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Minnesota Legislature

Office of the Revisor of Statutes

SF 2226

3rd Engrossment - 91st Legislature (2019 - 2020) Posted on 05/21/2019 09:06am

KEY: stricken = removed, old language.
underscored = added, new language.
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17.25 17.26 17.27 17.28 17.29 17.30 17.31 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18
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A bill for an act
relating to agriculture; establishing a budget for the Department of Agriculture,
the Board of Animal Health, the Agricultural Utilization Research Institute, and
the Minnesota Housing Finance Agency; modifying programs; amending Minnesota
Statutes 2018, sections 17.041, subdivision 1; 18B.34, subdivision 5; 18C.425,
subdivision 6; 18C.70, subdivision 5; 18C.71, subdivision 4; 18C.80, subdivision
2; 18K.02, subdivision 3; 18K.06; 28A.16; 41A.15, subdivision 10, by adding a
subdivision; 41A.16, subdivisions 1, 2, 4; 41A.17, subdivisions 1, 2, 3; 41A.18,
subdivisions 1, 2, 3; 41B.055, subdivision 4; 116.06, by adding a subdivision;
116.07, subdivisions 7, 7d; 223.16, subdivisions 2a, 4; 223.17, subdivisions 3, 4,
5, 6, by adding subdivisions; 223.177, subdivisions 2, 3, 8; 232.21, by adding
subdivisions; 232.22, subdivisions 3, 4; 232.23, subdivision 3; 232.24, subdivisions
1, 2; 299D.085, by adding a subdivision; 326B.815, subdivision 1; 327.31, by
adding a subdivision; 327B.041; 327C.095, subdivisions 4, 6, 12, 13, by adding
a subdivision; 428A.11, subdivisions 4, 6; 462A.2035, subdivisions 1a, 1b;
462A.209, subdivision 8; 462A.22, subdivision 9; 462A.24; 462A.33, subdivisions
1, 2, 3; 462A.37, subdivision 2; 462A.38, subdivision 1; 474A.02, by adding
subdivisions; 474A.03, subdivision 1; 474A.061, subdivisions 1, 2a, by adding a
subdivision; 474A.091, subdivisions 2, 3; proposing coding for new law in
Minnesota Statutes, chapters 41B; 327.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1. new text beginAGRICULTURE APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this act. The appropriations are from the general fund, or
another named fund, and are available for the fiscal years indicated for each purpose. The
figures "2020" and "2021" used in this act mean that the appropriations listed under them
are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. "The
first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" is
fiscal years 2020 and 2021.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2020
new text end
new text begin 2021
new text end

Sec. 2. new text beginDEPARTMENT OF AGRICULTURE
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 54,704,000
new text end
new text begin $
new text end
new text begin 49,602,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2020
new text end
new text begin 2021
new text end
new text begin General
new text end
new text begin 54,305,000
new text end
new text begin 49,203,000
new text end
new text begin Remediation
new text end
new text begin 399,000
new text end
new text begin 399,000
new text end

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

new text begin Subd. 2. new text end

new text begin Protection Services
new text end

new text begin Appropriations by Fund
new text end
new text begin 2020
new text end
new text begin 2021
new text end
new text begin General
new text end
new text begin 16,878,000
new text end
new text begin 16,878,000
new text end
new text begin Remediation
new text end
new text begin 399,000
new text end
new text begin 399,000
new text end

new text begin (a) $399,000 the first year and $399,000 the
second year are from the remediation fund for
administrative funding for the voluntary
cleanup program.
new text end

new text begin (b) $175,000 the first year and $175,000 the
second year are for compensation for
destroyed or crippled livestock under
Minnesota Statutes, section 3.737. The
appropriation for fiscal year 2020 may be
spent to compensate for livestock that were
destroyed or crippled during fiscal year 2019.
If the amount for fiscal year 2020 is
insufficient, the amount in fiscal year 2021 is
available in fiscal year 2020. The
commissioner may use up to $5,000 each year
to reimburse expenses incurred by university
extension agents to provide fair market values
of destroyed or crippled livestock.
new text end

new text begin (c) $155,000 the first year and $155,000 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. The commissioner
may use up to $30,000 of the appropriation
each year to reimburse expenses incurred by
the commissioner or the commissioner's
approved agent to investigate and resolve
claims.
new text end

new text begin 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.
new text end

new text begin Subd. 3. new text end

new text begin Agricultural Marketing and
Development
new text end

new text begin 3,918,000
new text end
new text begin 3,918,000
new text end

new text begin (a) $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, 2021, for Minnesota grown grants in this
paragraph are available until June 30, 2023.
new text end

new text begin (b) $706,000 the first year and $706,000 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. Of the amount appropriated in
this paragraph, $72,000 each year is onetime.
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.
new text end

new text begin (c) 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.
new text end

new text begin Subd. 4. new text end

new text begin Agriculture, Bioenergy, and Bioproduct
Advancement
new text end

new text begin 26,100,000
new text end
new text begin 21,100,000
new text end

new text begin (a) $9,300,000 the first year and $9,300,000
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:
new text end

new text begin (1) $600,000 the first year and $600,000 the
second year are for the Minnesota Agricultural
Experiment Station's agriculture rapid
response fund under Minnesota Statutes,
section 41A.14, subdivision 1, clause (2);
new text end

new text begin (2) $2,000,000 the first year and $2,000,000
the second year are for grants to the Minnesota
Agriculture Education Leadership Council to
enhance agricultural education with priority
given to Farm Business Management
challenge grants;
new text end

new text begin (3) $350,000 the first year and $350,000 the
second year are for potato breeding;
new text end

new text begin (4) $450,000 the first year and $450,000 the
second year are for the cultivated wild rice
breeding project at the North Central Research
and Outreach Center to include a tenure track
and research associate plant breeder; and
new text end

new text begin (5) $2,500,000 the first year and $2,500,000
the second year are for innovative soybean
processing and research. These appropriations
are onetime.
new text end

new text begin The commissioner shall transfer the remaining
funds in this appropriation each year to the
Board of Regents of the University of
Minnesota for purposes of Minnesota Statutes,
section 41A.14. Included in this amount is
money for research on avian influenza,
including prevention measures that can be
taken.
new text end

new text begin To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14,
subdivision 1, clauses (1) to (5), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to one percent of this appropriation for
costs incurred to administer the program.
new text end

new text begin The base budget for the agriculture research,
education, extension, and technology transfer
account is $9,300,000 for fiscal years 2022
and 2023.
new text end

new text begin (b) $16,775,000 the first year and $11,775,000
the second year are for the agricultural growth,
research, and innovation program in
Minnesota Statutes, section 41A.12. Of these
amounts:
new text end

new text begin (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;
new text end

new text begin (2) $2,500,000 the first year and $2,500,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2021, and the second year appropriation is
available until June 30, 2022. If this
appropriation 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. If the total amount
for which all producers are eligible in a quarter
exceeds the amount available for payments,
the commissioner shall make the payments on
a pro rata basis;
new text end

new text begin (3) $500,000 the first year and $500,000 the
second year are for grants to motor fuel
wholesalers and retail motor fueling station
operators to install the equipment necessary
to store or dispense biofuels to the public to
meet the biofuel requirement goals established
under Minnesota Statutes, section 239.7911;
new text end

new text begin (4) $2,000,000 the first year and $2,000,000
the second year are for livestock investment
grants under Minnesota Statutes, section
17.118;
new text end

new text begin (5) $3,500,000 the first year and $3,500,000
the second year are for value-added grants.
The commissioner may use up to $2,000,000
per year of the funds to award value-added
agriculture grants of between $200,000 and
$1,000,000 per grant for new or expanding
agricultural production or processing facilities
that provide significant economic benefit to
the region;
new text end

new text begin (6) $600,000 the first year and $600,000 the
second year are for Farm Business
Management tuition assistance;
new text end

new text begin (7) $500,000 the first year and $500,000 the
second year are for new market development
grants;
new text end

new text begin (8) $2,000,000 the first year is for the dairy
producer margin coverage premium assistance
program under section 5; and
new text end

new text begin (9) $3,000,000 the first year is for dairy
modernization and innovation grants, and for
buying down interest costs under the dairy
modernization and innovation loan program
under Minnesota Statutes, section 41B.0455.
new text end

new text begin The commissioner may allocate the remaining
amounts each year among the following areas:
developing new markets for Minnesota
farmers by providing more fruits, vegetables,
meat, grain, and dairy for Minnesota school
children; grants for urban youth agricultural
education or urban agriculture community
development; the good food access program
under Minnesota Statutes, section 17.1017;
facilitating the start-up, modernization, or
expansion of other beginning and transitioning
farms including by providing loans under
Minnesota Statutes, section 41B.056; crop
research grants; development or expansion of
food hubs and other alternative
community-based food distribution systems;
and good agricultural practices and good
handling practices certification assistance.
new text end

new text begin The commissioner may use up to 3.5 percent
of this appropriation for costs incurred to
administer the program.
new text end

new text begin The appropriation in paragraph (b), clauses
(8) and (9), is onetime. 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, appropriations encumbered under
contract on or before June 30, 2021, for
agricultural growth, research, and innovation
grants are available until June 30, 2022.
new text end

new text begin The base budget for the agricultural growth,
research, and innovation program is
$14,710,000 for fiscal years 2022 and 2023,
and includes funding for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, 41A.18, and 41A.20.
new text end

new text begin The commissioner must consult with the
commissioner of transportation, the
commissioner of administration, and local
units of government to identify at least ten
parcels of publicly owned land that are suitable
for urban agriculture.
new text end

new text begin (c) $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. These appropriations are
onetime.
new text end

new text begin Subd. 5. new text end

new text begin Administration and Financial
Assistance
new text end

new text begin 7,409,000
new text end
new text begin 7,307,000
new text end

new text begin (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.
new text end

new text begin (b) $2,000 the first year is for a grant to the
Minnesota State Poultry Association. This is
a onetime appropriation, and is available until
June 30, 2021.
new text end

new text begin (c) $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. These are
onetime appropriations.
new text end

new text begin (d) $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association. These are
onetime appropriations.
new text end

new text begin (e) $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. These are onetime
appropriations.
new text end

new text begin (f) $267,000 the first year and $267,000 the
second year are for farm advocate services.
Of the amount appropriated in this paragraph,
$47,000 each year is onetime.
new text end

new text begin (g) $17,000 the first year and $17,000 the
second year are for grants to the Minnesota
Horticultural Society. These are onetime
appropriations.
new text end

new text begin (h) $238,000 the first year and $238,000 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. Of the amount
appropriated in this paragraph, $125,000 each
year is onetime.
new text end

new text begin (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.
new text end

new text begin (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 in the form prescribed
by the commissioner. Second Harvest
Heartland may use up to 15 percent of each
grant for matching administrative and
transportation expenses. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
new text end

new text begin (k) $50,000 the first year and $50,000 the
second year are for grants to the Center for
Rural Policy and Development. These are
onetime appropriations.
new text end

new text begin (l) $250,000 the first year and $250,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.
new text end

new text begin (m) $100,000 the first year is for a grant to
Greater Mankato Growth, Inc. for assistance
to agricultural-related businesses to promote
jobs, innovation, and development of a
synergy. Grant recipients shall report to the
commissioner by February 1 of each year, and
include information on the number of
customers served in each county; the number
of businesses started, stabilized, or expanded;
the number of jobs created and retained; and
business success rates in each county. By April
1 of each year, the commissioner shall report
the information submitted by grant recipients
to the chairs of the standing committees of the
house of representatives and the senate having
jurisdiction over agriculture and rural
development issues. This is a onetime
appropriation.
new text end

new text begin (n) The commissioner shall continue to
increase connections with ethnic minority and
immigrant farmers to farming opportunities
and farming programs throughout the state.
new text end

Sec. 3. new text beginBOARD OF ANIMAL HEALTH
new text end

new text begin $
new text end
new text begin 5,477,000
new text end
new text begin $
new text end
new text begin 5,477,000
new text end

Sec. 4. new text beginAGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
new text end

new text begin $
new text end
new text begin 3,895,000
new text end
new text begin $
new text end
new text begin 3,895,000
new text end

Sec. 5. new text beginDAIRY PRODUCER MARGIN COVERAGE PREMIUM ASSISTANCE
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program. new text end

new text begin The commissioner must administer a dairy producer margin
coverage premium assistance program for premiums paid by Minnesota dairy producers
participating in the federal dairy margin coverage program authorized in the Agriculture
Improvement Act of 2018.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin A dairy producer who participates in the federal dairy margin
coverage program and satisfies the requirements in this section is eligible to receive financial
assistance from the commissioner under this section.
new text end

new text begin Subd. 3. new text end

new text begin Payment rates. new text end

new text begin The commissioner must reimburse an eligible producer at a
rate up to six cents per hundredweight of milk up to the first 5,000,000 pounds of milk
enrolled in the federal dairy margin coverage program. The commissioner shall determine
the payment rate under this subdivision by dividing available funding by the number of
eligible applicants.
new text end

new text begin Subd. 4. new text end

new text begin Procedure. new text end

new text begin A dairy producer must submit a completed application to the
commissioner in a form required by the commissioner. As part of the application, the dairy
producer must submit proof of participation in the federal dairy margin coverage program
in the form of a valid premium payment receipt or other documentation as approved by the
commissioner.
new text end

ARTICLE 2

AGRICULTURE STATUTORY CHANGES

Section 1.

Minnesota Statutes 2018, section 17.041, subdivision 1, is amended to read:


Subdivision 1.

Establishment; appropriation.

An agricultural emergency account is
established in the agricultural fund. Money in the account, including interest, is appropriated
to the commissioner for emergency response deleted text beginand preparednessdeleted text end activities for agricultural
emergencies affecting producers of livestock, poultry, crops, or other agricultural products.
Eligible uses includedeleted text begin, but are not limited to,deleted text endnew text begin agency costs directly attributed to responding
to agricultural emergencies and
new text end purchasing necessary equipment and reimbursing costs
incurred by local units of government that are not eligible for reimbursement from other
sources.

Sec. 2.

Minnesota Statutes 2018, section 18B.34, subdivision 5, is amended to read:


Subd. 5.

Fees.

(a) A person initially applying for or renewing a noncommercial applicator
license must pay a nonrefundable application fee of $50, except an applicant who deleted text beginisdeleted text endnew text begin uses
pesticides in the course of performing official duties as: (1)
new text end a governmentnew text begin employee; (2) a
contractor providing rest area custodial services for the commissioner of transportation;
new text end ornew text begin
(3) a
new text end Conservation Corps Minnesota employee deleted text beginwho uses pesticides in the course of
performing official duties
deleted text end must pay a nonrefundable application fee of $10.

(b) A license renewal application received after March 1 in the year for which the license
is to be issued is subject to a penalty fee of 50 percent of the application fee. The penalty
fee must be paid before the renewal license may be issued.

(c) An application for a duplicate noncommercial applicator license must be accompanied
by a nonrefundable application fee of $10.

Sec. 3.

Minnesota Statutes 2018, section 18C.425, subdivision 6, is amended to read:


Subd. 6.

Payment of inspection fee.

(a) The person who registers and distributes in the
state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall
pay the inspection fee to the commissioner.

(b) The person licensed under section 18C.415 who distributes a fertilizer to a person
not required to be so licensed shall pay the inspection fee to the commissioner, except as
exempted under section 18C.421, subdivision 1, paragraph (b).

(c) The person responsible for payment of the inspection fees for fertilizers, soil
amendments, or plant amendments sold and used in this state must pay an inspection fee of
39 cents per ton, and until June 30, deleted text begin2019deleted text endnew text begin 2029new text end, an additional 40 cents per ton, of fertilizer,
soil amendment, and plant amendment sold or distributed in this state, with a minimum of
$10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner must deposit
all revenue from the additional 40 cents per ton fee in the agricultural fertilizer research and
education account in section 18C.80. Products sold or distributed to manufacturers or
exchanged between them are exempt from the inspection fee imposed by this subdivision
if the products are used exclusively for manufacturing purposes.

