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SF 780

3rd Engrossment - 90th Legislature (2017 - 2018) Posted on 04/21/2017 08:45am

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Current Version - 3rd Engrossment

A bill for an act
relating to state government; appropriating money for agriculture and housing
programs; making changes to programs and policy; establishing a shrimp production
incentive program; establishing a wolf-livestock conflict prevention pilot program;
requiring reports;amending Minnesota Statutes 2016, sections 17.119, subdivisions
1, 2; 18.79, subdivision 18; 18B.03, by adding a subdivision; 41A.20, subdivision
2; 299F.01, by adding a subdivision; 327C.01, by adding a subdivision; 462A.2035;
proposing coding for new law in Minnesota Statutes, chapters 41A; 327C; repealing
Minnesota Statutes 2016, section 41A.20, subdivision 6.

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

ARTICLE 1

AGRICULTURE AND RURAL DEVELOPMENT

Section 1. AGRICULTURE APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2018" and "2019" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
is fiscal years 2018 and 2019.

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. DEPARTMENT OF AGRICULTURE

Subdivision 1.

Total Appropriation

$
50,720,000
$
50,174,000
Appropriations by Fund
2018
2019
General
50,332,000
49,786,000
Remediation
388,000
388,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.

Protection Services

17,041,000
17,041,000
Appropriations by Fund
2018
2019
General
16,653,000
16,653,000
Remediation
388,000
388,000

(a) $25,000 the first year and $25,000 the
second year are to develop and maintain
cottage food license exemption outreach and
training materials.

(b) $75,000 the first year and $75,000 the
second year are to coordinate the correctional
facility vocational training program.

(c) $388,000 the first year and $388,000 the
second year are from the remediation fund for
administrative funding for the voluntary
cleanup program.

(d) $175,000 the first year and $175,000 the
second year are for compensation for
destroyed or crippled animals under Minnesota
Statutes, section 3.737. This appropriation
may be spent to compensate for animals that
were destroyed or crippled during fiscal year
2017. If the amount in the first year is
insufficient, the amount in the second year is
available in the first year.

(e) $125,000 the first year and $125,000 the
second year are for compensation for crop
damage under Minnesota Statutes, section
3.7371. If the amount in the first year is
insufficient, the amount in the second year is
available in the first year.

If the commissioner determines that claims
made under Minnesota Statutes, section 3.737
or 3.7371, are unusually high, amounts
appropriated for either program may be
transferred to the appropriation for the other
program.

(f) $300,000 the first year and $300,000 the
second year are for deposit in the noxious
weed and invasive plant species assistance
account established under Minnesota Statutes,
section 18.89, to be used to implement the
noxious weed grant program under Minnesota
Statutes, section 18.90, with preference given
to local units of government responding to
palmer amaranth or other weeds on the
eradicate list. This is a onetime appropriation.

(g) $150,000 the first year and $150,000 the
second year are for wolf-livestock conflict
prevention grants under section 11. The
commissioner must submit a report to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture policy and finance by January 15,
2020, on the outcomes of the wolf-livestock
conflict prevention grants and whether
livestock compensation claims were reduced
in the areas that grants were awarded. This is
a onetime appropriation.

Subd. 3.

Agricultural Marketing and
Development

4,096,000
3,996,000

(a) The commissioner must provide outreach
to urban farmers regarding the department's
financial and technical assistance programs
and must assist urban farmers in applying for
assistance.

(b) $186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants for
Minnesota grown promotion under Minnesota
Statutes, section 17.102. Grants may be made
for one year. Notwithstanding Minnesota
Statutes, section 16A.28, the appropriations
encumbered under contract on or before June
30, 2019, for Minnesota grown grants in this
paragraph are available until June 30, 2021.

