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HF 242

as introduced - 92nd Legislature (2021 - 2022) Posted on 01/21/2021 01:01pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to environment; authorizing repair or replacement of subsurface sewage
treatment systems to be financed through the agricultural best management practices
loan program regardless of where in the state the subsurface sewage treatment
system is located; amending Minnesota Statutes 2020, section 17.117, subdivision


Section 1.

Minnesota Statutes 2020, section 17.117, subdivision 4, is amended to read:

Subd. 4.


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

(b) "Agricultural and environmental revolving accounts" means accounts in the
agricultural fund, controlled by the commissioner, which hold funds available to the program.

(c) "Agriculture supply business" means a person, partnership, joint venture, corporation,
limited liability company, association, firm, public service company, or cooperative that
provides materials, equipment, or services to farmers or agriculture-related enterprises.

(d) "Allocation" means the funds awarded to an applicant for implementation of best
management practices through a competitive or noncompetitive application process.

(e) "Applicant" means a local unit of government eligible to participate in this program
that requests an allocation of funds as provided in subdivision 6b.

(f) "Best management practices" has the meaning given in sections 103F.711, subdivision
, and 103H.151, subdivision 2. Best management practices also means other practices,
techniques, and measures that have been demonstrated to the satisfaction of the
commissioner: (1) to prevent or reduce adverse environmental impacts by using the most
effective and practicable means of achieving environmental goals; or (2) to achieve drinking
water quality standards under chapter 103H or under Code of Federal Regulations, title 40,
parts 141 and 143, as amended.

(g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner
applying for a low-interest loan.

(h) "Commissioner" means the commissioner of agriculture, including when the
commissioner is acting in the capacity of chair of the Rural Finance Authority, or the designee
of the commissioner.

(i) "Committed project" means an eligible project scheduled to be implemented at a
future date that has been approved by the local government unit.

(j) "Comprehensive water management plan" means a state-approved and locally adopted
plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331, 103D.401, or

(k) "Cost incurred" means expenses for implementation of a project accrued because
the borrower has agreed to purchase equipment or is obligated to pay for services or materials
already provided as a result of implementing an approved eligible project.

(l) "Farmer" means a person, partnership, joint venture, corporation, limited liability
company, association, firm, public service company, or cooperative that regularly participates
in physical labor or operations management of farming and files a Schedule F as part of
filing United States Internal Revenue Service Form 1040 or indicates farming as the primary
business activity under Schedule C, K, or S, or any other applicable report to the United
States Internal Revenue Service.

(m) "Lender agreement" means an agreement entered into between the commissioner
and a local lender which contains terms and conditions of participation in the program.

(n) "Local government unit" means a county, soil and water conservation district, or an
organization formed for the joint exercise of powers under section 471.59 with the authority
to participate in the program.

(o) "Local lender" means a local government unit as defined in paragraph (n); a local
unit of government with taxing or special assessment authority, such as a watershed district,
a drainage authority, or a township; a state or federally chartered bank; a savings association;
a state or federal credit union; Agribank and its affiliated organizations; or a nonprofit
economic development organization or other financial lending institution approved by the

(p) "Local revolving loan account" means the account held by a local government unit
and a local lender into which principal repayments from borrowers are deposited and new
loans are issued in accordance with the requirements of the program and lender agreements.

(q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.

(r) "Program" means the agriculture best management practices loan program in this

(s) "Project" means one or more components or activities located within Minnesota that
are required by the local government unit to be implemented for satisfactory completion of
an eligible best management practice.

(t) "Rural landowner" meansnew text begin:
new text end

new text begin (1)new text end the owner of record of Minnesota real estate located in an area determined by the
local government unit to be rural after consideration of local land use patterns, zoning
regulations, jurisdictional boundaries, local community definitions, historical uses, and
other pertinent local factorsdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (2) the owner of record of real estate located anywhere in Minnesota if the owner is
seeking a loan under the program to repair or replace a subsurface sewage treatment system
on the owner's real estate.
new text end

(u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph (d),
except as expressly limited in this section.