(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant
amendment, or soil amendment distribution amounts and inspection fees paid for a period
of three years.

Sec. 4.

Minnesota Statutes 2018, section 18C.70, subdivision 5, is amended to read:


Subd. 5.

Expiration.

This section expires June 30, deleted text begin2020deleted text endnew text begin 2030new text end.

Sec. 5.

Minnesota Statutes 2018, section 18C.71, subdivision 4, is amended to read:


Subd. 4.

Expiration.

This section expires June 30, deleted text begin2020deleted text endnew text begin 2030new text end.

Sec. 6.

Minnesota Statutes 2018, section 18C.80, subdivision 2, is amended to read:


Subd. 2.

Expiration.

This section expires June 30, deleted text begin2020deleted text endnew text begin 2030new text end.

Sec. 7.

Minnesota Statutes 2018, section 18K.02, subdivision 3, is amended to read:


Subd. 3.

Industrial hemp.

"Industrial hemp" means the plant Cannabis sativa L. and
any part of the plant, whether growing or not, new text beginincluding the plant's seeds, and all the plant's
derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether
growing or not,
new text endwith a delta-9 tetrahydrocannabinol concentration of not more than 0.3
percent on a dry weight basis. Industrial hemp is not marijuana as defined in section 152.01,
subdivision 9
.

Sec. 8.

Minnesota Statutes 2018, section 18K.06, is amended to read:


18K.06 RULEMAKING.

(a) The commissioner shall adopt rules governing the production, testing, and licensing
of industrial hemp.

(b) Rules adopted under paragraph (a) must include, but not be limited to, provisions
governing:

(1) the supervision and inspection of industrial hemp during its growth and harvest;

(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;

(3) the use of background check results required under section 18K.04 to approve or
deny a license application; and

(4) any other provision or procedure necessary to carry out the purposes of this chapter.

(c) Rules issued under this section must be consistent with federal law regarding the
production, distribution, and sale of industrial hemp.

new text begin (d) After consulting with stakeholders, the commissioner may use the expedited
rulemaking process in section 14.389 to adopt the rules required under this section that are
required to conform to the Agriculture Improvement Act of 2018, Public Law 115-1072,
and federal rules authorized under that act. This paragraph expires June 30, 2020.
new text end

Sec. 9.

Minnesota Statutes 2018, section 28A.16, is amended to read:


28A.16 PERSONS SELLING LIQUOR.

new text begin (a) new text endThe provisions of the Minnesota consolidated food licensing law, sections 28A.01
to 28A.16 and acts amendatory thereto, shall not apply to persons licensed to sell 3.2 percent
malt liquor "on-sale" as provided in section 340A.403, or to persons licensed to sell
intoxicating liquors "on-sale" or "off-sale" as provided in sections 340A.404 to 340A.407,
provided that these persons sell only ice manufactured and packaged by another, or bottled
or canned soft drinks and prepacked candy at retailnew text begin, or to persons licensed to sell intoxicating
liquors at wholesale to retailers as provided in section 340A.301
new text end.

new text begin (b) When an exclusive liquor store is not exempt under paragraph (a), the commissioner
must exclude all gross sales of off-sale alcoholic beverages by the exclusive liquor store
when determining the applicable license fee under section 28A.08, subdivision 3.
new text end

new text begin (c) For purposes of this section, "exclusive liquor store," "alcoholic beverage,"
"intoxicating liquor," and "wholesaler" have the meanings given in section 340A.101.
new text end

Sec. 10.

Minnesota Statutes 2018, section 41A.15, is amended by adding a subdivision to
read:


new text begin Subd. 2e. new text end

new text begin Biomass. new text end

new text begin "Biomass" means any organic matter that is available on a renewable
or recurring basis, including agricultural crops and trees; wood and wood waste and residues;
plants including aquatic plants, grasses, residues, and fibers; animal waste; and the organic
portion of solid wastes.
new text end

Sec. 11.

Minnesota Statutes 2018, section 41A.15, subdivision 10, is amended to read:


Subd. 10.

Renewable chemical.

"Renewable chemical" means a chemical deleted text beginwith biobased
content.
deleted text endnew text begin, polymer, monomer, plastic, or composite material that is entirely produced from
biomass.
new text end

Sec. 12.

Minnesota Statutes 2018, section 41A.16, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source new text beginfrom Minnesota new text endat least 80 percent deleted text beginraw materials from Minnesota.deleted text endnew text begin of the biomass
used to produce an advanced biofuel, except that,
new text end if a facility is sited 50 miles or less from
the state border, deleted text beginraw materialsdeleted text endnew text begin biomass used to produce an advanced biofuelnew text end may be sourced
from new text beginoutside of Minnesota, but only if at least 80 percent of the biomass is sourced from
new text end within a 100-mile radiusnew text begin of the facility or from within Minnesotanew text end. deleted text beginRaw materials must be
from agricultural or forestry sources or from solid waste.
deleted text end The facility must be located in
Minnesota, must begin production at a specific location by June 30, 2025, and must not
begin operating above 23,750 MMbtu of quarterly new text beginadvanced new text endbiofuel production before July
1, 2015. Eligible facilities include existing companies and facilities that are adding advanced
biofuel production capacity, or retrofitting existing capacity, as well as new companies and
facilities. Production of conventional corn ethanol and conventional biodiesel is not eligible.
Eligible advanced biofuel facilities must produce at least deleted text begin23,750deleted text endnew text begin 1,500new text end MMbtu of new text beginadvanced
new text end biofuel quarterly.

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

(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility
for payments under this section to an advanced biofuel 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.

(e) Renewable chemical production for which payment has been received under section
41A.17, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.

(f) Biobutanol is eligible under this section.

Sec. 13.

Minnesota Statutes 2018, section 41A.16, subdivision 2, is amended to read:


Subd. 2.

Payment amounts; limits.

(a) The commissioner shall make payments to
eligible producers of advanced biofuel. The amount of the payment for each eligible
producer's annual production is $2.1053 per MMbtu for advanced biofuel production from
cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar deleted text beginordeleted text endnew text begin,new text end
starchnew text begin, oil, or animal fatnew text end at a specific location for ten years after the start of production.

(b) Total payments under this section to an eligible biofuel producer in a fiscal year may
not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. Total payments
under this section to all eligible biofuel producers in a fiscal year may not exceed the amount
necessary for 17,100,000 MMbtu of biofuel production. deleted text beginThe commissioner shall award
payments on a first-come, first-served basis within the limits of available funding.
deleted text end

(c) For purposes of this section, an entity that holds a controlling interest in more than
one advanced biofuel facility is considered a single eligible producer.

Sec. 14.

Minnesota Statutes 2018, section 41A.16, subdivision 4, is amended to read:


Subd. 4.

Cellulosic forestry biomass requirements.

All forestry-derived cellulosic
biomassnew text begin used for advanced biofuel productionnew text end must be produced using Minnesota deleted text beginstatedeleted text endnew text begin
forest
new text end biomass harvesting guidelines or the equivalent. All new text begincellulosic new text endbiomass from brushlands
must be produced using Minnesota brushland deleted text beginharvestingdeleted text end biomass deleted text beginharvestdeleted text endnew text begin harvestingnew text end
guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from land
parcels greater than 160 acres must be certified by the Forest Stewardship Council, new text beginthe
new text end Sustainable Forestry Initiative, ornew text begin thenew text end American Tree Farm System. Uncertified land from
parcels of 160 acres or less and federal land must be harvested by a logger who has completed
training for biomass harvesting from the Minnesota logger education program or the
equivalent and have a forest deleted text beginstewardshipdeleted text end new text beginmanagement new text endplannew text begin, as defined in section 290C.02,
subdivision 7, or its equivalent
new text end.

Sec. 15.

Minnesota Statutes 2018, section 41A.17, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this deleted text beginprogramdeleted text endnew text begin sectionnew text end
must source new text beginfrom Minnesota new text endat least 80 percent deleted text beginbiobased content from Minnesota.deleted text endnew text begin of the
biomass used to produce a renewable chemical, except that,
new text end if a facility is sited 50 miles or
less from the state border, deleted text beginbiobased content mustdeleted text end new text beginbiomass used to produce a renewable
chemical may
new text endbe sourced from new text beginoutside of Minnesota, but only if at least 80 percent of the
biomass is sourced from
new text endwithin a 100-mile radiusnew text begin of the facility or from within Minnesotanew text end.
deleted text begin Biobased content must be from agricultural or forestry sources or from solid waste.deleted text end The
facility must be located in Minnesota, must begin production at a specific location by June
30, 2025, and must not begin production of deleted text begin750,000deleted text endnew text begin 250,000new text end pounds of chemicals quarterly
before January 1, 2015. Eligible facilities include existing companies and facilities that are
adding production capacity, or retrofitting existing capacity, as well as new companies and
facilities. Eligible renewable chemical facilities must produce at least deleted text begin750,000deleted text endnew text begin 250,000new text end
pounds of renewable chemicals quarterly. Renewable chemicals produced through processes
that are fully commercial before January 1, 2000, are not eligible.

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

(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility
for payments under this section to a renewable chemical 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.

(e) Advanced biofuel production for which payment has been received under section
41A.16, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.

Sec. 16.

Minnesota Statutes 2018, section 41A.17, subdivision 2, is amended to read:


Subd. 2.

Payment amounts; bonus; limits.

(a) The commissioner shall make payments
to eligible producers of renewable chemicals located in the state. The amount of the payment
for each producer's annual production is $0.03 per pound of sugar-derived renewable
chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of cellulosic-derived
renewable chemical produced at a specific location for ten years after the start of production.

(b) An eligible facility producing renewable chemicals using agricultural cellulosic
biomass is eligible for a 20 percent bonus payment for each pound produced from agricultural
biomass that is derived from perennial crop or cover crop biomass.

(c) Total payments under this section to an eligible renewable chemical producer in a
fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable
chemical production. Total payments under this section to all eligible renewable chemical
producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
renewable chemical production. deleted text beginThe commissioner shall award payments on a first-come,
first-served basis within the limits of available funding.
deleted text end

new text begin (d) An eligible facility may blend renewable chemicals with other chemicals that are
not renewable chemicals, but only the percentage attributable to renewable chemicals in
the blended product is eligible to receive payment.
new text end

deleted text begin (d)deleted text endnew text begin (e)new text end For purposes of this section, an entity that holds a controlling interest in more
than one renewable chemical production facility is considered a single eligible producer.

Sec. 17.

Minnesota Statutes 2018, section 41A.17, subdivision 3, is amended to read:


Subd. 3.

Cellulosic new text beginforestry new text endbiomass requirements.

All forestry-derived cellulosic
biomassnew text begin used for renewable chemical productionnew text end must be produced using Minnesota deleted text beginstatedeleted text endnew text begin
forest
new text end biomass harvesting guidelines or the equivalent. All cellulosic biomass from brushlands
must be produced using Minnesota brushland deleted text beginharvestingdeleted text end biomass deleted text beginharvestdeleted text endnew text begin harvestingnew text end
guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from land
parcels greater than 160 acres must be certified by the Forest Stewardship Council, new text beginthe
new text end Sustainable Forestry Initiative, ornew text begin thenew text end American Tree Farm System. Uncertified land from
parcels of 160 acres or less and federal land must be harvested by a logger who has completed
training for biomass harvesting from the Minnesota logger education program or the
equivalent and have a forest deleted text beginstewardshipdeleted text endnew text begin managementnew text end plannew text begin, as defined in section 290C.02,
subdivision 7, or its equivalent
new text end.

Sec. 18.

Minnesota Statutes 2018, section 41A.18, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source new text beginfrom Minnesota new text endat least 80 percent deleted text beginraw materials from Minnesota.deleted text endnew text begin of the biomass
used for biomass thermal production, except that,
new text end if a facility is sited 50 miles or less from
the state border, deleted text beginraw materials shoulddeleted text end new text beginbiomass used for biomass thermal production may
new text end be sourced from new text beginoutside of Minnesota, but only if at least 80 percent of the biomass is
sourced from
new text endwithin a 100-mile radiusnew text begin of the facility, or from within Minnesotanew text end. deleted text beginRaw
materials
deleted text endnew text begin Biomassnew text end must be from agricultural or forestry sources. The facility must be located
in Minnesota, must have begun production at a specific location by June 30, 2025, and must
not begin before July 1, 2015. Eligible facilities include existing companies and facilities
that are adding production capacity, or retrofitting existing capacity, as well as new
companies and facilities. Eligible biomass thermal production facilities must produce at
least 250 MMbtu of biomass thermal quarterly.

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

(c) An eligible producer of biomass thermal production shall not transfer the producer's
eligibility for payments under this section to a biomass thermal production 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.

(e) Biofuel production for which payment has been received under section 41A.16, and
renewable chemical production for which payment has been received under section 41A.17,
are not eligible for payment under this section.

Sec. 19.

Minnesota Statutes 2018, section 41A.18, subdivision 2, is amended to read:


Subd. 2.

Payment amounts; bonus; limits; blending.

(a) The commissioner shall make
payments to eligible producers of biomass thermal located in the state. The amount of the
payment for each producer's annual production is $5.00 per MMbtu of biomass thermal
production produced at a specific location for ten years after the start of production.

(b) An eligible facility producing biomass thermal using agricultural cellulosic biomass
is eligible for a 20 percent bonus payment for each MMbtu produced from agricultural
biomass that is derived from perennial crop or cover crop biomass.

(c) Total payments under this section to an eligible thermal producer in a fiscal year
may not exceed the amount necessary for 30,000 MMbtu of thermal production. Total
payments under this section to all eligible thermal producers in a fiscal year may not exceed
the amount necessary for 150,000 MMbtu of total thermal production. deleted text beginThe commissioner
shall award payments on a first-come, first-served basis within the limits of available funding.
deleted text end

(d) An eligible facility may blend a cellulosic feedstock with other fuels in the biomass
thermal production facility, but only the percentage attributable to cellulosic material is
eligible to receive payment.

(e) For purposes of this section, an entity that holds a controlling interest in more than
one biomass thermal production facility is considered a single eligible producer.

Sec. 20.

Minnesota Statutes 2018, section 41A.18, subdivision 3, is amended to read:


Subd. 3.

Cellulosic new text beginforestry new text endbiomass requirements.

All forestry-derived cellulosic
biomassnew text begin used for biomass thermal productionnew text end must be produced using Minnesota deleted text beginstatedeleted text endnew text begin forestnew text end
biomass harvesting guidelines or the equivalent. All new text begincellulosic new text endbiomass from deleted text beginbrushlanddeleted text endnew text begin
brushlands
new text end must be produced using Minnesota brushland deleted text beginharvestingdeleted text end biomass new text beginharvesting
new text end guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from land
parcels greater than 160 acres must be certified by the Forest Stewardship Council, the
Sustainable Forestry Initiative, ornew text begin thenew text end American Tree Farmnew text begin Systemnew text end. Uncertified land from
parcels of 160 acres or less and federal land must be harvested by a logger who has completed
training for biomass harvesting from the Minnesota logger education program or the
equivalent and have a forest deleted text beginstewardshipdeleted text endnew text begin managementnew text end plannew text begin, as defined in section 290C.02,
subdivision 7, or its equivalent
new text end.