(c) $634,000 the first year and $634,000 the
second year are for continuation of the dairy
development and profitability enhancement
and dairy business planning grant programs
established under Laws 1997, chapter 216,
section 7, subdivision 2, and Laws 2001, First
Special Session chapter 2, section 9,
subdivision 2. The commissioner may allocate
the available sums among permissible
activities, including efforts to improve the
quality of milk produced in the state, in the
proportions that the commissioner deems most
beneficial to Minnesota's dairy farmers. The
commissioner must submit a detailed
accomplishment report and a work plan
detailing future plans for, and anticipated
accomplishments from, expenditures under
this program to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture policy and finance
on or before the start of each fiscal year. If
significant changes are made to the plans in
the course of the year, the commissioner must
notify the chairs and ranking minority
members.

(d) $100,000 the first year is for grants to
ethnic minority chambers of commerce to
connect immigrants and new American
citizens to farming opportunities in this state.
This is a onetime appropriation and is
available until June 30, 2019.

(e) The commissioner may use funds
appropriated in this subdivision for annual
cost-share payments to resident farmers or
entities that sell, process, or package
agricultural products in this state for the costs
of organic certification. The commissioner
may allocate these funds for assistance for
persons transitioning from conventional to
organic agriculture.

Subd. 4.

Agriculture, Bioenergy, and Bioproduct
Advancement

21,860,000
21,860,000

(a) $8,500,000 the first year and $8,500,000
the second year are for transfer to the
agriculture research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. Of
these amounts, at least $600,000 each year is
for the Minnesota Agricultural Experiment
Station's Agriculture Rapid Response Fund
under Minnesota Statutes, section 41A.14,
subdivision 1, clause (2). Of the amount
appropriated in this paragraph, for fiscal years
2018 and 2019 only, $1,000,000 each year is
for transfer to the Board of Regents of the
University of Minnesota for research on avian
influenza, including prevention measures that
can be taken. Of the amount appropriated in
this paragraph, $2,000,000 each year is for
grants to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm Business
Management challenge grants. The
commissioner shall transfer the remaining
grant funds in this appropriation each year to
the Board of Regents of the University of
Minnesota for purposes of Minnesota Statutes,
section 41A.14. The base budget for
agriculture research, extension, and technology
transfer for fiscal year 2020 and later is
$7,700,000 each fiscal year.

To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14,
subdivision 1, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to 4.5 percent of this appropriation for
costs incurred to administer the program. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

(b) $350,000 the first year and $350,000 the
second year are for grants to the Board of
Regents of the University of Minnesota for
potato breeding.

(c) $450,000 the first year and $450,000 the
second year are for grants to the Board of
Regents of the University of Minnesota for
the cultivated wild rice breeding project at the
North Central Research and Outreach Center.

(d) $12,535,000 the first year and $12,535,000
the second year are for the agricultural growth,
research, and innovation program in
Minnesota Statutes, section 41A.12. Grants
may be awarded in the following areas:
developing new markets for Minnesota
farmers; developing urban agriculture;
beginning or expanding livestock operations;
assisting value-added agricultural businesses
to begin or expand; development or expansion
of food hubs and other community-based food
distribution systems; expanding or improving
biofuels infrastructure at the retail and
distribution level; farm business management
scholarships; and research on bioenergy,
biobased content, or biobased formulated
products.

Of the amount appropriated for the agricultural
growth, research, and innovation program in
Minnesota Statutes, section 41A.12:

(1) $1,000,000 the first year and $1,000,000
the second year are for distribution in equal
amounts to each of the state's county fairs to
preserve and promote Minnesota agriculture;

(2) $1,500,000 the first year and $1,500,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18;

(3) $3,000,000 the first year and $3,000,000
the second year are for livestock investment
grants under Minnesota Statutes, section
17.118;

(4) $3,000,000 the first year and $3,000,000
the second year are for value-added agriculture
grants;

(5) $1,000,000 the first year and $1,000,000
the second year are for grants to install
equipment necessary to store or dispense
biofuels to the public in order to meet the
biofuel requirement goals established under
Minnesota Statutes, section 239.7911; and

(6) $350,000 the first year and $350,000 the
second year are for grants to expand
Minnesota agriculture, including
Minnesota-grown hemp, to new markets.

