SF 3154

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/04/2016 08:48am

A bill for an act
relating to forest resources; establishing a production incentive program for
the use of forest resources in the production of siding; providing a sales tax
exemption for siding production facility materials; appropriating money;
amending Minnesota Statutes 2014, section 297A.71, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapter 41A.

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

Section 1.

new text begin [41A.20] SIDING PRODUCTION INCENTIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Commissioner" means the commissioner of agriculture.
new text end

new text begin (c) "Forest resources" means raw wood logs and material primarily made up of
cellulose, hemicellulose, or lignin, or a combination of those ingredients.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

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

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

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

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

new text begin Subd. 3. new text end

new text begin Payment amounts; limits. new text end

new text begin (a) The commissioner shall make payments
to eligible producers of siding. The amount of the payment for each eligible producer's
annual production is $....... per 1,000 board feet of siding produced at a specific location
for ten years after the start of production.
new text end

new text begin (b) Total payments under this section to an eligible siding producer in a fiscal year
may not exceed the amount necessary for ... board feet of siding produced. Total payments
under this section to all eligible siding producers in a fiscal year may not exceed the
amount necessary for ... board feet of siding produced. The commissioner shall award
payments on a first-come, first-served basis within the limits of available funding.
new text end

new text begin (c) For purposes of this section, an entity that holds a controlling interest in more
than one siding facility is considered a single eligible producer.
new text end

new text begin Subd. 4. new text end

new text begin Forest resources requirements. new text end

new text begin Forest resources that come from land
parcels greater than 160 acres must be certified by the Forest Stewardship Council,
Sustainable Forestry Initiative, or 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 from the Minnesota logger education program or the equivalent, and
have a forest stewardship plan.
new text end

new text begin Subd. 5. new text end

new text begin Claims. new text end

new text begin (a) By the last day of October, January, April, and July, each
eligible siding producer shall file a claim for payment for siding production during the
preceding three calendar months. An eligible siding producer that files a claim under this
subdivision shall include a statement of the eligible producer's total board feet of siding
produced during the quarter covered by the claim. For each claim and statement of total
board feet of siding filed under this subdivision, the board feet of siding produced must
be examined by a certified public accounting firm with a valid permit to practice under
chapter 326A, in accordance with Statements on Standards for Attestation Engagements
established by the American Institute of Certified Public Accountants.
new text end

new text begin (b) The commissioner must issue payments by November 15, February 15, May 15,
and August 15. A separate payment must be made for each claim filed.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin A sum sufficient to make the payments required by this
section, not to exceed $4,000,000 in a fiscal year, is annually appropriated from the
general fund to the commissioner, and all money appropriated under this subdivision
is available until spent.
new text end

Sec. 2.

Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 49. new text end

new text begin Siding production facility materials. new text end

new text begin Building materials and supplies
for constructing a siding production facility that produces at least ... board feet of siding
are exempt. The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied, and then refunded in the manner provided in section 297A.75.
new text end