Sec. 21.

new text begin [41B.0455] DAIRY MODERNIZATION AND INNOVATION LOAN
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The authority may establish and implement a loan program
to finance dairy modernization and innovations in the state.
new text end

new text begin Subd. 2. new text end

new text begin Loan participation. new text end

new text begin (a) The authority may participate in a dairy modernization
and innovation loan with an eligible lender to a livestock farmer who meets the requirements
of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively engaged in a
livestock operation. A prospective borrower must have a total net worth, including assets
and liabilities of the borrower's spouse and dependents, of less than $1,700,000 in 2017 and
an amount in subsequent years which is adjusted for inflation by multiplying that amount
by the cumulative inflation rate as determined by the United States All-Items Consumer
Price Index.
new text end

new text begin (b) Participation is limited to 45 percent of the principal amount of the loan or $525,000,
whichever is less. The interest rates and repayment terms of the authority's participation
interest may be different from the interest rates and repayment terms of the lender's retained
portion of the loan.
new text end

new text begin Subd. 3. new text end

new text begin Specifications. new text end

new text begin (a) Loan participation may be for acquisition, installation of
improvements to land, buildings, and other permanent structures, including equipment
incorporated in or permanently affixed to the land, buildings, or structures, which are useful
for and intended to be used for the purpose of dairy farming, including, but not limited to:
new text end

new text begin (1) the acquisition, construction, or improvement of buildings or facilities for dairy
farming; or
new text end

new text begin (2) the acquisition of equipment for dairy farming such as:
new text end

new text begin (i) barns;
new text end

new text begin (ii) watering facilities;
new text end

new text begin (iii) feed storage and handling equipment;
new text end

new text begin (iv) milking parlors;
new text end

new text begin (v) robotic equipment;
new text end

new text begin (vi) scales;
new text end

new text begin (vii) milk storage and cooling facilities; or
new text end

new text begin (viii) bulk tanks.
new text end

new text begin (b) Each loan participation must be secured by a mortgage on real property and other
security as the authority may require.
new text end

new text begin Subd. 4. new text end

new text begin Application and origination fee. new text end

new text begin The authority may impose a reasonable
nonrefundable application fee for each application for a loan participation and an origination
fee for each loan issued under the dairy modernization and innovation loan program. The
origination fee initially shall be set at 1.5 percent and the application fee at $50. The authority
may review the fees annually and make adjustments as necessary. The fees must be deposited
in the state treasury and credited to the Rural Finance Authority administrative account
established in section 41B.03.
new text end

new text begin Subd. 5. new text end

new text begin Interest rate. new text end

new text begin The interest rate per annum on the dairy modernization and
innovation loan participation must be at the rate of interest determined by the authority to
be necessary to provide for the timely payment of principal and interest when due on bonds
or other obligations of the authority issued under this chapter, to provide financing for loan
participations made under the dairy modernization and innovation loan program, and to
provide for reasonable and necessary costs of issuing, carrying, administering, and securing
the bonds or notes and to pay the costs incurred and to be incurred by the authority in the
implementation of the dairy modernization and innovation loan program.
new text end

Sec. 22.

Minnesota Statutes 2018, section 41B.055, subdivision 4, is amended to read:


Subd. 4.

Eligible expenditures.

Money may be used for loans for the acquisition of
equipment for animal housing, confinement, animal feeding, milk production, and waste
management, including the following, if related to animal husbandry:

(1) fences;

(2) watering facilities;

(3) feed storage and handling equipment;

(4) milking parlors;

(5) milking equipmentnew text begin, including robotic equipmentnew text end;

(6) scales;

(7) milk storage and cooling facilities;

(8) manure pumping and storage facilities;

(9) capital investment in pasture;

(10) hoop barns;

(11) portable structures;

(12) hay and forage equipment; and

(13) related structural work for the installation of equipment.

Sec. 23.

Minnesota Statutes 2018, section 116.06, is amended by adding a subdivision to
read:


new text begin Subd. 16a. new text end

new text begin Pastures. new text end

new text begin "Pastures" means areas, including winter feeding areas as part of
a grazing area, where grass or other growing plants are used for grazing of livestock and
where the concentration of animals allows a vegetative cover to be maintained during the
growing season. "Pastures" also includes agricultural land that is used for growing crops
during the growing season and is used for grazing of livestock on vegetation or crop residues
during the winter. In either case, a cover of vegetation or crop residues is not required:
new text end

new text begin (1) in the immediate vicinity of supplemental feeding or watering devices;
new text end

new text begin (2) in associated corrals and chutes where livestock are gathered for the purpose of
sorting, veterinary services, loading and unloading trucks and trailers, and other necessary
activities related to good animal husbandry practices;
new text end

new text begin (3) in associated livestock access lanes used to convey livestock to and from areas of
the pasture; and
new text end

new text begin (4) in sacrificial areas that are part of a larger pasture system and are used to temporarily
accommodate livestock and protect other pasture areas when adverse soil or weather
conditions pose a risk of damaging the pastures, and on which the vegetation is naturally
restored or replanted after the adverse soil or weather conditions are removed and the
livestock are moved to other areas of the pasture.
new text end

Sec. 24.

Minnesota Statutes 2018, section 116.07, subdivision 7, is amended to read:


Subd. 7.

Counties; processing applications for animal lot permits.

Any Minnesota
county board may, by resolution, with approval of the Pollution Control Agency, assume
responsibility for processing applications for permits required by the Pollution Control
Agency under this section for livestock feedlots, poultry lots or other animal lots. The
responsibility for permit application processing, if assumed by a county, may be delegated
by the county board to any appropriate county officer or employee.

(a) For the purposes of this subdivision, the term "processing" includes:

(1) the distribution to applicants of forms provided by the Pollution Control Agency;

(2) the receipt and examination of completed application forms, and the certification,
in writing, to the Pollution Control Agency either that the animal lot facility for which a
permit is sought by an applicant will comply with applicable rules and standards, or, if the
facility will not comply, the respects in which a variance would be required for the issuance
of a permit; and

(3) rendering to applicants, upon request, assistance necessary for the proper completion
of an application.

(b) For the purposes of this subdivision, the term "processing" may include, at the option
of the county board, issuing, denying, modifying, imposing conditions upon, or revoking
permits pursuant to the provisions of this section or rules promulgated pursuant to it, subject
to review, suspension, and reversal by the Pollution Control Agency. The Pollution Control
Agency shall, after written notification, have 15 days to review, suspend, modify, or reverse
the issuance of the permit. After this period, the action of the county board is final, subject
to appeal as provided in chapter 14. For permit applications filed after October 1, 2001,
section 15.99 applies to feedlot permits issued by the agency or a county pursuant to this
subdivision.

(c) For the purpose of administration of rules adopted under this subdivision, the
commissioner and the agency may provide exceptions for cases where the owner of a feedlot
has specific written plans to close the feedlot within five years. These exceptions include
waiving requirements for major capital improvements.

(d) For purposes of this subdivision, a discharge caused by an extraordinary natural
event such as a precipitation event of greater magnitude than the 25-year, 24-hour event,
tornado, or flood in excess of the 100-year flood is not a "direct discharge of pollutants."

(e) In adopting and enforcing rules under this subdivision, the commissioner shall
cooperate closely with other governmental agencies.

(f) The Pollution Control Agency shall work with the Minnesota Extension Service, the
Department of Agriculture, the Board of Water and Soil Resources, producer groups, local
units of government, as well as with appropriate federal agencies such as the Natural
Resources Conservation Service and the Farm Service Agency, to notify and educate
producers of rules under this subdivision at the time the rules are being developed and
adopted and at least every two years thereafter.

(g) The Pollution Control Agency shall adopt rules governing the issuance and denial
of permits for livestock feedlots, poultry lots or other animal lots pursuant to this section.
Pastures are exempt from the rules authorized under this paragraphnew text begin, and no feedlot permit
shall include any terms or conditions that impose any requirements related to any pastures
located on, adjacent to, or in the vicinity of the feedlot
new text end. A feedlot permit is not required for
livestock feedlots with more than ten but less than 50 animal units; provided they are not
in shoreland areas. A livestock feedlot permit does not become required solely because of
a change in the ownership of the buildings, grounds, or feedlot. These rules apply both to
permits issued by counties and to permits issued by the Pollution Control Agency directly.

(h) The Pollution Control Agency shall exercise supervising authority with respect to
the processing of animal lot permit applications by a county.

(i) Any new rules or amendments to existing rules proposed under the authority granted
in this subdivision, or to implement new fees on animal feedlots, must be submitted to the
members of legislative policy and finance committees with jurisdiction over agriculture and
the environment prior to final adoption. The rules must not become effective until 90 days
after the proposed rules are submitted to the members.

(j) Until new rules are adopted that provide for plans for manure storage structures, any
plans for a liquid manure storage structure must be prepared or approved by a registered
professional engineer or a United States Department of Agriculture, Natural Resources
Conservation Service employee.

(k) A county may adopt by ordinance standards for animal feedlots that are more stringent
than standards in Pollution Control Agency rules.

(l) After January 1, 2001, a county that has not accepted delegation of the feedlot permit
program must hold a public meeting prior to the agency issuing a feedlot permit for a feedlot
facility with 300 or more animal units, unless another public meeting has been held with
regard to the feedlot facility to be permitted.

(m) After the proposed rules published in the State Register, volume 24, number 25, are
finally adopted, the agency may not impose additional conditions as a part of a feedlot
permit, unless specifically required by law or agreed to by the feedlot operator.

(n) For the purposes of feedlot permitting, a discharge from land-applied manure or a
manure stockpile that is managed according to agency rule must not be subject to a fine for
a discharge violation.

(o) For the purposes of feedlot permitting, manure that is land applied, or a manure
stockpile that is managed according to agency rule, must not be considered a discharge into
waters of the state, unless the discharge is to waters of the state, as defined by section
103G.005, subdivision 17, except type 1 or type 2 wetlands, as defined in section 103G.005,
subdivision 17b
, and does not meet discharge standards established for feedlots under agency
rule.

(p) new text beginThe natural deposit of manure by livestock on pasture shall not be considered a
discharge into waters of the state and shall not be subject to any fine or penalty.
new text end

new text begin (q) new text endUnless the upgrade is needed to correct an immediate public health threat under
section 145A.04, subdivision 8, or the facility is determined to be a concentrated animal
feeding operation under Code of Federal Regulations, title 40, section 122.23, in effect on
April 15, 2003, the agency may not require a feedlot operator:

(1) to spend more than $3,000 to upgrade an existing feedlot with less than 300 animal
units unless cost-share money is available to the feedlot operator for 75 percent of the cost
of the upgrade; or

(2) to spend more than $10,000 to upgrade an existing feedlot with between 300 and
500 animal units, unless cost-share money is available to the feedlot operator for 75 percent
of the cost of the upgrade or $50,000, whichever is less.

deleted text begin (q) For the purposes of this section, "pastures" means areas, including winter feeding
areas as part of a grazing area, where grass or other growing plants are used for grazing and
where the concentration of animals allows a vegetative cover to be maintained during the
growing season except that vegetative cover is not required:
deleted text end

deleted text begin (1) in the immediate vicinity of supplemental feeding or watering devices;
deleted text end

deleted text begin (2) in associated corrals and chutes where livestock are gathered for the purpose of
sorting, veterinary services, loading and unloading trucks and trailers, and other necessary
activities related to good animal husbandry practices; and
deleted text end

deleted text begin (3) in associated livestock access lanes used to convey livestock to and from areas of
the pasture.
deleted text end

(r) A feedlot operator who stores and applies up to 100,000 gallons per calendar year of
private truck wash wastewater resulting from trucks that transport animals or supplies to
and from the feedlot does not require a permit to land-apply industrial by-products if the
feedlot operator stores and applies the wastewater in accordance with Pollution Control
Agency requirements for land applications of industrial by-product that do not require a
permit.

(s) A feedlot operator who holds a permit from the Pollution Control Agency to
land-apply industrial by-products from a private truck wash is not required to have a certified
land applicator apply the private truck wash wastewater if the wastewater is applied by the
feedlot operator to cropland owned or leased by the feedlot operator or by a commercial
animal waste technician licensed by the commissioner of agriculture under chapter 18C.
For purposes of this paragraph and paragraph (r), "private truck wash" means a truck washing
facility owned or leased, operated, and used only by a feedlot operator to wash trucks owned
or leased by the feedlot operator and used to transport animals or supplies to and from the
feedlot.

Sec. 25.

Minnesota Statutes 2018, section 116.07, subdivision 7d, is amended to read:


Subd. 7d.

Exemption.

deleted text begin(a)deleted text end Notwithstanding subdivision 7 or Minnesota Rules, chapter
7020, to the contrary, and notwithstanding the proximity to public or private waters, an
owner or resident of agricultural land on which livestock have been allowed to pasture at
any time during the ten-year period beginning January 1, 2010, is permanently exempt from
requirements related to feedlot or manure management on that land for so long as the property
remains in pasture.

deleted text begin (b) For the purposes of this subdivision, "pasture" means areas where livestock graze
on grass or other growing plants. Pasture also means agricultural land where livestock are
allowed to forage during the winter time and which land is used for cropping purposes in
the growing season. In either case, the concentration of animals must be such that a vegetative
cover, whether of grass, growing plants, or crops, is maintained during the growing season
except in the immediate vicinity of temporary supplemental feeding or watering devices.
deleted text end

Sec. 26.

Minnesota Statutes 2018, section 223.16, subdivision 2a, is amended to read:


Subd. 2a.

Cash sale.

new text begin(a) new text end"Cash sale" meansdeleted text begin:
deleted text end

deleted text begin (a)deleted text end a sale new text beginthat is not reduced to writing as a voluntary extension of credit contract and
new text end for which payment is tendered deleted text beginto the seller not later than the close of business on the next
business day after the sale,
deleted text end either in cash or by check, or by mailing or wiring funds to the
seller's account in the amount of at least 80 percent of the value of the grain at deliverydeleted text begin; ordeleted text endnew text begin.
new text end

(b) deleted text begina sale of a shipment of grain which is part of a multiple shipment sale, for which a
scale ticket clearly marked "CASH" has been received by the seller before completion of
the entire sale, and for which payment is tendered in cash or by check not later than ten
days after the sale of that shipment, except that when the entire sale is completed, payment
is tendered in cash or by check not later than the close of business on the next business day,
or within 48 hours, whichever is later.
deleted text endnew text begin For the purposes of this subdivision, "cash" means
currency or manner of payment equivalent such as a certified check, a cashier's check, a
postal, bank, or express money order, in which the amount of payment is verified and secured
prior to issuance.
new text end

Sec. 27.

Minnesota Statutes 2018, section 223.16, subdivision 4, is amended to read:


Subd. 4.

Grain.

"Grain" means any cereal grain, coarse grain, or oilseed in unprocessed
form for which a standard has been established by the United States Secretary of Agriculture
deleted text begin or the Minnesota Board of Grain Standardsdeleted text end, dry edible beans, or other agricultural crops
designated by the commissioner by rule.

Sec. 28.

Minnesota Statutes 2018, section 223.17, subdivision 3, is amended to read:


Subd. 3.

Grain buyers and storage account; fees.

The commissioner shall set the fees
for inspections under sections 223.15 to 223.22 at levels necessary to pay the expenses of
administering and enforcing sections 223.15 to 223.22.

The fee for any license issued or renewed after June 30, 2005, shall be set according to
the following schedule:

(a) $140 plus $110 for each additional location for grain buyers whose gross annual
purchases are less than $100,000;

(b) $275 plus $110 for each additional location for grain buyers whose gross annual
purchases are at least $100,000, but not more than $750,000;

(c) $415 plus $220 for each additional location for grain buyers whose gross annual
purchases are more than $750,000 but not more than $1,500,000;

(d) $550 plus $220 for each additional location for grain buyers whose gross annual
purchases are more than $1,500,000 but not more than $3,000,000; and

(e) $700 plus $220 for each additional location for grain buyers whose gross annual
purchases are more than $3,000,000.

A penalty amount not to exceed ten percent of the fees due may be imposed by the
commissioner for each month for which the fees are delinquent.