For value-added agriculture grants under
clause (4), the commissioner may award up
to two grants of up to $750,000 per grant for
new or expanding livestock product processing
facilities or dairy product processing facilities
that provide significant economic impact to
the region. The remaining value-added
agriculture grants are for awards between
$1,000 and $200,000 per grant. The
appropriations in clauses (3), (4), (5), and (6),
are onetime. If the appropriation for incentive
payments in clause (2) exceeds the total
amount for which all producers are eligible in
a fiscal year, the balance of the appropriation
is available for the agricultural growth,
research, and innovation program. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered under
contract before June 30, 2019, under the
agricultural growth, research, and innovation
program in Minnesota Statutes, section
41A.12, are available until June 30, 2021. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

The base budget for the agricultural growth,
research, and innovation program for fiscal
year 2020 and later is $14,166,000 each fiscal
year. Of this amount:

(1) $1,000,000 each year is for distribution in
equal amounts to each of the state's county
fairs to preserve and promote Minnesota
agriculture;

(2) $1,500,000 each year is for incentive
payments under Minnesota Statutes, sections
41A.16, 41A.17, and 41A.18;

(3) $3,000,000 each year is for siding
production incentive payments under
Minnesota Statutes, section 41A.20; and

(4) $5,000,000 each year is for shrimp
production incentive payments under
Minnesota Statutes, section 41A.21.

(e) $25,000 the first year and $25,000 the
second year are for grants to the Southern
Minnesota Initiative Foundation to promote
local foods through an annual event that raises
public awareness of local foods and connects
local food producers and processors with
potential buyers.

Subd. 5.

Administration and Financial Assistance

7,723,000
7,277,000

(a) $474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
shall be disbursed no later than July 15 of each
year. These payments are the amount of aid
from the state for an annual fair held in the
previous calendar year.

(b) $1,000 the first year and $1,000 the second
year are for grants to the Minnesota State
Poultry Association.

(c) $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association.

(d) $47,000 the first year and $47,000 the
second year are for the Northern Crops
Institute. These appropriations may be spent
to purchase equipment.

(e) $200,000 the first year and $200,000 the
second year are for farm advocate services.

(f) $17,000 the first year and $17,000 the
second year are for grants to the Minnesota
Horticultural Society.

(g) $108,000 the first year and $108,000 the
second year are for annual grants to the
Minnesota Turf Seed Council for basic and
applied research on: (1) the improved
production of forage and turf seed related to
new and improved varieties; and (2) native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic or
applied research. Any unencumbered balance
does not cancel at the end of the first year and
is available for the second year. This is a
onetime appropriation.

(h) $113,000 the first year and $113,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges and
Universities for statewide mental health
counseling support to farm families and
business operators. South Central College shall
serve as the fiscal agent.

(i) $550,000 the first year and $550,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Feeding America food banks for the purchase
of milk for distribution to Minnesota's food
shelves and other charitable organizations that
are eligible to receive food from the food
banks. Milk purchased under the grants must
be acquired from Minnesota milk processors
and based on low-cost bids. The milk must be
allocated to each Feeding America food bank
serving Minnesota according to the formula
used in the distribution of United States
Department of Agriculture commodities under
The Emergency Food Assistance Program
(TEFAP). Second Harvest Heartland must
submit quarterly reports to the commissioner
on forms prescribed by the commissioner. The
reports must include, but are not limited to,
information on the expenditure of funds, the
amount of milk purchased, and the
organizations to which the milk was
distributed. Second Harvest Heartland may
enter into contracts or agreements with food
banks for shared funding or reimbursement of
the direct purchase of milk. Each food bank
receiving money from this appropriation may
use up to two percent of the grant for
administrative expenses. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.

