new text begin (1) the seven-county metropolitan area, as defined under section 473.121,
subdivision 2; or
new text end

new text begin (2) the core county or counties of a metropolitan statistical area.
new text end

new text begin Subd. 2. new text end

new text begin Grants to organizations or individuals. new text end

new text begin The commissioner shall solicit
grant applications from individuals and organizations for projects located in urban
agriculture development zones in eligible cities. The commissioner shall rank applications
based on the project's ability to:
new text end

new text begin (1) increase fresh food access, including access to affordable organic foods,
to improve both local and regional food security through the development of urban
agriculture projects; and
new text end

new text begin (2) reduce or eliminate health disparities related to food access.
new text end

new text begin Subd. 3. new text end

new text begin Grants to cities. new text end

new text begin The commissioner shall solicit grant applications from
eligible cities that have adopted a zoning ordinance that designates urban agriculture
development zones. Applicant cities must certify to the commissioner that the ordinance
will remain in effect for at least ten years and must repay any grant funds received under
this section if the ordinance is repealed or amended to prohibit urban agriculture during
the ten-year period.
new text end

Sec. 2.

Minnesota Statutes 2014, section 17.115, subdivision 2, is amended to read:

Subd. 2.

Loan criteria.

(a) The shared savings loan program deleted text begin must deleted text end new text begin may new text end provide
loans for purchase of new or used machinery new text begin , urban agriculture development, new text end and
installation of equipment for projects that make environmental improvements and enhance
farm profitability. Eligible loan uses do not include seed, fertilizer, or fuel.

(b) Loans may not exceed $40,000 per individual new text begin or organization new text end applying for a loan
and may not exceed $160,000 for loans to four or more individuals new text begin or to two or more
organizations new text end on joint projects. The loan repayment period may be up to seven years as
determined by project cost and energy savings. The interest rate on the loans must not
exceed six percent.

(c) Loans may only be made to residents new text begin and organizations new text end of this state engaged in
farming.

Sec. 3.

Minnesota Statutes 2014, section 17.115, subdivision 3, is amended to read:

Subd. 3.

Awarding of loans.

(a) Applications for loans must be made to the
commissioner on forms prescribed by the commissioner.

(b) The applications must be reviewed, ranked, and recommended by a loan review
panel appointed by the commissioner. The loan review panel shall consist of two
lenders with agricultural experience, two resident farmers of the state using sustainable
agriculture methods, two resident farmers of the state using organic agriculture methods,
a farm management specialist, new text begin two residents of the state practicing urban agriculture, new text end a
representative from a postsecondary education institution, and a chair from the department.

(c) The loan review panel shall rank applications according to the following criteria:

(1) realize savings to the cost of agricultural production;

(2) reduce or make more efficient use of energy or inputs;

(3) increase overall farm profitability; and

(4) result in environmental benefits.

(d) A loan application must show that the loan can be repaid by the applicant.

(e) The commissioner must consider the recommendations of the loan review panel
and may make loans for eligible projects.

Sec. 4. new text begin APPROPRIATION.
new text end

new text begin $3,000,000 in fiscal year 2016 and $3,000,000 in fiscal year 2017 are appropriated
from the general fund to the commissioner of agriculture for urban agriculture
development grants under section 1. Between July 1 and January 1 in each fiscal
year, $1,000,000 is reserved for grants to cities, $1,000,000 is reserved for grants to
organizations, and $1,000,000 is reserved for grants to individuals. From January 2 to
June 30 in each fiscal year, the commissioner may award remaining funds to any eligible
city, organization, or individual.
new text end