There is created the grain buyers and storage account in the agricultural fund. Money
collected pursuant to sections 223.15 to 223.19 shall be paid into the state treasury and
credited to the grain buyers and storage account and is appropriated to the commissioner
for the administration and enforcement of sections 223.15 to 223.22.new text begin Interest, if any, received
on deposits of these moneys shall be credited to the account, and there shall be paid into
this fund any sum provided by the legislature for the purpose of carrying out the provisions
of those sections.
new text end

Sec. 29.

Minnesota Statutes 2018, section 223.17, is amended by adding a subdivision to
read:


new text begin Subd. 3a. new text end

new text begin Examination fee. new text end

new text begin A person with a license to buy grain is subject to an
examination fee for each licensed location, based on the following schedule for one
examination:
new text end

new text begin Bushel Capacity
new text end
new text begin Examination
Fee
new text end
new text begin Inspections without a grain measure
new text end
new text begin $
new text end
new text begin 100
new text end
new text begin Less than 150,001
new text end
new text begin $
new text end
new text begin 300
new text end
new text begin 150,001 to 250,000
new text end
new text begin $
new text end
new text begin 425
new text end
new text begin 250,001 to 500,000
new text end
new text begin $
new text end
new text begin 545
new text end
new text begin 500,001 to 750,000
new text end
new text begin $
new text end
new text begin 700
new text end
new text begin 750,001 to 1,000,000
new text end
new text begin $
new text end
new text begin 865
new text end
new text begin 1,000,001 to 1,200,000
new text end
new text begin $
new text end
new text begin 1,040
new text end
new text begin 1,200,001 to 1,500,000
new text end
new text begin $
new text end
new text begin 1,205
new text end
new text begin 1,500,001 to 2,000,000
new text end
new text begin $
new text end
new text begin 1,380
new text end
new text begin More than 2,000,000
new text end
new text begin $
new text end
new text begin 1,555
new text end

new text begin The fee for supplemental examinations is $55 per hour per examiner.
new text end

Sec. 30.

Minnesota Statutes 2018, section 223.17, is amended by adding a subdivision to
read:


new text begin Subd. 3b. new text end

new text begin Schedule of examination. new text end

new text begin A licensee under sections 223.15 to 223.23 is
subject to one examination annually conducted by the commissioner or the Agricultural
Marketing Service of the United States Department of Agriculture. Examinations must
include measurement of all grain owned and maintained by the grain buyer. Additional
exams, at the determination of the commissioner, may be required.
new text end

Sec. 31.

Minnesota Statutes 2018, section 223.17, subdivision 4, is amended to read:


Subd. 4.

Bond.

(a) new text beginExcept as provided in paragraph (f), new text endbefore a grain buyer's license
is issued, the applicant for the license must file with the commissioner a bond in a penal
sum prescribed by the commissioner but not less than the following amounts:

(1) $10,000 for grain buyers whose gross annual purchases are $100,000 or less;

(2) $20,000 for grain buyers whose gross annual purchases are more than $100,000 but
not more than $750,000;

(3) $30,000 for grain buyers whose gross annual purchases are more than $750,000 but
not more than $1,500,000;

(4) $40,000 for grain buyers whose gross annual purchases are more than $1,500,000
but not more than $3,000,000;

(5) $50,000 for grain buyers whose gross annual purchases are more than $3,000,000
but not more than $6,000,000;

(6) $70,000 for grain buyers whose gross annual purchases are more than $6,000,000
but not more than $12,000,000;

(7) $125,000 for grain buyers whose gross annual purchases are more than $12,000,000
but not more than $24,000,000; and

(8) $150,000 for grain buyers whose gross annual purchases exceed $24,000,000.

(b) deleted text beginA grain buyer who has filed a bond with the commissioner prior to July 1, 2004, is
not required to increase the amount of the bond to comply with this section until July 1,
2005. The commissioner may postpone an increase in the amount of the bond until July 1,
2006, if a licensee demonstrates that the increase will impose undue financial hardship on
the licensee, and that producers will not be harmed as a result of the postponement. The
commissioner may impose other restrictions on a licensee whose bond increase has been
postponed.
deleted text end The amount of the bond shall be based on the most recent gross annual grain
purchase report of the grain buyer.

(c) A first-time applicant for a grain buyer's license shall file a $50,000 bond with the
commissioner. This bond shall remain in effect for the first year of the license. Thereafter,
the licensee shall comply with the applicable bonding requirements contained in paragraph
(a), clauses (1) to (8).

(d) In lieu of the bond required by this subdivision the applicant may deposit with the
commissioner of management and budget deleted text begincash, a certified check, a cashier's check, a postal,
bank, or express money order, assignable bonds or notes of the United States, or an
assignment of a bank savings account or investment certificate or
deleted text end an irrevocable bank letter
of credit as defined in section 336.5-102, in the same amount as would be required for a
bond.

(e) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
90 days' written notice of the bond's termination date to the licensee and the commissioner.

new text begin (f) A grain buyer who notifies the commissioner of the intent to purchase grain
immediately upon delivery solely with cash; certified check; cashier's check; or postal, bank,
or express money order is not obligated to file a bond as long as annual purchases do not
exceed $100,000.
new text end

Sec. 32.

Minnesota Statutes 2018, section 223.17, subdivision 5, is amended to read:


Subd. 5.

Cash sales; manner of payment.

For a cash sale of a shipment of grain deleted text beginwhich
is part of a multiple shipment sale
deleted text end, the grain buyer shall tender payment to the seller in cash
or by check new text beginor shall wire or mail the payment to the seller's account new text endnot later than ten days
after the sale of that shipment, except that when the entire sale is completed, payment shall
be tendered not later than the close of business on the next day, or within 48 hours, whichever
is later. For other cash sales the grain buyer, before the close of business on the next business
day after the sale, shall tender payment to the seller in cash or by check, or shall wire or
mail funds to the seller's account in the amount of at least 80 percent of the value of the
grain at the time of delivery. The grain buyer shall complete final settlement as rapidly as
possible through ordinary diligence.

Sec. 33.

Minnesota Statutes 2018, section 223.17, subdivision 6, is amended to read:


Subd. 6.

Financial statements.

(a) The commissioner deleted text beginmaydeleted text endnew text begin shallnew text end require an annual
financial statement from a licensee which has been prepared in accordance with generally
accepted accounting principles and deleted text beginwhichdeleted text end meets the following requirements:

(1) the financial statement shall include, but not be limited to the following:

(i) a balance sheet;

(ii) a statement of income (profit and loss);

(iii) a statement of retained earnings;

(iv) a statement of changes in financial position; and

(v) a statement of the dollar amount of grain purchased in the previous fiscal year of the
grain buyerdeleted text begin.deleted text endnew text begin;
new text end

(2) the financial statement shall be accompanied by a compilation report of the financial
statement that is prepared by a grain commission firm deleted text beginor a management firm approved by
the commissioner or by an independent public accountant
deleted text end, in accordance with standards
established by the American Institute of Certified Public Accountantsdeleted text begin. Grain buyers
purchasing less than 150,000 bushels of grain per calendar year may submit a financial
statement prepared by a public accountant who is not an employee or a relative within the
third degree of kindred according to civil law.
deleted text endnew text begin;
new text end

(3) the financial statement shall be accompanied by a certification by the chief executive
officer or the chief executive officer's designee of the licensee, new text beginand where applicable, all
members of the governing board of directors
new text endunder penalty of perjury, that the financial
statement accurately reflects the financial condition of the licensee for the period specified
in the statementdeleted text begin.deleted text endnew text begin;
new text end

new text begin (4) for grain buyers purchasing under $5,000,000 of grain annually, financial statements
shall be reviewed by a certified public accountant in accordance with standards established
by the American Institute of Certified Public Accountants, and must show that the financial
statements are free from material misstatements; and
new text end

new text begin (5) for grain buyers purchasing $5,000,000 or more of grain annually, financial statements
shall be audited by a certified public accountant in accordance with standards established
by the American Institute of Certified Public Accountants and must include an opinion
statement from the certified public accountant.
new text end

(b) Only one financial statement must be filed for a chain of warehouses owned or
operated as a single business entity, unless otherwise required by the commissioner. deleted text beginAny
grain buyer having a net worth in excess of $500,000,000 need not file the financial statement
required by this subdivision but must provide the commissioner with a certified net worth
statement.
deleted text end All financial statements filed with the commissioner are private or nonpublic
data as provided in section 13.02.

new text begin (c) A grain buyer who purchases grain immediately upon delivery solely with cash;
certified check; cashier's check; or postal, bank, or express money order and whose annual
purchases do not exceed $100,000 is exempt from the provisions contained in this
subdivision.
new text end

new text begin (d) The commissioner shall annually provide information on the person's fiduciary duties
to all persons required to certify the financial statement under paragraph (a), clause (2).
new text end

Sec. 34.

Minnesota Statutes 2018, section 223.177, subdivision 2, is amended to read:


Subd. 2.

Oral contracts.

Any grain buyer entering into a voluntary extension of credit
contract orally or by phone shall give or mail to the seller a written confirmation conforming
to the requirements of section 223.175 deleted text beginbefore the close of the next business daydeleted text endnew text begin within ten
days. Written confirmation of oral contracts must meet the requirements of subdivision 3
new text end.

Sec. 35.

Minnesota Statutes 2018, section 223.177, subdivision 3, is amended to read:


Subd. 3.

Contracts reduced to writing.

A voluntary extension of credit contract must
be reduced to writing by the grain buyer and mailed or given to the seller deleted text beginbefore the close
of the next business day after the contract is entered into or, in the case of an oral or phone
contract, after the written confirmation is received by the seller. Provided, however, that if
a scale ticket has been received by the seller prior to the completion of the grain shipment,
the contract must be reduced to writing within ten days after the sale, but not later than the
close of the next business day after the completion of the entire sale
deleted text endnew text begin and is signed by both
buyer and seller within ten days of the date of delivery
new text end. The form of the contract shall comply
with the requirements of section 223.175. A grain buyer may use an electronic version of
a voluntary extension of credit contract that contains the same information as a written
document and that conforms to the requirements of this chapter to which a seller has applied
an electronic signature in place of a written document. There must not at any time be an
electronic and paper voluntary extension of credit contract representing the same lot of
grain.

Sec. 36.

Minnesota Statutes 2018, section 223.177, subdivision 8, is amended to read:


Subd. 8.

Records.

A grain buyer shall keep sufficiently detailed books and records of
new text begin signed new text endvoluntary extension of credit contracts and evidences of grain, rights in grain, and
the proceeds from the sale of grain so as to clearly show compliance with this section. The
commissioner or the commissioner's authorized agent may inspect these books and records
to determine whether grain buyers are complying with the provisions of this chapter, and
for this purpose the commissioner may enter upon any public or private premises during
regular business hours.

Sec. 37.

Minnesota Statutes 2018, section 232.21, is amended by adding a subdivision to
read:


new text begin Subd. 4a. new text end

new text begin Grain bank. new text end

new text begin "Grain bank" means a feed-processing plant that receives and
stores grain it processes and returns to the grain's owner in amounts, at intervals, and with
added ingredients that are mutually agreeable to the grain's owner and the person operating
the plant. Grain bank does not include a seed cleaning plant.
new text end

Sec. 38.

Minnesota Statutes 2018, section 232.21, is amended by adding a subdivision to
read:


new text begin Subd. 13. new text end

new text begin Temporary storage. new text end

new text begin "Temporary storage" means grain stored in outdoor piles
or suitable structures, which are not in use for the entirety of the license period.
new text end

Sec. 39.

Minnesota Statutes 2018, section 232.22, subdivision 3, is amended to read:


Subd. 3.

Fees; grain buyers and storage account.

There is created in the agricultural
fund an account known as the grain buyers and storage account. The commissioner shall
set the fees for examinations, certifications, and licenses under sections 232.20 to 232.24
at levels necessary to pay the costs of administering and enforcing sections 232.20 to 232.24.
All money collected pursuant to sections 232.20 to 232.24 shall be paid by the commissioner
into the state treasury and credited to the grain buyers and storage account and is appropriated
to the commissioner for the administration and enforcement of sections 232.20 to 232.24.
All money collected pursuant to chapter 231 shall be paid by the commissioner into the
grain buyers and storage account and is appropriated to the commissioner for the
administration and enforcement of chapter 231.

The fees for a license to store grain are as follows:

(a) For a license to store grain, $110 for each home rule charter or statutory city or town
in which a public grain warehouse is operated.

(b) A person with a license to store grain in a public grain warehouse is subject to an
examination fee for each licensed location, based on the following schedule for one
examination:

Bushel Capacity
Examination
Fee
Less than 150,001
$
300
150,001 to 250,000
$
425
250,001 to 500,000
$
545
500,001 to 750,000
$
700
750,001 to 1,000,000
$
865
1,000,001 to 1,200,000
$
1,040
1,200,001 to 1,500,000
$
1,205
1,500,001 to 2,000,000
$
1,380
More than 2,000,000
$
1,555

(c) The fee for deleted text beginthe second examinationdeleted text endnew text begin supplemental examinationsnew text end is $55 per hour per
examiner deleted text beginfor warehouse operators who choose to have it performed by the commissionerdeleted text end.

(d) A penalty amount not to exceed ten percent of the fees due may be imposed by the
commissioner for each month for which the fees are delinquent.

Sec. 40.

Minnesota Statutes 2018, section 232.22, subdivision 4, is amended to read:


Subd. 4.

Bonding.

(a) Before a license is issued, the applicant for a public grain
warehouse operator's license shall file with the commissioner a bond in a penal sum
prescribed by the commissioner based on the annual average storage liability as stated on
the statement of grain in storage report or on the gross annual grain purchase report,
whichever is greater, and applying the following amounts:

(1) $10,000 for storages with annual average storage liability of more than $0 but not
more than $25,000;

(2) $20,000 for storages with annual average storage liability of more than $25,001 but
not more than $50,000;

(3) $30,000 for storages with annual average storage liability of more than $50,001 but
not more than $75,000;

(4) $50,000 for storages with annual average storage liability of more than $75,001 but
not more than $100,000;

(5) $75,000 for storages with annual average storage liability of more than $100,001
but not more than $200,000;

(6) $125,000 for storages with annual average storage liability of more than $200,001
but not more than $300,000;

(7) $175,000 for storages with annual average storage liability of more than $300,001
but not more than $400,000;

(8) $225,000 for storages with annual average storage liability of more than $400,001
but not more than $500,000;

(9) $275,000 for storages with annual average storage liability of more than $500,001
but not more than $600,000;

(10) $325,000 for storages with annual average storage liability of more than $600,001
but not more than $700,000;

(11) $375,000 for storages with annual average storage liability of more than $700,001
but not more than $800,000;

(12) $425,000 for storages with annual average storage liability of more than $800,001
but not more than $900,000;

(13) $475,000 for storages with annual average storage liability of more than $900,001
but not more than $1,000,000; and

(14) $500,000 for storages with annual average storage liability of more than $1,000,000.

(b) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
90 days' written notice of the bond's termination date to the licensee and the commissioner.

new text begin (c) In lieu of the bond required by this subdivision, the applicant may deposit with the
commissioner of management and budget an irrevocable bank letter of credit as defined in
section 336.5-102, in the same amount as would be required for a bond.
new text end

Sec. 41.

Minnesota Statutes 2018, section 232.23, subdivision 3, is amended to read:


Subd. 3.

Grain delivered considered stored.

All grain delivered to a public grain
warehouse operator shall be considered stored at the time of delivery, unless arrangements
have been made with the public grain warehouse operator prior to or at the time of delivery
to apply the grain on contract, for shipment or consignment or for cash sale. Grain may be
held in open storage or placed on a warehouse receipt. Warehouse receipts must be issued
for all grain held in open storage within six months of delivery to the warehouse unless the
depositor has signed a statement that the depositor does not desire a warehouse receipt. The
warehouse operator's tariff applies for any grain that is retained in open storage or under
warehouse receipt.new text begin All grain in temporary storage must be owned and exclusively maintained
by the licensee. Grain assigned to grain bank is considered stored grain.
new text end

Sec. 42.