(j) $1,100,000 the first year and $1,100,000
the second year are for grants to Second
Harvest Heartland on behalf of the six Feeding
America food banks that serve Minnesota to
compensate agricultural producers and
processors for costs incurred to harvest and
package for transfer surplus fruits, vegetables,
and other agricultural commodities that would
otherwise go unharvested, be discarded, or
sold in a secondary market. Surplus
commodities must be distributed statewide to
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Surplus food acquired under this
appropriation must be from Minnesota
producers and processors. Second Harvest
Heartland must report when required by, and
in the form prescribed by, the commissioner.
Second Harvest Heartland may use up to 11
percent of any grant received for
administrative expenses, and up to four percent
of the grant for transportation expenses. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

(k) $150,000 the first year and $150,000 the
second year are for grants to the Center for
Rural Policy and Development.

(l) $235,000 the first year and $235,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.

(m) $600,000 the first year and $600,000 the
second year are for grants to the Board of
Regents of the University of Minnesota to
develop, in consultation with the
commissioner of agriculture and the Board of
Animal Health, a software tool or application
through the Veterinary Diagnostic Laboratory
that empowers veterinarians and producers to
understand the movement of unique pathogen
strains in livestock and poultry production
systems, monitor antibiotic resistance, and
implement effective biosecurity measures that
promote animal health and limit production
losses. This is a onetime appropriation.

(n) $150,000 the first year is for tractor
rollover protection grants under Minnesota
Statutes, section 17.119. This is a onetime
appropriation and is available until June 30,
2019.

(o) $296,000 the first year is for a grant to the
Board of Regents of the University of
Minnesota to fund the Forever Green
Agriculture initiative to protect the state's
natural resources while increasing the
efficiency, profitability, and productivity of
Minnesota farmers by incorporating perennial
and winter annual crops into existing
agricultural practices. This is a onetime
appropriation and is available until June 30,
2021.

By January 15, 2018, the commissioner shall
submit a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over agricultural
policy and finance with a list of inspections
the department conducts at more frequent
intervals than federal law requires, an
explanation of why the additional inspections
are necessary, and provide recommendations
for eliminating any unnecessary inspections.

Sec. 3. BOARD OF ANIMAL HEALTH

$
5,384,000
$
5,384,000

Sec. 4. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE

$
3,793,000
$
3,793,000

Sec. 5.

Minnesota Statutes 2016, section 17.119, subdivision 1, is amended to read:


Subdivision 1.

Grants; eligibility.

(a) The commissioner must award cost-share grants
to Minnesota farmers who retrofit eligible tractors and Minnesota schools that retrofit eligible
tractors with eligible rollover protective structures.

(b) Grants for farmers are limited to 70 percent of the farmer's or school's documented
cost to purchase, ship, and install an eligible rollover protective structure. The commissioner
must increase the a farmer's grant award amount over the 70 percent grant limitation
requirement if necessary to limit a farmer's or school's cost per tractor to no more than $500.

(c) Schools are eligible for grants that cover the full amount of a school's documented
cost to purchase, ship, and install an eligible rollover protective structure.

(b) (d) A rollover protective structure is eligible if it meets or exceeds SAE International
standard J2194 is certified to appropriate national or international rollover protection structure
standards with a seat belt
.

(c) (e) A tractor is eligible if the tractor was built before 1987.

EFFECTIVE DATE.

This section is effective retroactively from July 1, 2016.

Sec. 6.

Minnesota Statutes 2016, section 17.119, subdivision 2, is amended to read:


Subd. 2.

Promotion; administration.

The commissioner may spend up to 20 six percent
of total program dollars each fiscal year to promote and administer the program to Minnesota
farmers and schools.

Sec. 7.

Minnesota Statutes 2016, section 18.79, subdivision 18, is amended to read:


Subd. 18.

Noxious weed education and notification.

