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HF 1120

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/27/2017 11:41am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to agriculture; establishing a shrimp production incentive program;
appropriating money; requiring reports; proposing coding for new law in Minnesota
Statutes, chapter 41A.

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

Section 1.

new text begin [41A.21] SHRIMP PRODUCTION INCENTIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
new text end

new text begin (b) "Commissioner" means the commissioner of agriculture.
new text end

new text begin (c) "Feed" means pelletized material produced from agricultural sources.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) A facility eligible for payment under this section must acquire
at least 80 percent of feed from Minnesota. The facility must be located in Minnesota, must
begin production at a specific location by June 30, 2025, and must not begin production
before July 1, 2019. Eligible facilities include existing companies and facilities that are
adding shrimp production capacity, or retrofitting existing capacity, as well as new companies
and facilities. Eligible shrimp production facilities must produce at least 25,000 pounds of
shrimp each quarter.
new text end

new text begin (b) No payments shall be made for shrimp production that occurs after June 30, 2030,
for those eligible producers under paragraph (a).
new text end

new text begin (c) An eligible producer of shrimp shall not transfer the producer's eligibility for payments
under this section to a facility at a different location.
new text end

new text begin (d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.
new text end

new text begin Subd. 3. new text end

new text begin Payment amounts; limits. new text end

new text begin (a) The commissioner shall make payments to
eligible producers of shrimp. The amount of the payment for each eligible producer's
quarterly production is 69 cents per pound of shrimp produced at a specific location for five
years after the start of production.
new text end

new text begin (b) Total payments under this section to an eligible shrimp producer in a quarter may
not exceed the amount necessary for 2,000,000 pounds of shrimp produced. Total payments
under this section to all eligible shrimp producers in a quarter may not exceed $1,250,000.
If the total amount for which all shrimp producers are eligible in a quarter exceeds the
amount available for payments, the commissioner shall award payments on a pro rata basis
within the limits of available funding.
new text end

new text begin (c) For purposes of this section, an entity that holds a controlling interest in more than
one shrimp facility is considered a single eligible producer.
new text end

new text begin Subd. 4. new text end

new text begin Claims. new text end

new text begin (a) By the last day of October, January, April, and July, each eligible
shrimp producer shall file a claim for payment for shrimp production during the preceding
three calendar months. An eligible shrimp producer that files a claim under this subdivision
shall include a statement of the eligible producer's total pounds of shrimp produced during
the quarter covered by the claim. For each claim and statement of total pounds of shrimp
filed under this subdivision, the pounds of shrimp produced must be examined by a certified
public accounting firm with a valid permit to practice under chapter 326A, in accordance
with Statements on Standards for Attestation Engagements established by the American
Institute of Certified Public Accountants.
new text end

new text begin (b) The commissioner must issue payments by November 15, February 15, May 15, and
August 15. A separate payment must be made for each claim filed.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin A sum sufficient to make the payments required by this section,
not to exceed $5,000,000 in a fiscal year, is annually appropriated from the general fund to
the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin By January 15 each year, the commissioner shall report on the program
under this section to the legislative committees with jurisdiction over agricultural policy
and finance. The report shall include information on production and incentive expenditures
under the program.
new text end