Minnesota Statutes 2018, section 232.24, subdivision 1, is amended to read:


Subdivision 1.

Schedule of examination.

A licensee under sections 232.20 to 232.24
is subject to deleted text begintwo examinationsdeleted text end new text beginone examinationnew text end annually conducted by the commissioner
or the Agricultural Marketing Service of the United States Department of Agriculture. deleted text beginThe
commissioner may, by rule, authorize one examination to be conducted by a qualified
nongovernmental unit.
deleted text endnew text begin Additional exams, at the determination of the commissioner, may
be required.
new text end

Sec. 43.

Minnesota Statutes 2018, section 232.24, subdivision 2, is amended to read:


Subd. 2.

Financial reports.

A licensee under sections 232.20 to 232.24 deleted text beginupon requestdeleted text end
must provide to the commissioner a copy of the financial reports deleted text beginof an audit conducted by
a qualified nongovernmental unit containing information the commissioner requires
deleted text endnew text begin that
meet the requirements in section 223.17, subdivision 6
new text end.

ARTICLE 3

HOUSING APPROPRIATIONS

Section 1. new text beginHOUSING APPROPRIATIONS.
new text end

new text begin 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 "2020" and "2021" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively.
"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium"
is fiscal years 2020 and 2021.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2020
new text end
new text begin 2021
new text end

Sec. 2. new text beginHOUSING FINANCE AGENCY
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 52,798,000
new text end
new text begin $
new text end
new text begin 52,798,000
new text end

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

new text begin 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.
new text end

new text begin Subd. 2. new text end

new text begin Challenge Program
new text end

new text begin 10,675,000
new text end
new text begin 11,675,000
new text end

new text begin This appropriation is 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.
new text end

new text begin The base for this program in fiscal year 2022
and beyond is $11,675,000.
new text end

new text begin Subd. 3. new text end

new text begin Workforce Housing Development
new text end

new text begin 2,000,000
new text end
new text begin 2,000,000
new text end

new text begin This appropriation is for the workforce
housing development program under
Minnesota Statutes, section 462A.39. If
requested by the applicant and approved by
the agency, funded properties may include a
portion of income and rent restricted units.
new text end

new text begin Subd. 4. new text end

new text begin Manufactured Home Park
Infrastructure Grants
new text end

new text begin 2,500,000
new text end
new text begin 2,500,000
new text end

new text begin This appropriation is for manufactured home
park infrastructure grants under Minnesota
Statutes, section 462A.2035, subdivision 1b.
new text end

new text begin Subd. 5. new text end

new text begin Housing Infrastructure Grants Pilot
Program
new text end

new text begin 500,000
new text end
new text begin 0
new text end

new text begin This appropriation is for a pilot program to
provide grants to municipalities for up to 50
percent of the costs of infrastructure that
would otherwise be required to be paid by the
developer for new homeowner-owned housing
developments that are affordable to households
with an income of up to 130 percent of area
median income. The grants shall be limited to
16 housing units in the municipality and a
maximum of $10,000 per housing unit. This
is a onetime appropriation and is available
until June 30, 2021.
new text end

new text begin Subd. 6. new text end

new text begin Workforce Affordable Homeownership
Development Program
new text end

new text begin 1,000,000
new text end
new text begin 500,000
new text end

new text begin This appropriation is for the workforce and
affordable homeownership development
program under Minnesota Statutes, section
462A.38. At least 50 percent of the money
appropriated must be for municipalities with
populations less than 7,500.
new text end

new text begin Subd. 7. new text end

new text begin Housing Trust Fund
new text end

new text begin 11,646,000
new text end
new text begin 11,646,000
new text end

new text begin 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.
new text end

new text begin Subd. 8. new text end

new text begin Rental Assistance for Mentally Ill
new text end

new text begin 4,088,000
new text end
new text begin 4,088,000
new text end

new text begin 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.
new text end

new text begin Subd. 9. new text end

new text begin Family Homeless Prevention
new text end

new text begin 8,519,000
new text end
new text begin 8,519,000
new text end

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

new text begin Subd. 10. new text end

new text begin Home Ownership Assistance Fund
new text end

new text begin 885,000
new text end
new text begin 885,000
new text end

new text begin This appropriation is for the home ownership
assistance program under Minnesota Statutes,
section 462A.21, subdivision 8. The agency
shall continue to strengthen its efforts to
address the disparity gap in the
homeownership rate between white
households and indigenous American Indians
and communities of color. To better
understand and address the disparity gap, the
agency is required to collect, on a voluntary
basis, demographic information regarding
race, color, national origin, and sex of
applicants for agency programs intended to
benefit homeowners and homebuyers.
new text end

new text begin Subd. 11. new text end

new text begin Affordable Rental Investment Fund
new text end

new text begin 3,718,000
new text end
new text begin 3,718,000
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (c) The appropriation also may be used to
finance the acquisition, rehabilitation, and debt
restructuring of existing supportive housing
properties and naturally occurring affordable
housing as determined by the commissioner.
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.
new text end

new text begin Subd. 12. new text end

new text begin Housing Rehabilitation
new text end

new text begin 6,015,000
new text end
new text begin 6,015,000
new text end

new text begin 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
$3,243,000 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,
and may provide grants or forgivable loans if
approved by the agency.
new text end

new text begin Notwithstanding any law to the contrary,
grants or loans under this subdivision may be
made without rent or income restrictions of
owners or tenants. To the extent practicable,
grants or loans must be made available
statewide.
new text end

new text begin Subd. 13. new text end

new text begin Homeownership Capacity, Counseling,
and Stabilization Grants
new text end

new text begin 1,252,000
new text end
new text begin 1,252,000
new text end

new text begin This appropriation is for homeownership
education, counseling, and training under
Minnesota Statutes, section 462A.209, and for
capacity-building grants under Minnesota
Statutes, section 462A.21, subdivision 3b. The
commissioner shall award competitive grants
to nonprofit housing organizations, housing
and redevelopment authorities, or other
political subdivisions to provide intensive
financial education and coaching services to
individuals or families who have the goal of
homeownership and family stabilization.
Financial education and counseling services
include, but are not limited to, asset building,
development of spending plans, credit report
education, repair and rebuilding, consumer
protection training, and debt reduction. Priority
must be given to organizations that have
experience serving underserved populations.
new text end

Sec. 3. new text beginDISTRIBUTION OF HOUSING INVESTMENT FUND AND HOUSING
AFFORDABILITY FUND.
new text end

new text begin For fiscal years 2020 and 2021, to the extent practicable, the commissioner of the housing
finance agency shall distribute the money within the Housing Investment Fund, or Pool 2,
and the Housing Affordability Fund, or Pool 3, equally between the Twin Cities metropolitan
area and the nonmetropolitan area.
new text end

ARTICLE 4

HOUSING STATUTORY CHANGES

Section 1.

Minnesota Statutes 2018, section 299D.085, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Trailer use. new text end

new text begin A vehicle or a combination of vehicles may tow a trailer during
the movement of an overdimensional load if:
new text end

new text begin (1) the party involved is a building mover licensed by the commissioner of transportation
under section 221.81;
new text end

new text begin (2) the building being moved is not a temporary structure;
new text end

new text begin (3) the overdimensional load is a manufactured home, as defined under section 327.31;
or
new text end

new text begin (4) the overdimensional load is a modular home, as defined under section 297A.668,
subdivision 8, paragraph (b).
new text end

Sec. 2.

Minnesota Statutes 2018, section 326B.815, subdivision 1, is amended to read:


Subdivision 1.

Fees.

(a) For the purposes of calculating fees under section 326B.092,
an initial or renewed residential contractor, residential remodeler, or residential roofer license
is a business license. Notwithstanding section 326B.092, the licensing fee for manufactured
home installers under section 327B.041 is deleted text begin$300deleted text endnew text begin $180new text end for a three-year period.

(b) All initial and renewal licenses, except for manufactured home installer licenses,
shall be effective for two years and shall expire on March 31 of the year after the year in
which the application is made.

(c) The commissioner shall in a manner determined by the commissioner, without the
need for any rulemaking under chapter 14, phase in the renewal of residential contractor,
residential remodeler, and residential roofer licenses from one year to two years. By June
30, 2011, all renewed residential contractor, residential remodeler, and residential roofer
licenses shall be two-year licenses.

Sec. 3.

Minnesota Statutes 2018, section 327.31, is amended by adding a subdivision to
read:


new text begin Subd. 23. new text end

new text begin Modular home. new text end

new text begin For the purposes of this section, "modular home" means a
single-family dwelling constructed in accordance with applicable standards adopted in
Minnesota Rules, chapter 1360 or 1361, or in compliance with the 2015 Minnesota
Residential Code for a single-family dwelling with a floor area of 400 square feet or less.
The modular home must be attached to a foundation designed to the State Building Code.
new text end

Sec. 4.

new text begin [327.335] PLACEMENT OF MODULAR HOMES.
new text end

new text begin A modular home may be placed in a manufactured home park as defined in section
327.14, subdivision 3. A modular home placed in a manufactured home park is a
manufactured home for purposes of chapters 327, 327C, and 504B, and all rights, obligations,
and duties under those chapters apply. A modular home may not be placed in a manufactured
home park without prior written approval of the park owner. Nothing in this section shall
be construed to inhibit the application of zoning, subdivision, architectural, or esthetic
requirements pursuant to chapters 394 and 462 that otherwise apply to manufactured homes
and manufactured home parks. A modular home placed in a manufactured home park under
this section shall be assessed and taxed as a manufactured home.
new text end

Sec. 5.

Minnesota Statutes 2018, section 327B.041, is amended to read:


327B.041 MANUFACTURED HOME INSTALLERS.

(a) Manufactured home installers are subject to all of the fees in section 326B.092 and
the requirements of sections 326B.802 to 326B.885, except for the following:

(1) manufactured home installers are not subject to the continuing education requirements
of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education
requirements established in rules adopted under section 327B.10;

(2) the examination requirement of section 326B.83, subdivision 3, for manufactured
home installers shall be satisfied by successful completion of a written examination
administered and developed specifically for the examination of manufactured home installers.
The examination must be administered and developed by the commissioner. The
commissioner and the state building official shall seek advice on the grading, monitoring,
and updating of examinations from the Minnesota Manufactured Housing Association;

(3) a local government unit may not place a surcharge on a license fee, and may not
charge a separate fee to installers;

(4) a dealer or distributor who does not install or repair manufactured homes is exempt
from licensure under sections 326B.802 to 326B.885;

(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply;
and

(6) manufactured home installers are not subject to the contractor recovery fund in
section 326B.89.

(b) The commissioner may waive all or part of the requirements for licensure as a
manufactured home installer for any individual who holds an unexpired license or certificate
issued by any other state or other United States jurisdiction if the licensing requirements of
that jurisdiction meet or exceed the corresponding licensing requirements of the department
and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. deleted text beginFor the
purposes of calculating fees under section 326B.092, licensure as a manufactured home
installer is a business license.
deleted text end

Sec. 6.

Minnesota Statutes 2018, section 327C.095, subdivision 4, is amended to read:


Subd. 4.

Public hearing; relocation compensation; neutral third party.

new text beginWithin 90
days after receiving notice of a closure statement,
new text end the governing body of the affected
municipality shall hold a public hearing to review the closure statement and any impact that
the park closing may have on the displaced residents and the park owner. At the time of,
and in the notice for, the public hearing, displaced residents must be informed that they may
be eligible for payments from the Minnesota manufactured home relocation trust fund under
section 462A.35 as compensation for reasonable relocation costs under subdivision 13,
paragraphs (a) and (e).

The governing body of the municipality may also require that other parties, including
the municipality, but excluding the park owner or its purchaser, involved in the park closing
provide additional compensation to residents to mitigate the adverse financial impact of the
park closing upon the residents.

At the public hearing, the municipality shall appoint anew text begin qualifiednew text end neutral third party, to
be agreed upon by both the manufactured home park owner and manufactured home owners,
whose hourly cost must be reasonable and paid from the Minnesota manufactured home
relocation trust fund. The neutral third party shall act as a paymaster and arbitrator, with
decision-making authority to resolve any questions or disputes regarding any contributions
or disbursements to and from the Minnesota manufactured home relocation trust fund by
either the manufactured home park owner or the manufactured home owners. If the parties
cannot agree on a neutral third party, the municipality will deleted text beginmake a determinationdeleted text endnew text begin determine
who shall act as the neutral third party
new text end.

new text begin The qualified neutral third party shall be familiar with manufactured housing and the
requirements of this section. The neutral third party shall keep an overall receipts and cost
summary together with a detailed accounting, for each manufactured lot, of the payments
received by the manufactured home park owner, and expenses approved and payments
disbursed to the manufactured home owners, pursuant to subdivisions 12 and 13, as well
as a record of all services and hours it provided and at what hourly rate it charged to the
Minnesota manufactured home trust fund. This detailed accounting shall be provided to the
manufactured home park owner, the municipality, and the Minnesota Housing Finance
Agency to be included in its yearly October 15 report as required in subdivision 13, paragraph
(h), not later than 30 days after the expiration of the nine-month notice provided in the
closure statement.
new text end

Sec. 7.

Minnesota Statutes 2018, section 327C.095, subdivision 6, is amended to read:


Subd. 6.

Intent to convert use of park at time of purchase.

Before the execution of
an agreement to purchase a manufactured home park, the purchaser must notify the park
owner, in writing, if the purchaser intends to close the manufactured home park or convert
it to another use within one year of the execution of the agreement. The park owner shall
provide a resident of each manufactured home with a 45-day written notice of the purchaser's
intent to close the park or convert it to another use. The notice must state that the park owner
will provide information on the cash price and the terms and conditions of the purchaser's
offer to residents requesting the information. The notice must be sent by first class mail to
a resident of each manufactured home in the park. The notice period begins on the postmark
date affixed to the notice and ends 45 days after it begins. During the notice period required
in this subdivision, the owners of at least 51 percent of the manufactured homes in the park
or a nonprofit organization which has the written permission of the owners of at least 51
percent of the manufactured homes in the park to represent them in the acquisition of the
park shall have the right to meet the cash price and execute an agreement to purchase the
park for the purposes of keeping the park as a manufactured housing communitynew text begin, provided
that the owners or nonprofit organization will covenant and warrant to the park owner in
the agreement that they will continue to operate the park for not less than six years from
the date of closing
new text end. new text beginThe covenant must be in writing and must be recorded with the office
of the county recorder or registrar of titles to remain in effect.
new text end The park owner must accept
the offer if it meets the cash price and the same terms and conditions set forth in the
purchaser's offer except that the seller is not obligated to provide owner financing. For
purposes of this section, cash price means the cash price offer or equivalent cash offer as
defined in section 500.245, subdivision 1, paragraph (d).

Sec. 8.

Minnesota Statutes 2018, section 327C.095, subdivision 12, is amended to read:


Subd. 12.

Payment to the Minnesota manufactured home relocation trust fund.

(a)
If a manufactured home owner is required to move due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a park, or cessation of use of
the land as a manufactured home park, the manufactured park owner shall, upon the change
in use, pay to the commissioner of management and budget for deposit in the Minnesota
manufactured home relocation trust fund under section 462A.35, the lesser amount of the
actual costs of moving or purchasing the manufactured home approved by the neutral third
party and paid by the Minnesota Housing Finance Agency under subdivision 13, paragraph
(a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each
multisection manufactured home, for which a manufactured home owner has made
application for payment of relocation costs under subdivision 13, paragraph (c). The
manufactured home park owner shall make payments required under this section to the
Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice
from the neutral third party.