(a) The commissioner shall
disseminate information and conduct educational campaigns with respect to control of
noxious weeds or invasive plants to enhance regulatory compliance and voluntary efforts
to eliminate or manage these plants. The commissioner shall call and attend meetings and
conferences dealing with the subject of noxious weeds. The commissioner shall maintain
on the department's Web site noxious weed management information including but not
limited to the roles and responsibilities of citizens and government entities under sections
18.76 to 18.91 and specific guidance as to whom a person should contact to report a noxious
weed issue.

(b) The commissioner shall post notice on the commissioner's Web site and in appropriate
agricultural media when a weed on the eradicate list is confirmed for the first time in a
county. The commissioner shall work with stakeholders, including the Board of Water and
Soil Resources, the commissioner of natural resources, soil and water conservation districts,
University of Minnesota Extension, county agricultural inspectors, and local weed inspectors
to eradicate the weed in Minnesota.

Sec. 8.

Minnesota Statutes 2016, section 18B.03, is amended by adding a subdivision to
read:


Subd. 5.

Label compliance.

Unless explicitly required by the FIFRA, the commissioner
must not require an applicator to demonstrate label compliance or need prior to applying a
pesticide.

Sec. 9.

Minnesota Statutes 2016, section 41A.20, subdivision 2, is amended to read:


Subd. 2.

Eligibility.

(a) A facility eligible for payment under this section must source
at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or less from
the state border, raw materials may be sourced from within a 100-mile radius. Raw materials
must be from forest resources. The facility must be located in Minnesota, must begin
production at a specific location by June 30, 2025, and must not begin operating before July
1, 2017 2019. Eligible facilities include existing companies and facilities that are adding
siding production capacity, or retrofitting existing capacity, as well as new companies and
facilities. Eligible siding production facilities must produce at least 200,000,000 siding
square feet on a 3/8 inch nominal basis of siding each year.

(b) No payments shall be made for siding production that occurs after June 30, 2035,
for those eligible producers under paragraph (a).

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

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

Sec. 10.

[41A.21] SHRIMP PRODUCTION INCENTIVE.

Subdivision 1.

Definitions.

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

(b) "Commissioner" means the commissioner of agriculture.

(c) "Feed" means pelletized material produced from agricultural sources.

Subd. 2.

Eligibility.

(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.

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

(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.

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

Subd. 3.

Payment amounts; limits.

(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.

(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.

(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.

Subd. 4.

Claims.

(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.

(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.

Subd. 5.

Report.

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.

Sec. 11. WOLF-LIVESTOCK CONFLICT PREVENTION PILOT PROGRAM.

(a) The commissioner of agriculture may award grants to livestock producers to prevent
wolf-livestock conflicts. Livestock producers located in Minnesota are eligible to apply for
reimbursement for the cost of practices to prevent wolf-livestock conflicts. The commissioner
may establish a cap on the amount a recipient may receive annually.

(b) To be eligible for the grant under this section, a livestock producer must raise livestock
within Minnesota's wolf range or on property determined by the commissioner to be affected
by wolf-livestock conflicts.

(c) Eligible wolf-livestock conflict prevention activities include, but are not limited to:

(1) the purchase of guard animals;

(2) veterinary costs for guard animals;

(3) the installation of wolf barriers; wolf barriers may include pens, fladry, and fencing;

(4) the installation of wolf-deterring lights and alarms; and

(5) calving or lambing shelters.

(d) Eligible grant recipients must:

(1) make a good-faith effort to avoid wolf-livestock conflicts;

(2) make a good-faith effort to care for guard animals paid for under this section;

(3) retain proper documentation of expenses;

(4) report annually to the commissioner on the effectiveness of the nonlethal methods
employed; and

(5) allow follow-up evaluation and monitoring by the commissioner.

(e) Grant recipients shall continue to be eligible for depredation payments under
Minnesota Statutes, section 3.737.

Sec. 12. REPEALER.

Minnesota Statutes 2016, section 41A.20, subdivision 6, is repealed.

