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Capital IconMinnesota Legislature

HF 2389

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to agriculture; creating an agricultural 
  1.3             processing revolving loan account; providing funding 
  1.4             for a germ and fiber recovery process at an existing 
  1.5             ethanol facility; appropriating money; proposing 
  1.6             coding for new law in Minnesota Statutes, chapter 41B. 
  1.8      Section 1.  [41B.049] [AGRICULTURAL PROCESSING FACILITY 
  1.9   LOAN PROGRAM.] 
  1.11  PROGRAM.] The authority may establish and implement an 
  1.12  agricultural processing facility loan program to provide capital 
  1.13  for agricultural processing facilities.  The program may provide 
  1.14  for secured or unsecured loans, loan participations, and loan 
  1.15  guarantees with respect to real or personal property comprising 
  1.16  all or part of an agricultural processing facility, and the 
  1.17  payment of costs incurred by the authority to establish and 
  1.18  administer the program. 
  1.20  FUND.] There is established in the state treasury an 
  1.21  agricultural processing facility revolving fund.  All repayments 
  1.22  of financial assistance granted under subdivision 1, including 
  1.23  principal and interest, must be deposited into the agricultural 
  1.24  processing facility revolving fund. 
  1.25     Subd. 3.  [REVENUE BONDS.] The authority may issue revenue 
  1.26  bonds to finance the agricultural processing facility loan 
  2.1   program in accordance with sections 41B.08 to 41B.15, 41B.17, 
  2.2   and 41B.18.  Bonds may be refunded by the issuance of refunding 
  2.3   bonds in the manner authorized by chapter 475. 
  2.4      Subd. 4.  [PROGRAM REQUIREMENTS.] The requirements in this 
  2.5   subdivision apply to the agricultural processing facility loan 
  2.6   program. 
  2.7      (a) Individuals, corporations, cooperatives, partnerships, 
  2.8   and joint ventures may participate in the program and are not 
  2.9   required to meet the eligibility requirements of section 41B.03, 
  2.10  subdivision 1. 
  2.11     (b) Program participants may be required to pay reasonable 
  2.12  nonrefundable application fees and origination fees established 
  2.13  by the authority by rule under section 41B.07.  Application and 
  2.14  origination fees received by the authority must be deposited in 
  2.15  the agricultural processing revolving fund. 
  2.16     (c) Total assistance provided to an agricultural processing 
  2.17  facility from appropriated funds must not exceed $7,000,000. 
  2.18     (d) The interest payable on loans and loan participations 
  2.19  made by the authority must, if funded by revenue bond proceeds, 
  2.20  be at a rate not less than the rate on the revenue bonds, and 
  2.21  may be established at a higher rate necessary to pay costs 
  2.22  associated with the issuance of the revenue bonds and a 
  2.23  proportionate share of the cost of administering the program.  
  2.24  The interest payable on loans and loan participations funded 
  2.25  from sources other than revenue bond proceeds must be at a rate 
  2.26  determined by the authority. 
  2.27     Sec. 2.  [APPROPRIATION.] 
  2.28     $7,000,000 is appropriated from the general fund to the 
  2.29  agricultural processing facility revolving fund for a 
  2.30  zero-interest loan to the owner of an existing ethanol facility 
  2.31  within Minnesota to add a germ and fiber recovery process to the 
  2.32  ethanol facility.