(b) A manufactured home park owner is not required to make the payment prescribed
under paragraph (a), nor is a manufactured home owner entitled to compensation under
subdivision 13, paragraph (a) or (e), if:

(1) the manufactured home park owner relocates the manufactured home owner to
another space in the manufactured home park or to another manufactured home park at the
park owner's expense;

(2) the manufactured home owner is vacating the premises and has informed the
manufactured home park owner or manager of this prior to the mailing date of the closure
statement under subdivision 1;

(3) a manufactured home owner has abandoned the manufactured home, or the
manufactured home owner is not current on the monthly lot rental, personal property taxes;

(4) the manufactured home owner has a pending eviction action for nonpayment of lot
rental amount under section 327C.09, which was filed against the manufactured home owner
prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery
has been ordered by the district court;

(5) the conversion of all or a portion of a manufactured home park to another use, the
closure of a park, or cessation of use of the land as a manufactured home park is the result
of a taking or exercise of the power of eminent domain by a governmental entity or public
utility; or

(6) the owner of the manufactured home is not a resident of the manufactured home
park, as defined in section 327C.01, subdivision 9deleted text begin, ordeleted text endnew text begin;new text end the owner of the manufactured home
is a resident, but came to reside in the manufactured home park after the mailing date of
the closure statement under subdivision 1new text begin; or the owner of the manufactured home has not
paid the $15 assessment under paragraph (c)
new text end.

(c) If the unencumbered fund balance in the manufactured home relocation trust fund
is less than $1,000,000 as of June 30 of each year, the commissioner of management and
budget shall assess each manufactured home park owner by mail the total amount of $15
for each licensed lot in their park, payable on or before deleted text beginSeptemberdeleted text endnew text begin Novembernew text end 15 of that
year. deleted text beginThe commissioner of managementdeleted text endnew text begin Failure to notifynew text end and deleted text beginbudget shall deposit any
payments in the Minnesota
deleted text endnew text begin timely assess thenew text end manufactured home deleted text beginrelocation trust fund. On
or before July 15 of
deleted text endnew text begin park owner by August 30 of any year shall waive the assessment and
payment obligations of the manufactured home park owner for that year. Together with said
assessment notice,
new text end each yeardeleted text begin,deleted text end the commissioner of management and budget shall prepare
and distribute to park owners a letter explaining whether funds are being collected for that
year, information about the collection, an invoice for all licensed lots, and a sample form
for the park owners to collect information on which park residents have been accounted
for. If assessed under this paragraph, the park owner may recoup the cost of the $15
assessment as a lump sum or as a monthly fee of no more than $1.25 collected from park
residents together with monthly lot rent as provided in section 327C.03, subdivision 6. Park
owners may adjust payment for lots in their park that are vacant or otherwise not eligible
for contribution to the trust fund under section 327C.095, subdivision 12, paragraph (b),
new text begin and for park residents who have not paid the $15 assessment to the park owner by October
15,
new text endand deduct from the assessment accordingly.new text begin The commissioner of management and
budget shall deposit any payments in the Minnesota manufactured home relocation trust
fund.
new text end

(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action
in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
attorney fees, court costs, and disbursements.

Sec. 9.

Minnesota Statutes 2018, section 327C.095, subdivision 13, is amended to read:


Subd. 13.

Change in use, relocation expenses; payments by park owner.

(a) If a
manufactured home owner is required to relocate due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a manufactured home park, or
cessation of use of the land as a manufactured home park under subdivision 1, and the
manufactured home owner complies with the requirements of this section, the manufactured
home owner is entitled to payment from the Minnesota manufactured home relocation trust
fund equal to the manufactured home owner's actual relocation costs for relocating the
manufactured home to a new location within a deleted text begin25deleted text end new text begin50new text end-mile radius of the park that is being
closed, up to a maximum of $7,000 for a single-section and $12,500 for a multisection
manufactured home. The actual relocation costs must include the reasonable cost of taking
down, moving, and setting up the manufactured home, including equipment rental, utility
connection and disconnection charges, minor repairs, modifications necessary for
transportation of the home, necessary moving permits and insurance, moving costs for any
appurtenances, which meet applicable local, state, and federal building and construction
codes.

(b) A manufactured home owner is not entitled to compensation under paragraph (a) if
the manufactured home park owner is not required to make a payment to the Minnesota
manufactured home relocation trust fund under subdivision 12, paragraph (b).

(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota
manufactured home relocation trust fund, the manufactured home owner shall submit to the
neutral third party and the Minnesota Housing Finance Agency, with a copy to the park
owner, an application for payment, which includes:

(1) a copy of the closure statement under subdivision 1;

(2) a copy of the contract with a moving or towing contractor, which includes the
relocation costs for relocating the manufactured home;

(3) a statement with supporting materials of any additional relocation costs as outlined
in subdivision 1;

(4) a statement certifying that none of the exceptions to receipt of compensation under
subdivision 12, paragraph (b), apply to the manufactured home owner;

(5) a statement from the manufactured park owner that the lot rental is current and that
the annual $15 deleted text beginpaymentsdeleted text endnew text begin paymentnew text end to the Minnesota manufactured home relocation trust
fund deleted text beginhavedeleted text endnew text begin hasnew text end been paid when due; and

(6) a statement from the county where the manufactured home is located certifying that
personal property taxes for the manufactured home are paid through the end of that year.

(d)new text begin The neutral third party shall promptly process all payments for completed applications
within 14 days.
new text end If the neutral third party has acted reasonably and does not approve or deny
payment within 45 days after receipt of the information set forth in paragraph (c), the
payment is deemed approved. Upon approval and request by the neutral third party, the
Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 percent
of the contract price payable to the mover and towing contractor for relocating the
manufactured home in the amount of the actual relocation cost, plus a check to the home
owner for additional certified costs associated with third-party vendors, that were necessary
in relocating the manufactured home. The moving or towing contractor shall receive 50
percent upon execution of the contract and 50 percent upon completion of the relocation
and approval by the manufactured home owner. The moving or towing contractor may not
apply the funds to any other purpose other than relocation of the manufactured home as
provided in the contract. A copy of the approval must be forwarded by the neutral third
party to the park owner with an invoice for payment of the amount specified in subdivision
12, paragraph (a).

(e) In lieu of collecting a relocation payment from the Minnesota manufactured home
relocation trust fund under paragraph (a), the manufactured home owner may collect an
amount from the fund after reasonable efforts to relocate the manufactured home have failed
due to the age or condition of the manufactured home, or because there are no manufactured
home parks willing or able to accept the manufactured home within a 25-mile radius. A
manufactured home owner may tender title of the manufactured home in the manufactured
home park to the manufactured home park owner, and collect an amount to be determined
by an independent appraisal. The appraiser must be agreed to by both the manufactured
home park owner and the manufactured home owner. If the appraised market value cannot
be determined, the tax market value, averaged over a period of five years, can be used as a
substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a
single-section and $14,500 for a multisection manufactured home. The minimum amount
that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a
multisection manufactured home. The manufactured home owner shall deliver to the
manufactured home park owner the current certificate of title to the manufactured home
duly endorsed by the owner of record, and valid releases of all liens shown on the certificate
of title, and a statement from the county where the manufactured home is located evidencing
that the personal property taxes have been paid. The manufactured home owner's application
for funds under this paragraph must include a document certifying that the manufactured
home cannot be relocated, that the lot rental is current, that the annual $15 payments to the
Minnesota manufactured home relocation trust fund have been paid when due, that the
manufactured home owner has chosen to tender title under this section, and that the park
owner agrees to make a payment to the commissioner of management and budget in the
amount established in subdivision 12, paragraph (a), less any documented costs submitted
to the neutral third party, required for demolition and removal of the home, and any debris
or refuse left on the lot, not to exceed deleted text begin$1,000deleted text endnew text begin $3,000new text end. The manufactured home owner must
also provide a copy of the certificate of title endorsed by the owner of record, and certify
to the neutral third party, with a copy to the park owner, that none of the exceptions to
receipt of compensation under subdivision 12, paragraph (b), clauses (1) to (6), apply to the
manufactured home owner, and that the home owner will vacate the home within 60 days
after receipt of payment or the date of park closure, whichever is earlier, provided that the
monthly lot rent is kept current.

(f) The Minnesota Housing Finance Agency must make a determination of the amount
of payment a manufactured home owner would have been entitled to under a local ordinance
in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured home owner's
compensation for relocation costs from the fund under section 462A.35, is the greater of
the amount provided under this subdivision, or the amount under the local ordinance in
effect on May 26, 2007, that is applicable to the manufactured home owner. Nothing in this
paragraph is intended to increase the liability of the park owner.

(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be
liable to any person for recovery if the funds in the Minnesota manufactured home relocation
trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance
Agency shall keep a record of the time and date of its approval of payment to a claimant.

new text begin (h)(1) By October 15, 2019, the Minnesota Housing Finance Agency shall post on its
website and report to the chairs of the senate Finance Committee and house of representatives
Ways and Means Committee on the Minnesota manufactured home relocation trust fund,
including the account balance, payments to claimants, the amount of any advances to the
fund, the amount of any insufficiencies encountered during the previous calendar year, and
any itemized administrative charges or expenses deducted from the trust fund balance. If
sufficient funds become available, the Minnesota Housing Finance Agency shall pay the
manufactured home owner whose unpaid claim is the earliest by time and date of approval.
new text end

deleted text begin (h)deleted text endnew text begin (2) Beginning in 2019,new text end thenew text begin Minnesota Housing Financenew text end Agency shallnew text begin post on its
website and
new text end report to the chairs of the senate Finance Committee and house of representatives
Ways and Means Committee by deleted text beginJanuarydeleted text endnew text begin Octobernew text end 15 of each year on the Minnesota
manufactured home relocation trust fund, including thenew text begin aggregatenew text end account balance,new text begin the
aggregate assessment payments received, summary information regarding each closed park
including the total
new text end payments to claimantsnew text begin and payments received from each closed parknew text end,
the amount of any advances to the fund, the amount of any insufficiencies encountered
during the previous deleted text begincalendardeleted text endnew text begin fiscalnew text end year,new text begin reports of neutral third parties provided pursuant
to subdivision 4,
new text end and anynew text begin itemizednew text end administrative charges or expenses deducted from the
trust fund balancenew text begin, all of which should be reconciled to the previous year's trust fund balancenew text end.
If sufficient funds become available, the Minnesota Housing Finance Agency shall pay the
manufactured home owner whose unpaid claim is the earliest by time and date of approval.

Sec. 10.

Minnesota Statutes 2018, section 327C.095, is amended by adding a subdivision
to read:


new text begin Subd. 16. new text end

new text begin Reporting of licensed manufactured home parks. new text end

new text begin The Department of Health
or, if applicable, local units of government that have entered into a delegation of authority
agreement with the Department of Health as provided in section 145A.07 shall provide, by
March 31 of each year, a list of names and addresses of the manufactured home parks
licensed in the previous year, and for each manufactured home park, the current licensed
owner, the owner's address, the number of licensed manufactured home lots, and other data
as they may request for the Department of Management and Budget to invoice each licensed
manufactured home park in the state of Minnesota.
new text end

Sec. 11.

Minnesota Statutes 2018, section 428A.11, subdivision 4, is amended to read:


Subd. 4.

Housing improvements.

"Housing improvements" has the meaning given in
the city's enabling ordinance. Housing improvements may include improvements to common
elements of a condominium or other common interest communitynew text begin, or to a manufactured
home park
new text end.

Sec. 12.

Minnesota Statutes 2018, section 428A.11, subdivision 6, is amended to read:


Subd. 6.

Housing unit.

"Housing unit" means real property and improvements thereon
consisting of a one-dwelling unit, or an apartment or unit as described in chapter 515, 515A,
or 515B, respectively,new text begin or a manufactured home in a manufactured home parknew text end that is occupied
by a person or family for use as a residence.

Sec. 13.

Minnesota Statutes 2018, section 462A.2035, subdivision 1a, is amended to read:


Subd. 1a.

Individual assistance grants.

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 deleted text beginState Buildingdeleted text endnew text begin United States Department
of Housing and Urban Development's Manufactured Housing
new text end Code in effect at the time of
the sale, not to exceed $10,000 per home.

Sec. 14.

Minnesota Statutes 2018, section 462A.2035, subdivision 1b, is amended to read:


Subd. 1b.

Manufactured home park infrastructure grants.

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

(1) new text beginacquisition of and new text endimprovements in manufactured home parks; and

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

Sec. 15.

Minnesota Statutes 2018, section 462A.209, subdivision 8, is amended to read:


Subd. 8.

Report.

new text begin(a) new text endBy January 10 of every year, each nonprofit organization new text beginor political
subdivision
new text endthat delivers services under this section new text beginand capacity building under section
462A.21, subdivision 3b,
new text endmust submit a report to the agency deleted text beginthat summarizes the number
of people served and the sources and amounts of nonstate money used to fund the services
deleted text end.
new text begin The report must include, at a minimum, the following information:
new text end

new text begin (1) details of program costs;
new text end

new text begin (2) the number of staff, both within the organization and any outside organization;
new text end

new text begin (3) the number of program participants;
new text end

new text begin (4) the demographic information including, but not limited to, race, age, gender, and
income of program participants;
new text end

new text begin (5) a list of any and all subgrantees receiving funds from the program, as well as the
amount of funding received;
new text end

new text begin (6) information about other sources of funding including other public or private funding
or in-kind donations;
new text end

new text begin (7) evidence that the organization administering a program or a subgrantee of a program
is in good standing with the Minnesota Secretary of State and the Minnesota Department
of Revenue;
new text end

new text begin (8) a short description of what each program does; and
new text end

new text begin (9) to the extent practicable, quantifiable measures of program success.
new text end

new text begin (b) new text endThe agency shall annually submit a report new text begincontaining the information received from
nonprofit organizations and political subdivisions under paragraph (a)
new text endto the deleted text beginlegislaturedeleted text endnew text begin
members of the legislative housing policy and finance committees and divisions
new text end by February
15.

new text begin (c) A program required to report under paragraph (a) is ineligible for future state funding
if it does not submit all of the information required under paragraph (a).
new text end

Sec. 16.

Minnesota Statutes 2018, section 462A.22, subdivision 9, is amended to read:


Subd. 9.

Biennial report.

The agency shall also submit a biennial report of its activities
and receipts, and a plan for the next biennium, to the governor and the legislature on or
before February 15 in each odd-numbered year. The report shall includenew text begin: (1)new text end the distribution
of money under each agency program by county, except for counties containing a city of
the first class, where the distribution shall be reported by municipalitynew text begin; and (2) the cost per
unit of housing and the cost per square foot of housing financed under each agency program
new text end.

In addition, the report shall include the cost to the agency of the issuance of its bonds
for each issue in the biennium, along with comparable information for other state housing
finance agencies.

Sec. 17.

Minnesota Statutes 2018, section 462A.24, is amended to read:


462A.24 CONSTRUCTIONnew text begin; GRANTS AND LOANS; PRIORITIESnew text end.

new text begin (a) new text endThis chapter is necessary for the welfare of the state of Minnesota and its inhabitants;
therefore, it shall be liberally construed to effect its purpose.

new text begin (b) To the extent practicable, grants and loans shall be made so that an approximately
equal amount of financing is provided in the metropolitan area and in the nonmetropolitan
area.
new text end

new text begin (c) Programs of the agency shall give priority to projects in communities with lower
infrastructure development costs.
new text end

new text begin (d) After final decisions are made on applications for programs of the agency, the results
of any quantitative scoring system used to rank applications shall be posted on the agency
website.
new text end

Sec. 18.

Minnesota Statutes 2018, section 462A.33, subdivision 1, is amended to read:


Subdivision 1.

Created.