ARTICLE 2

HOUSING

Section 1. HOUSING APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2018" and "2019" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
is fiscal years 2018 and 2019.

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. HOUSING FINANCE AGENCY

Subdivision 1.

Total Appropriation

$
50,798,000
$
50,798,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Unless otherwise specified, this appropriation
is for transfer to the housing development fund
for the programs specified in this section.
Except as otherwise indicated, this transfer is
part of the agency's permanent budget base.

Subd. 2.

Challenge Program

13,525,000
13,525,000

(a) $12,925,000 the first year and $12,925,000
the second year are for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
Of this amount, $1,208,000 each year shall be
made available during the first 11 months of
the fiscal year exclusively for housing projects
for American Indians. Any funds not
committed to housing projects for American
Indians in the first 11 months of the fiscal year
shall be available for any eligible activity
under Minnesota Statutes, section 462A.33.

The appropriation may be used to finance the
construction or replacement of real property
that is located in Melrose affected by the fire
on September 8, 2016.

The commissioner may allocate a portion of
the appropriation for the economic
development and housing challenge program
for assistance in the area included in DR-4290,
as provided in Minnesota Statutes, section
12A.09. The maximum loan amount per
housing structure is $20,000. Within the limits
of available appropriations, the agency may
increase the maximum amount if the cost of
repair or replacement of the residential
property exceeds the total of the maximum
loan amount and any assistance available from
FEMA, other federal government agencies,
including the Small Business Administration,
and private insurance and flood insurance
benefits.

(b)(1) $600,000 each year is for housing in
communities and regions that have: low
housing vacancy rates; cooperatively
developed a plan that identifies current and
future housing needs; evidence of anticipated
job expansion; are located outside the
metropolitan area as defined in Minnesota
Statutes, section 473.121, subdivision 2; and
have a significant portion of area employees
who commute more than 30 miles between
their residence and their employment;

(2) among comparable housing proposals,
preference must be given to proposals that:
include a meaningful contribution from area
employers that reduces the need for deferred
loan or grant funds from state resources; or
provide housing opportunities for an expanded
range of household incomes within a
community or that provide housing
opportunities for a wide range of incomes
within the development; and

(3) Notwithstanding Minnesota Statutes,
section 462A.33, subdivision 5, or other law
to the contrary, this appropriation is not
subject to income limitations for occupants.

Subd. 3.

Housing Trust Fund

11,646,000
11,646,000

This appropriation is for deposit in the housing
trust fund account created under Minnesota
Statutes, section 462A.201, and may be used
for the purposes provided in that section.

Subd. 4.

Rental Assistance for Mentally Ill

4,088,000
4,088,000

This appropriation is for the rental housing
assistance program for persons with a mental
illness or families with an adult member with
a mental illness under Minnesota Statutes,
section 462A.2097. Among comparable
proposals, the agency shall prioritize those
proposals that target, in part, eligible persons
who desire to move to more integrated,
community-based settings.

Subd. 5.

Family Homeless Prevention

8,519,000
8,519,000

This appropriation is for the family homeless
prevention and assistance programs under
Minnesota Statutes, section 462A.204.

Subd. 6.

Home Ownership Assistance Fund

885,000
885,000

This appropriation is for the home ownership
assistance program under Minnesota Statutes,
section 462A.21, subdivision 8. The base
amount for fiscal year 2020 and later is
$1,385,000 each fiscal year.

Subd. 7.

Affordable Rental Investment Fund

4,218,000
4,218,000

(a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b, to finance the acquisition,
rehabilitation, and debt restructuring of
federally assisted rental property and for
making equity take-out loans under Minnesota
Statutes, section 462A.05, subdivision 39.

