HF 2963

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

  1.1                          A bill for an act 
  1.2             relating to agriculture; expanding eligibility for 
  1.3             farm manure digester loans; amending Minnesota 
  1.4             Statutes 2001 Supplement, section 17.115, subdivision 
  1.5             5; proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 41B.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.9   17.115, subdivision 5, is amended to read: 
  1.10     Subd. 5.  [FARM MANURE DIGESTER TECHNOLOGY.] Appropriations 
  1.11  in Laws 1998, chapter 401, section 6, Loans under this 
  1.12  subdivision must be used for revolving loans for demonstration 
  1.13  projects of the design and implementation of farm manure 
  1.14  digester technology.  Notwithstanding the limitations of 
  1.15  subdivision 2, paragraphs paragraph (b) and (c), loans under 
  1.16  this subdivision are no-interest loans in principal amounts not 
  1.17  to exceed $200,000 and may be made to any resident of this state.
  1.18  Loans for one or more projects must be made only after The 
  1.19  commissioner seeks shall seek applications for additional 
  1.20  projects as repayments are made to the revolving account.  Loans 
  1.21  under this program may be used as a match for federal loans or 
  1.22  grants.  Money repaid from loans must be returned to the 
  1.23  revolving fund account for future projects. 
  1.24     Sec. 2.  [41B.0435] [ON-FARM MANURE DIGESTER LOAN PROGRAM.] 
  1.25     Subdivision 1.  [ESTABLISHMENT.] The authority may 
  1.26  establish, adopt rules for, and implement a program to finance 
  2.1   on-farm manure digester systems. 
  2.2      Subd. 2.  [DIRECT LOANS.] Direct loans may be made to 
  2.3   borrowers who meet the requirements of section 41B.03, 
  2.4   subdivision 1, clauses (1) and (2), and who are actively engaged 
  2.5   in farming. 
  2.6      Subd. 3.  [SPECIFICATIONS.] No loan may exceed $200,000.  
  2.7   Each loan must be secured by a mortgage on real property and 
  2.8   such other security as the authority may require. 
  2.9      Subd. 4.  [APPLICATION AND ORIGINATION FEE.] The authority 
  2.10  may impose a reasonable nonrefundable application fee and an 
  2.11  origination fee for each direct loan issued under the on-farm 
  2.12  manure digester loan program.  The initial origination fee is 
  2.13  1.5 percent and the application fee is $50.  The authority may 
  2.14  review the fees annually and make adjustments as necessary.  The 
  2.15  fees must be deposited in the state treasury and credited to an 
  2.16  account in the special revenue fund.  Money in this account is 
  2.17  appropriated to the commissioner for administrative expenses of 
  2.18  the on-farm manure digester loan program. 
  2.19     Subd. 5.  [INTEREST RATE.] The interest rate per annum on a 
  2.20  manure digester loan must be the rate of interest determined by 
  2.21  the authority to be necessary to provide for the timely payment 
  2.22  of principal and interest when due on bonds or other obligations 
  2.23  of the authority issued under chapter 41B to provide financing 
  2.24  for loans made under the on-farm manure digester loan program, 
  2.25  and to provide for reasonable and necessary costs of issuing, 
  2.26  carrying, administering, and securing the bonds or notes and to 
  2.27  pay the costs incurred and to be incurred by the authority in 
  2.28  the implementation of the program.