The economic development and housing challenge program is
created to be administered by the agency.new text begin Notwithstanding section 462A.24, this section
shall be construed based on the specific language within this section and within an
appropriation pursuant to this section.
new text end

(a) The program shall provide grants or loans for the purpose of construction, acquisition,
rehabilitation, demolition or removal of existing structures, construction financing, permanent
financing, interest rate reduction, refinancing, and gap financing of housing new text beginor manufactured
home parks, as defined in section 327C.01,
new text endto support economic development and
redevelopment activities or job creation or job preservation within a community or region
by meeting locally identified housing needs.new text begin "Locally identified housing needs" means
housing for the area work force supported by the local municipality, housing redevelopment
authority, economic development authority, or other political subdivision responsible for
housing.
new text end

Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,
rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household
can afford for housing, based on industry standards and practices.

(b) Preference for grants and loans shall be given to comparable proposals that include
regulatory changes or waivers that result in identifiable cost avoidance or cost reductions,
such as increased density, flexibility in site development standards, or zoning code
requirements. Preference must also be given among comparable proposals to proposals for
projects that are accessible to transportation systems, jobs, schools, and other services.

(c) If a grant or loan is used for demolition or removal of existing structures, the cleared
land must be used for the construction of housing to be owned or rented by persons who
meet the income limits of this section or for other housing-related purposes that primarily
benefit the persons residing in the adjacent housing. In making selections for grants or loans
for projects that demolish affordable housing units, the agency must review the potential
displacement of residents and consider the extent to which displacement of residents is
minimized.

Sec. 19.

Minnesota Statutes 2018, section 462A.33, subdivision 2, is amended to read:


Subd. 2.

Eligible recipients.

Challenge grants or loans may be made to a city, a federally
recognized American Indian tribe or subdivision located in Minnesota, a tribal housing
corporation, a private developer, a nonprofit organization, or the owner of the housingnew text begin or
the manufactured home park
new text end, including individuals. For the purpose of this section, "city"
has the meaning given it in section 462A.03, subdivision 21. To the extent practicable,
grants and loans shall be made so that an approximately equal number of housing units are
financed in the metropolitan area and in the nonmetropolitan area.

Sec. 20.

Minnesota Statutes 2018, section 462A.33, subdivision 3, is amended to read:


Subd. 3.

Contribution requirement.

Fifty percent of the funds appropriated for this
section must be used for challenge grants or loans for housing proposals with financial or
in-kind contributions from nonstate resources that reduce the need for deferred loan or grant
funds from state resources. Challenge grants or loans must be used for economically viable
homeownership or rental housing proposals that address the housing needs of the local work
force.new text begin "Housing needs of the local work force" means one or more businesses located in
the project area or within 25 miles of the area that employs a minimum of 20 full-time
equivalent employees in aggregate and have provided a written statement to the local housing
authority indicating that the lack of available housing has impeded their ability to recruit
and hire employees.
new text end

Among comparable proposals, preference must be given to proposals that include
contributions from nonstate resources for the greatest portion of the total development cost.
Comparable proposals with contributions from local units of government or private
philanthropic, religious, or charitable organizations must be given preference in awarding
grants or loans.

For the purpose of this subdivision, a contribution may consist partially or wholly of the
premium paid for federal housing tax credits.

Sec. 21.

Minnesota Statutes 2018, section 462A.37, subdivision 2, is amended to read:


Subd. 2.

Authorization.

(a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the payment
made under this section may be pledged. The housing infrastructure bonds authorized in
this subdivision may be issued to fund loans, or grants for the purposes of clause (4), on
terms and conditions the agency deems appropriate, made for one or more of the following
purposes:

(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive
housing for individuals and families who are without a permanent residence;

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
housing to be used for affordable rental housing and the costs of new construction of rental
housing on abandoned or foreclosed property where the existing structures will be demolished
or removed;

(3) to finance that portion of the costs of acquisition of property that is attributable to
the land to be leased by community land trusts to low- and moderate-income homebuyers;

(4) to finance deleted text beginthat portion ofdeleted text end the new text beginacquisition, new text endimprovementnew text begin,new text end and infrastructure of
manufactured home parks under section 462A.2035, subdivision 1bdeleted text begin, that is attributable to
land to be leased to low- and moderate-income manufactured home owners
deleted text end;

(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of senior housing; and

(6) to finance the costs of acquisition and rehabilitation of federally assisted rental
housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
of federally assisted rental housing, including providing funds to refund, in whole or in part,
outstanding bonds previously issued by the agency or another government unit to finance
or refinance such costs.

(b) Among comparable proposals for permanent supportive housing, preference shall
be given to permanent supportive housing for veterans and other individuals or families
who:

(1) either have been without a permanent residence for at least 12 months or at least four
times in the last three years; or

(2) are at significant risk of lacking a permanent residence for 12 months or at least four
times in the last three years.

(c) Among comparable proposals for senior housing, the agency must give priority to
requests for projects that:

(1) demonstrate a commitment to maintaining the housing financed as affordable to
seniors;

(2) leverage other sources of funding to finance the project, including the use of
low-income housing tax credits;

(3) provide access to services to residents and demonstrate the ability to increase physical
supports and support services as residents age and experience increasing levels of disability;

(4) provide a service plan containing the elements of clause (3) reviewed by the housing
authority, economic development authority, public housing authority, or community
development agency that has an area of operation for the jurisdiction in which the project
is located; and

(5) include households with incomes that do not exceed 30 percent of the median
household income for the metropolitan area.

To the extent practicable, the agency shall balance the loans made between projects in the
metropolitan area and projects outside the metropolitan area. Of the loans made to projects
outside the metropolitan area, the agency shall, to the extent practicable, balance the loans
made between projects in counties or cities with a population of 20,000 or less, as established
by the most recent decennial census, and projects in counties or cities with populations in
excess of 20,000.

Sec. 22.

Minnesota Statutes 2018, section 462A.38, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

A workforce and affordable homeownership development
program is established to award homeownership development grants to new text begincities, tribal
governments,
new text endnonprofit organizations, cooperatives created under chapter 308A or 308B,
and community land trusts created for the purposes outlined in section 462A.31, subdivision
1, for development of workforce and affordable homeownership projects. The purpose of
the program is to increase the supply of workforce and affordable, owner-occupied
multifamily or single-family housing throughout Minnesota.

Sec. 23.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Aggregate bond limitation. new text end

new text begin "Aggregate bond limitation" means up to 55
percent of the reasonably expected aggregate basis of a residential rental project and the
land on which the project is or will be located.
new text end

Sec. 24.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin AMI. new text end

new text begin "AMI" means the area median income for the applicable county or
metropolitan area as published by the Department of Housing and Urban Development, as
adjusted for household size.
new text end

Sec. 25.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 12a. new text end

new text begin LIHTC. new text end

new text begin "LIHTC" means low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended.
new text end

Sec. 26.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 21a. new text end

new text begin Preservation project. new text end

new text begin "Preservation project" means any residential rental
project, regardless of whether or not such project is restricted to persons of a certain age or
older, that is expected to generate low-income housing tax credits under section 42 of the
Internal Revenue Code of 1986, as amended, and (1) receives federal project-based rental
assistance, or (2) is funded through a loan from or guaranteed by the United States
Department of Agriculture's Rural Development Program. In addition, to qualify as a
preservation project, the amount of bonds requested in the application must not exceed the
aggregate bond limitation.
new text end

Sec. 27.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 30. new text end

new text begin 30 percent AMI residential rental project. new text end

new text begin "30 percent AMI residential
rental project" means a residential rental project that does not otherwise qualify as a
preservation project, is expected to generate low-income housing tax credits under section
42 of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential
units, and:
new text end

new text begin (1) all the residential units of the project:
new text end

new text begin (i) are reserved for tenants whose income, on average, is 30 percent of AMI or less;
new text end

new text begin (ii) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code
of 1986, as amended; and
new text end

new text begin (iii) are subject to rent and income restrictions for a period of not less than 30 years; or
new text end

new text begin (2)(i) is located outside of the metropolitan area as defined in section 473.121, subdivision
2, and within a county or metropolitan area that has a current median area gross income
that is less than the statewide area median income for Minnesota;
new text end

new text begin (ii) all of the units of the project are rent-restricted in accordance with section 42(g)(2)
of the Internal Revenue Code of 1986, as amended; and
new text end

new text begin (iii) all of the units of the project are subject to the applicable rent and income restrictions
for a period of not less than 30 years.
new text end

new text begin In addition, to qualify as a 30 percent AMI residential project, the amount of bonds
requested in the application must not exceed the aggregate bond limitation.
new text end

Sec. 28.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 31. new text end

new text begin 50 percent AMI residential rental project. new text end

new text begin "50 percent AMI residential
rental project" means a residential rental project that does not qualify as a preservation
project or 30 percent AMI residential rental project, is expected to generate low-income
housing tax credits under section 42 of the Internal Revenue Code of 1986, as amended,
from 100 percent of its residential units, and in which all the residential units of the project:
new text end

new text begin (1) are reserved for tenants whose income, on average, is 50 percent of AMI or less;
new text end

new text begin (2) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code
of 1986, as amended; and
new text end

new text begin (3) are subject to rent and income restrictions for a period of not less than 30 years.
new text end

new text begin In addition, to qualify as a 50 percent AMI residential rental project, the amount of bonds
requested in the application must not exceed the aggregate bond limitation.
new text end

Sec. 29.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 32. new text end

new text begin 100 percent LIHTC project. new text end

new text begin "100 percent LIHTC project" means a residential
rental project that is expected to generate low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential units
and does not otherwise qualify as a preservation project, 30 percent AMI residential rental
project, or 50 percent AMI residential rental project. In addition, to qualify as a 100 percent
LIHTC project, the amount of bonds requested in the application must not exceed the
aggregate bond limitation.
new text end

Sec. 30.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 33. new text end

new text begin 20 percent LIHTC project. new text end

new text begin "20 percent LIHTC project" means a residential
rental project that is expected to generate low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended, from at least 20 percent of its residential
units and does not otherwise qualify as a preservation project, 30 percent AMI residential
rental project, 50 percent AMI residential rental project, or 100 percent LIHTC project. In
addition, to qualify as a 20 percent LIHTC project, the amount of bonds requested in the
application must not exceed the aggregate bond limitation.
new text end

Sec. 31.

Minnesota Statutes 2018, section 474A.03, subdivision 1, is amended to read:


Subdivision 1.

Under federal tax law; allocations.

At the beginning of each calendar
year after December 31, 2001, the commissioner shall determine the aggregate dollar amount
of the annual volume cap under federal tax law for the calendar year, and of this amount
the commissioner shall make the following allocation:

(1) $74,530,000 to the small issue pool;

(2) $122,060,000 to the housing pooldeleted text begin, of which 31 percent of the adjusted allocation is
reserved until the last Monday in July for single-family housing programs
deleted text end;

(3) $12,750,000 to the public facilities pool; and

(4) amounts to be allocated as provided in subdivision 2a.

If the annual volume cap is greater or less than the amount of bonding authority allocated
under clauses (1) to (4) and subdivision 2a, paragraph (a), clauses (1) to (4), the allocation
must be adjusted so that each adjusted allocation is the same percentage of the annual volume
cap as each original allocation is of the total bonding authority originally allocated.

Sec. 32.

Minnesota Statutes 2018, section 474A.061, subdivision 1, is amended to read:


Subdivision 1.

Allocation applicationnew text begin; small issue pool and public facilities poolnew text end.

(a)
new text begin For any requested allocations from the small issue pool and the public facilities pool, new text endan
issuer may apply for an allocation under this section by submitting to the department an
application on forms provided by the department, accompanied by (1) a preliminary
resolution, (2) a statement of bond counsel that the proposed issue of obligations requires
an allocation under this chapter and the Internal Revenue Code, (3) the type of qualified
bonds to be issued, (4) an application deposit in the amount of one percent of the requested
allocation before the last Monday in July, or in the amount of two percent of the requested
allocation on or after the last Monday in July,new text begin andnew text end (5) a public purpose scoring worksheet
for manufacturing project and enterprise zone facility project applicationsdeleted text begin, and (6) for
residential rental projects, a statement from the applicant or bond counsel as to whether the
project preserves existing federally subsidized housing for residential rental project
applications and whether the project is restricted to persons who are 55 years of age or older
deleted text end.
The issuer must pay the application deposit deleted text beginby a check made payabledeleted text end to the Department of
Management and Budget. The Minnesota Housing Finance Agency, the Minnesota Rural
Finance Authority, and the Minnesota Office of Higher Education may apply for and receive
an allocation under this section without submitting an application deposit.

(b) An entitlement issuer may not apply for an allocation deleted text beginfrom the public facilities pooldeleted text endnew text begin
under this subdivision
new text end unless it has either permanently issued bonds equal to the amount of
its entitlement allocation for the current year plus any amount of bonding authority carried
forward from previous years or returned for reallocation all of its unused entitlement
allocation. deleted text beginAn entitlement issuer may not apply for an allocation from the housing pool
unless it either has permanently issued bonds equal to any amount of bonding authority
carried forward from a previous year or has returned for reallocation any unused bonding
authority carried forward from a previous year.
deleted text end For purposes of this subdivision, its
entitlement allocation includes an amount obtained under section 474A.04, subdivision 6.
deleted text begin This paragraph does not apply to an application from the Minnesota Housing Finance Agency
for an allocation under subdivision 2a for cities who choose to have the agency issue bonds
on their behalf.
deleted text end

(c) If an application is rejected under this section, the commissioner must notify the
applicant and return the application deposit to the applicant within 30 days unless the
applicant requests in writing that the application be resubmitted. The granting of an allocation
of bonding authority under this section must be evidenced by a certificate of allocation.

Sec. 33.

Minnesota Statutes 2018, section 474A.061, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Allocation application; housing pool. new text end

new text begin (a) For any requested allocations from
the housing pool, an issuer may apply for an allocation under this section by submitting to
the department an application on forms provided by the department, accompanied by (1) a
preliminary resolution, (2) a statement of bond counsel that the proposed issue of obligations
requires an allocation under this chapter and the Internal Revenue Code, (3) an application
deposit in the amount of two percent of the requested allocation, (4) a sworn statement from
the applicant identifying the project as either a preservation project, 30 percent AMI
residential rental project, 50 percent AMI residential rental project, 100 percent LIHTC
project, 20 percent LIHTC project, or any other residential rental project, and (5) a
certification from the applicant or its accountant stating whether the requested allocation
exceeds the aggregate bond limitation. The issuer must pay the application deposit to the
Department of Management and Budget. The Minnesota Housing Finance Agency may
apply for and receive an allocation under this section without submitting an application
deposit.
new text end

new text begin (b) An entitlement issuer may not apply for an allocation from the housing pool unless
it either has permanently issued bonds equal to any amount of bonding authority carried
forward from a previous year or has returned for reallocation any unused bonding authority
carried forward from a previous year. For purposes of this subdivision, its entitlement
allocation includes an amount obtained under section 474A.04, subdivision 6. This paragraph
does not apply to an application from the Minnesota Housing Finance Agency for an
allocation under subdivision 2a for cities who choose to have the agency issue bonds on the
city's behalf.
new text end

new text begin (c) If an application is rejected under this section, the commissioner must notify the
applicant and return the application deposit to the applicant within 30 days unless the
applicant requests in writing that the application be resubmitted. The granting of an allocation
of bonding authority under this section must be evidenced by a certificate of allocation.
new text end

Sec. 34.

Minnesota Statutes 2018, section 474A.061, subdivision 2a, is amended to read:


Subd. 2a.

Housing pool allocation.