(b) The owner of federally assisted rental
property must agree to participate in the
applicable federally assisted housing program
and to extend any existing low-income
affordability restrictions on the housing for
the maximum term permitted. The owner must
also enter into an agreement that gives local
units of government, housing and
redevelopment authorities, and nonprofit
housing organizations the right of first refusal
if the rental property is offered for sale.
Priority must be given among comparable
federally assisted rental properties to
properties with the longest remaining term
under an agreement for federal assistance.
Priority must also be given among comparable
rental housing developments to developments
that are or will be owned by local government
units, a housing and redevelopment authority,
or a nonprofit housing organization.

(c) The appropriation also may be used to
finance the acquisition, rehabilitation, and debt
restructuring of existing supportive housing
properties. For purposes of this paragraph,
"supportive housing" means affordable rental
housing with links to services necessary for
individuals, youth, and families with children
to maintain housing stability.

Subd. 8.

Housing Rehabilitation

5,915,000
5,915,000

This appropriation is for the housing
rehabilitation program under Minnesota
Statutes, section 462A.05, subdivision 14. Of
this amount, $2,772,000 each year is for the
rehabilitation of owner-occupied housing and
$3,143,000 each year is for the rehabilitation
of eligible rental housing. In administering a
rehabilitation program for rental housing, the
agency may apply the processes and priorities
adopted for administration of the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.

Subd. 9.

Manufactured Home Park
Infrastructure Grants

500,000
500,000

This appropriation is for manufactured home
park infrastructure grants under Minnesota
Statutes, section 462A.2035, subdivision 1b.
This is a onetime appropriation and is
available until June 30, 2021.

Subd. 10.

Homeownership Education,
Counseling, and Training

857,000
857,000

This appropriation is for the homeownership
education, counseling, and training program
under Minnesota Statutes, section 462A.209.
Build Wealth MN shall be eligible for a grant
under this subdivision.

Subd. 11.

Capacity-Building Grants

645,000
645,000

This appropriation is for nonprofit
capacity-building grants under Minnesota
Statutes, section 462A.21, subdivision 3b. Of
this amount, $125,000 each year is for support
of the Homeless Management Information
System (HMIS).

Sec. 3.

Minnesota Statutes 2016, section 299F.01, is amended by adding a subdivision to
read:


Subd. 4.

Mandatory fire sprinklers prohibited.

(a) The State Building Code, the State
Fire Code, or a political subdivision of the state by code or ordinance, must not require the
installation of fire sprinklers, any fire sprinkler system components, or automatic
fire-extinguishing equipment or devices in any new or existing single-family detached
dwelling unit, two-family dwelling unit, townhome, or accessory structure such as a garage,
covered patio, deck, porch, storage shed, or similar structure.

(b) This subdivision does not affect or limit a requirement for smoke or fire detectors,
alarms, or their components.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

Minnesota Statutes 2016, section 327C.01, is amended by adding a subdivision to
read:


Subd. 13.

Class I manufactured home park.

A "Class I manufactured home park"
means a park that complies with the provisions of section 327C.16.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5.

[327C.16] CLASS I MANUFACTURED HOME PARK.

Subdivision 1.

Qualifications.

(a) To qualify as a Class I manufactured home park, as
defined in section 327C.01, subdivision 12, a park owner, or on-site attendant as an employee
of the manufactured home park, must satisfy 12 hours of qualifying education courses every
three years, as prescribed in this subdivision. Park owners or on-site attendants may begin
accumulating qualifying hours to qualify as a Class I manufactured home park beginning
in 2017.

(b) The qualifying education courses required for classification under this subdivision
must be continuing education courses approved by the Department of Labor and Industry
or the Department of Commerce for:

(1) continuing education in real estate; or

(2) continuing education for residential contractors and manufactured home installers.

(c) The qualifying education courses must include:

(1) two hours on fair housing, approved for real estate licensure or residential contractor
licensure;

(2) one hour on the American with Disabilities Act, approved for real estate licensure
or residential contractor licensure;

(3) four hours on legal compliance related to any of the following: landlord/tenant,
licensing requirements, or home financing under chapters 58, 327, 327B, 327C, and 504B
and Minnesota Rules, chapter 1350 or 4630;

(4) three hours of general education approved for real estate, residential contractors, or
manufactured home installers; and

(5) two hours of HUD-specific manufactured home installer courses as required under
section 327B.041.

(d) If the qualifying owner or employee attendant is no longer the person meeting the
requirements under this subdivision, but did qualify during the current assessment year,
then the manufactured home park shall still qualify for the class rate provided for class 4c
property classified under section 273.13, subdivision 25, paragraph (d), clause (5), item
(iii).

Subd. 2.

Proof of compliance.

(a) A park owner that has met the requirements of
subdivision 1 shall provide an affidavit to its county assessor certifying that the park owner
or on-site manager has complied with subdivision 1 and that the park meets the definition
of a Class I manufactured home park, and is entitled to the property tax classification rate
for Class I manufactured home parks in section 273.13, subdivision 25.

(b) A park owner is required to provide the county assessor notice of any change in
status of the manufactured home park no later than December 15 of the assessment year.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6.

Minnesota Statutes 2016, section 462A.2035, is amended to read:


462A.2035 MANUFACTURED HOME PARK REDEVELOPMENT PROGRAM.

Subdivision 1.

Establishment.

The agency shall establish a manufactured home park
redevelopment program for the purpose of making manufactured home park redevelopment
grants or loans to cities, counties, or community action programs, nonprofit organizations,
and cooperatives created under chapter 308A or 308B
.

Subd. 1a.

Individual assistance grants.

Cities, counties, and community action programs
Eligible recipients
may use individual assistance grants and loans under this program to:

(1) provide current residents of manufactured home parks with buy-out assistance not
to exceed $4,000 per home with preference given to older manufactured homes; and

(2) provide down-payment assistance for the purchase of new and preowned manufactured
homes that comply with the current version of the State Building Code in effect at the time
of the sale, not to exceed $10,000 per home; and.

(3) make improvements in manufactured home parks as requested by the grant recipient.

Subd. 1b.

Park infrastructure grants.

Eligible recipients may use park infrastructure
grants under this program for:

(1) improvements in manufactured home parks; and

(2) infrastructure, including storm shelters and community facilities.

Subd. 2.

Eligibility requirements.

For individual assistance grants under subdivision
1a,
households assisted under this section must have an annual household income at or
below 80 percent of the area median household income. Cities, counties, or community
action programs receiving funds under the program must give preference to households at
or below 50 percent of the area median household income. Participation in the program is
voluntary and no park resident shall be required to participate.

Subd. 3.

Statewide program.

The agency shall attempt to make grants and loans in
approximately equal amounts to applicants outside and within the metropolitan area. Grants
and loans under this section shall be provided in a manner consistent with the agency's
policies and purposes in section 462A.02.

Subd. 4.

Infrastructure repair and replacement fund.

Each recipient receiving a grant
under subdivision 1b shall provide from year-to-year, on a cumulative basis, for adequate
reserve funds to cover the repair and replacement of the private infrastructure systems
serving the community.

Sec. 7. MINNESOTA HOUSING FINANCE AGENCY REPORT.

By February 1, 2018, and February 1, 2019, the Housing Finance Agency shall provide
to the chairs and ranking minority members of the house of representatives and senate
committees with jurisdiction over the agency:

(1) a draft and final version of its affordable housing plan before and after it has been
submitted to the agency board for consideration; and

(2) a report on the actual and anticipated funds available within the Housing Affordability
Fund, or Pool 3, and the actual and anticipated uses of those funds.

APPENDIX

Repealed Minnesota Statutes: S0780-3

41A.20 SIDING PRODUCTION INCENTIVE.

Subd. 6.

Appropriation.

A sum sufficient to make the payments required by this section, not to exceed $3,000,000 in a fiscal year, is annually appropriated from the general fund to the commissioner.

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700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569