(a) Commencing on the second Tuesday in January
and continuing on each Monday through July 15, the commissioner shall allocate available
bonding authority from the housing pool to applications received on or before the Monday
of the preceding week for residential rental projects that meet the eligibility criteria under
section 474A.047. Allocations of available bonding authority from the housing pool for
eligible residential rental projects shall be awarded in the following order of priority: deleted text begin(1)
projects that preserve existing federally subsidized housing; (2) projects that are not restricted
to persons who are 55 years of age or older; and (3) other residential rental projects. Prior
to May 15, no allocation shall be made to a project restricted to persons who are 55 years
of age or older
deleted text end

new text begin (1) preservation projects;
new text end

new text begin (2) 30 percent AMI residential rental projects;
new text end

new text begin (3) 50 percent AMI residential rental projects;
new text end

new text begin (4) 100 percent LIHTC projects;
new text end

new text begin (5) 20 percent LIHTC projects; and
new text end

new text begin (6) other residential rental projects for which the amount of bonds requested in their
respective applications do not exceed the aggregate bond limitation
new text end.

If an issuer that receives an allocation under this paragraph does not issue obligations equal
to all or a portion of the allocation received within 120 days of the allocation or returns the
allocation to the commissioner, the amount of the allocation is canceled and returned for
reallocation through the housing pool or to the unified pool after July 15.

(b) After January 1, and through January 15, The Minnesota Housing Finance Agency
may accept applications from cities for single-family housing programs which meet program
requirements as follows:

(1) the housing program must meet a locally identified housing need and be economically
viable;

(2) the adjusted income of home buyers may not exceed 80 percent of the greater of
statewide or area median income as published by the Department of Housing and Urban
Development, adjusted for household size;

(3) house price limits may not exceed the federal price limits established for mortgage
revenue bond programs. Data on the home purchase price amount, mortgage amount, income,
household size, and race of the households served in the previous year's single-family
housing program, if any, must be included in each application; and

(4) for applicants who choose to have the agency issue bonds on their behalf, an
application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal
to one percent of the requested allocation must be submitted to the Minnesota Housing
Finance Agency before the agency forwards the list specifying the amounts allocated to the
commissioner under paragraph (d). The agency shall submit the city's application fee and
application deposit to the commissioner when requesting an allocation from the housing
pool.

Applications by a consortium shall include the name of each member of the consortium
and the amount of allocation requested by each member.

(c) Any amounts remaining in the housing pool after July 15 are available for
single-family housing programs for cities that applied in January and received an allocation
under this section in the same calendar year. For a city that chooses to issue bonds on its
own behalf or pursuant to a joint powers agreement, the agency must allot available bonding
authority based on the formula in paragraphs (d) and (f). Allocations will be made loan by
loan, on a first-come, first-served basis among cities on whose behalf the Minnesota Housing
Finance Agency issues bonds.

Any city that received an allocation pursuant to paragraph (f) in the same calendar year
that wishes to issue bonds on its own behalf or pursuant to a joint powers agreement for an
amount becoming available for single-family housing programs after July 15 shall notify
the Minnesota Housing Finance Agency by July 15. The Minnesota Housing Finance Agency
shall notify each city making a request of the amount of its allocation within three business
days after July 15. The city must comply with paragraph (f).

For purposes of paragraphs (a) to (h), "city" means a county or a consortium of local
government units that agree through a joint powers agreement to apply together for
single-family housing programs, and has the meaning given it in section 462C.02, subdivision
6
. "Agency" means the Minnesota Housing Finance Agency.

(d) The total amount of allocation for mortgage bonds for one city is limited to the lesser
of: (i) the amount requested, or (ii) the product of the total amount available for mortgage
bonds from the housing pool, multiplied by the ratio of each applicant's population as
determined by the most recent estimate of the city's population released by the state
demographer's office to the total of all the applicants' population, except that each applicant
shall be allocated a minimum of $100,000 regardless of the amount requested or the amount
determined under the formula in clause (ii). If a city applying for an allocation is located
within a county that has also applied for an allocation, the city's population will be deducted
from the county's population in calculating the amount of allocations under this paragraph.

Upon determining the amount of each applicant's allocation, the agency shall forward
to the commissioner a list specifying the amounts allotted to each application with all
application fees and deposits from applicants who choose to have the agency issue bonds
on their behalf.

Total allocations from the housing pool for single-family housing programs may not
exceed 31 percent of the adjusted allocation to the housing pool until after July 15.

(e) The agency may issue bonds on behalf of participating cities. The agency shall request
an allocation from the commissioner for all applicants who choose to have the agency issue
bonds on their behalf and the commissioner shall allocate the requested amount to the
agency. The agency may request an allocation at any time after the second Tuesday in
January and through the last Monday in July. After awarding an allocation and receiving a
notice of issuance for the mortgage bonds issued on behalf of the participating cities, the
commissioner shall transfer the application deposits to the Minnesota Housing Finance
Agency to be returned to the participating cities. The Minnesota Housing Finance Agency
shall return any application deposit to a city that paid an application deposit under paragraph
(b), clause (4), but was not part of the list forwarded to the commissioner under paragraph
(d).

(f) A city may choose to issue bonds on its own behalf or through a joint powers
agreement and may request an allocation from the commissioner by forwarding an application
with an application fee pursuant to section 474A.03, subdivision 4, and a one percent
application deposit to the commissioner no later than the Monday of the week preceding
an allocation. If the total amount requested by all applicants exceeds the amount available
in the pool, the city may not receive a greater allocation than the amount it would have
received under the list forwarded by the Minnesota Housing Finance Agency to the
commissioner. No city may request or receive an allocation from the commissioner until
the list under paragraph (d) has been forwarded to the commissioner. A city must request
an allocation from the commissioner no later than the last Monday in July. No city may
receive an allocation from the housing pool for mortgage bonds which has not first applied
to the Minnesota Housing Finance Agency. The commissioner shall allocate the requested
amount to the city or cities subject to the limitations under this paragraph.

If a city issues mortgage bonds from an allocation received under this paragraph, the
issuer must provide for the recycling of funds into new loans. If the issuer is not able to
provide for recycling, the issuer must notify the commissioner in writing of the reason that
recycling was not possible and the reason the issuer elected not to have the Minnesota
Housing Finance Agency issue the bonds. "Recycling" means the use of money generated
from the repayment and prepayment of loans for further eligible loans or for the redemption
of bonds and the issuance of current refunding bonds.

(g) No entitlement city or county or city in an entitlement county may apply for or be
allocated authority to issue mortgage bonds or use mortgage credit certificates from the
housing pool. No city in an entitlement county may apply for or be allocated authority to
issue residential rental bonds from the housing pool or the unified pool.

(h) A city that does not use at least 50 percent of its allotment by the date applications
are due for the first allocation that is made from the housing pool for single-family housing
programs in the immediately succeeding calendar year may not apply to the housing pool
for a single-family mortgage bond or mortgage credit certificate program allocation that
exceeds the amount of its allotment for the preceding year that was used by the city in the
immediately preceding year or receive an allotment from the housing pool in the succeeding
calendar year that exceeds the amount of its allotment for the preceding year that was used
in the preceding year. The minimum allotment is $100,000 for an allocation made prior to
July 15, regardless of the amount used in the preceding calendar year, except that a city
whose allocation in the preceding year was the minimum amount of $100,000 and who did
not use at least 50 percent of its allocation from the preceding year is ineligible for an
allocation in the immediate succeeding calendar year. Each local government unit in a
consortium must meet the requirements of this paragraph.

Sec. 35.

Minnesota Statutes 2018, section 474A.091, subdivision 2, is amended to read:


Subd. 2.

Application.

new text begin(a) new text endIssuers may apply for an allocation under this section by
submitting to the department an application on forms provided by the department
accompanied bynew text begin:
new text end

(1) a preliminary resolutiondeleted text begin,deleted text endnew text begin;
new text end

(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Codedeleted text begin,deleted text endnew text begin;
new text end

(3) deleted text beginthe type of qualified bonds to be issued, (4)deleted text end an application deposit in the amount of
two percent of the requested allocationdeleted text begin, (5) a public purpose scoring worksheet for
manufacturing and enterprise zone applications, and (6) for residential rental projects, a
statement from the applicant or bond counsel as to whether the project preserves existing
federally subsidized housing and whether the project is restricted to persons who are 55
years of age or older.
deleted text endnew text begin; and
new text end

new text begin (4) a sworn statement from the applicant identifying the project as either a preservation
project, 30 percent AMI residential rental project, 50 percent AMI residential rental project,
100 percent LIHTC project, 20 percent LIHTC project, or any other residential rental project.
new text end

The issuer must pay the application deposit deleted text beginby checkdeleted text end new text beginto the Department of Management
and Budget
new text end. An entitlement issuer may not apply for an allocation for public facility bonds,
residential rental project bonds, or mortgage bonds under this section unless it has either
permanently issued bonds equal to the amount of its entitlement allocation for the current
year plus any amount carried forward from previous years or returned for reallocation all
of its unused entitlement allocation. For purposes of this subdivision, its entitlement allocation
includes an amount obtained under section 474A.04, subdivision 6.

new text begin (b) new text endNotwithstanding the restrictions imposed on entitlement issuers under this subdivision,
the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
under this section prior to the first Monday in October, but may be awarded allocations for
mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota
Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota
Rural Finance Authority may apply for and receive an allocation under this section without
submitting an application deposit.

Sec. 36.

Minnesota Statutes 2018, section 474A.091, subdivision 3, is amended to read:


Subd. 3.

Allocation procedure.

(a) The commissioner shall allocate available bonding
authority under this section on the Monday of every other week beginning with the first
Monday in August through and on the last Monday in November. Applications for allocations
must be received by the department by 4:30 p.m. on the Monday preceding the Monday on
which allocations are to be made. If a Monday falls on a holiday, the allocation will be made
or the applications must be received by the next business day after the holiday.

(b) Prior to October 1, only the following applications shall be awarded allocations from
the unified pool. Allocations shall be awarded in the following order of priority:

(1) applications for residential rental project bonds;

(2) applications for small issue bonds for manufacturing projects; and

(3) applications for small issue bonds for agricultural development bond loan projects.

(c) On the first Monday in October through the last Monday in November, allocations
shall be awarded from the unified pool in the following order of priority:

(1) applications for student loan bonds issued by or on behalf of the Minnesota Office
of Higher Education;

(2) applications for mortgage bonds;

(3) applications for public facility projects funded by public facility bonds;

(4) applications for small issue bonds for manufacturing projects;

(5) applications for small issue bonds for agricultural development bond loan projects;

(6) applications for residential rental project bonds;

(7) applications for enterprise zone facility bonds;

(8) applications for governmental bonds; and

(9) applications for redevelopment bonds.

(d) If there are two or more applications for manufacturing projects from the unified
pool and there is insufficient bonding authority to provide allocations for all manufacturing
projects in any one allocation period, the available bonding authority shall be awarded based
on the number of points awarded a project under section 474A.045 with those projects
receiving the greatest number of points receiving allocation first. If two or more applications
for manufacturing projects receive an equal amount of points, available bonding authority
shall be awarded by lot unless otherwise agreed to by the respective issuers.

(e) If there are two or more applications for enterprise zone facility projects from the
unified pool and there is insufficient bonding authority to provide allocations for all enterprise
zone facility projects in any one allocation period, the available bonding authority shall be
awarded based on the number of points awarded a project under section 474A.045 with
those projects receiving the greatest number of points receiving allocation first. If two or
more applications for enterprise zone facility projects receive an equal amount of points,
available bonding authority shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(f) If there are two or more applications for residential rental projects from the unified
pool and there is insufficient bonding authority to provide allocations for all residential
rental projects in any one allocation period, the available bonding authority shall be awarded
in the following order of priority: (1) deleted text beginprojects that preserve existing federally subsidized
housing; (2) projects that are not restricted to persons who are 55 years of age or older; and
(3)
deleted text endnew text begin preservation projects; (2) 30 percent AMI residential rental projects; (3) 50 percent AMI
residential rental projects; (4) 100 percent LIHTC projects; (5) 20 percent LIHTC projects;
and (6)
new text end other residential rental projects.new text begin If there are two or more applications for residential
rental projects at the same priority level and there is insufficient bonding authority to provide
allocations for all the projects in any one allocation period, available bonding authority shall
be randomly awarded by lot but only for projects that received the full amount of their
respective requested allocations. If a residential rental project does not receive any of its
requested allocation pursuant to this paragraph and the project applies in the future to the
housing pool or the unified pool for additional allocation of bonds, the project shall be fully
funded up to its original application request for bonding authority before any new project,
applying in the same allocation period, that has an equal priority shall receive bonding
authority.
new text end

(g) From the first Monday in August through the last Monday in November, $20,000,000
of bonding authority or an amount equal to the total annual amount of bonding authority
allocated to the small issue pool under section 474A.03, subdivision 1, less the amount
allocated to issuers from the small issue pool for that year, whichever is less, is reserved
within the unified pool for small issue bonds to the extent deleted text beginsuchdeleted text endnew text begin thenew text end amounts are available
within the unified pool.

(h) The total amount of allocations for mortgage bonds from the housing pool and the
unified pool may not exceed:

(1) $10,000,000 for any one city; or

(2) $20,000,000 for any number of cities in any one county.

(i) The total amount of allocations for student loan bonds from the unified pool may not
exceed $25,000,000 per year.

(j) If there is insufficient bonding authority to fund all projects within any qualified bond
category other than enterprise zone facility projects, manufacturing projects, and residential
rental projects, allocations shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(k) If an application is rejected, the commissioner must notify the applicant and return
the application deposit to the applicant within 30 days unless the applicant requests in writing
that the application be resubmitted.

(l) The granting of an allocation of bonding authority under this section must be evidenced
by issuance of a certificate of allocation.

Sec. 37. new text beginADVANCES TO THE MINNESOTA MANUFACTURED HOME
RELOCATION TRUST FUND.
new text end

new text begin (a) Until June 30, 2020, the Minnesota Housing Finance Agency or Department of
Management and Budget as determined by the commissioner of management and budget,
is authorized to advance up to $400,000 from state appropriations or other resources to the
Minnesota manufactured home relocation trust fund established under Minnesota Statutes,
section 462A.35, if the account balance in the Minnesota manufactured home relocation
trust fund is insufficient to pay the amounts claimed under Minnesota Statutes, section
327C.095, subdivision 13.
new text end

new text begin (b) The Minnesota Housing Finance Agency or Department of Management and Budget
shall be reimbursed from the Minnesota manufactured home relocation trust fund for any
money advanced by the agency under paragraph (a) to the fund. Approved claims for payment
to manufactured home owners shall be paid prior to the money being advanced by the agency
or the department to the fund.
new text end

Sec. 38. new text beginITASCA COUNTY LICENSE FEE INCREASE.
new text end

new text begin An owner or licensor of any interest in real property located in Itasca County is prohibited
from increasing a license fee except as provided in this section. The amount of any license
fee increase must not exceed ten percent of the fee charged in the preceding 12-month period
and an owner or licensor must not impose more than one license fee increase in any 12-month
period. For purposes of this section, a "license fee" means any fee paid by a licensee pursuant
to a license agreement granting the licensee permission to use, enter, or occupy an owner
or licensor's property.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day after the Itasca
County Board of Commissioners and its chief clerical officer timely complete their
compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, and applies to
license agreements entered into on or after that date.
new text end

ARTICLE 5

BROADBAND DEVELOPMENT

Section 1. new text beginBROADBAND DEVELOPMENT APPROPRIATIONS.
new text end

new text begin 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 "2020" and "2021" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively.
"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium"
is fiscal years 2020 and 2021.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2020
new text end
new text begin 2021
new text end

Sec. 2. new text beginDEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
new text end

new text begin $
new text end
new text begin 30,250,000
new text end
new text begin $
new text end
new text begin 250,000
new text end

new text begin (a) $250,000 each year is for the Broadband
Development Office.
new text end

new text begin (b) $30,000,000 the first year is for deposit in
the border-to-border broadband fund account
created under Minnesota Statutes, section
116J.396, and may be used for the purposes
provided in Minnesota Statutes, section
116J.395. This is a onetime appropriation.
new text end