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Capital IconMinnesota Legislature

SF 4019

2nd Engrossment - 92nd Legislature (2021 - 2022) Posted on 06/22/2022 02:22pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 31.1 31.2 31.3
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42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20
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46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8
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52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18
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53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13
53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34
55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9
55.10 55.11 55.12 55.13 55.14 55.15
55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 56.1 56.2 56.3 56.4
56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16
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56.25 56.26 56.27 56.28 56.29 56.30 56.31 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14
57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27
57.28 57.29 57.30 57.31 57.32 57.33 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16
58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29
59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24
60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32
61.1 61.2 61.3 61.4 61.5 61.6
61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26
61.27 61.28 61.29 61.30 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14
62.15 62.16 62.17 62.18 62.19 62.20 62.21
62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 63.1 63.2
63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11
63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26
63.27
63.28 63.29 63.30 63.31 63.32 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8
64.9
64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34 67.35 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9
68.10
68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23
70.24
70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 71.1 71.2
71.3 71.4 71.5
71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 72.1 72.2 72.3
72.4 72.5
72.6

A bill for an act
relating to state government; establishing cooperative grants for farmers;
establishing an agricultural best management practices grant program; making
policy and technical changes to agricultural provisions; requiring reports;
appropriating money; establishing the broadband line extension program; extending
use of utility easements for broadband; appropriating money for the Minnesota
Housing Finance Agency supplemental budget; amending Minnesota Statutes
2020, sections 13.643, by adding a subdivision; 17.117, subdivisions 9, 9a, 10,
11, 11a; 18E.04, subdivision 4; 40A.18, subdivision 2; 41B.025, by adding a
subdivision; 116J.396, subdivision 2; 223.17, subdivisions 4, 6; 346.155,
subdivision 7; 462A.03, subdivision 13; 462A.05, by adding subdivisions; 462A.07,
subdivisions 9, 10, 14; 462A.2035, by adding a subdivision; 462A.204, subdivision
3; 462A.21, subdivision 4a; 462A.24; 462A.33, by adding a subdivision; 462A.36,
subdivision 4, by adding a subdivision; 462A.37, subdivision 4, by adding a
subdivision; 462A.38, subdivision 1; 462A.39, subdivisions 1, 2, 4, 5, 6, by adding
a subdivision; 471.9996, subdivision 1; 474A.061, subdivision 2a; 474A.091,
subdivision 3; Minnesota Statutes 2021 Supplement, sections 35.155, subdivision
14; 41A.21, subdivision 2; 462A.05, subdivision 14a; 462A.37, subdivision 5;
Laws 2021, First Special Session chapter 3, article 1, sections 2; 4; Laws 2021,
First Special Session chapter 8, article 6, section 1, subdivision 7; Laws 2021, First
Special Session chapter 10, article 1, section 7; proposing coding for new law in
Minnesota Statutes, chapters 12; 17; 116J; 462; 462A; repealing Minnesota Statutes
2020, section 471.9996, subdivision 2.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1.

Laws 2021, First Special Session chapter 3, article 1, section 2, is amended to
read:


Sec. 2. DEPARTMENT OF AGRICULTURE

Subdivision 1.

Total Appropriation

$
deleted text begin 59,303,000
deleted text end new text begin 60,163,000
new text end
$
deleted text begin 59,410,000
deleted text end new text begin 63,250,000
new text end
Appropriations by Fund
2022
2023
General
deleted text begin 58,904,000 deleted text end new text begin
59,764,000
new text end
deleted text begin59,011,000deleted text endnew text begin
62,851,000
new text end
Remediation
399,000
399,000

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

Subd. 2.

Protection Services

Appropriations by Fund
2022
2023
General
deleted text begin 19,384,000 deleted text end new text begin
19,734,000
new text end
deleted text begin 19,610,000 deleted text end new text begin
20,810,000
new text end
Remediation
399,000
399,000

(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.

(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 first
year appropriation may be spent to compensate
for livestock that were destroyed or crippled
during fiscal year 2021. 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 $5,000 each year
to reimburse expenses incurred by university
extension educators to provide fair market
values of destroyed or crippled livestock. If
the commissioner receives federal dollars to
pay claims for destroyed or crippled livestock,
an equivalent amount of this appropriation
may be used to reimburse nonlethal prevention
methods performed by federal wildlife services
staff.

(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 $10,000 of the appropriation
each year to reimburse expenses incurred by
the commissioner or the commissioner's
approved agent to investigate and resolve
claims, as well as for costs associated with
training for approved agents. The
commissioner may use up to $20,000 of the
appropriation each year to make grants to
producers for measures to protect stored crops
from elk damage.

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.

(d) new text begin$1,000,000 the second year is to reimburse
feed, veterinary, and other expenses incurred,
and offset revenue lost by owners of farmed
white-tailed deer registered under Minnesota
Statutes, section 35.155, due to movement
bans imposed by the commissioner of natural
resources in emergency rules between
December 2019 and December 2021. The
commissioner may use payments of up to
$5,000 on a first-come, first-served,
noncompetitive basis. In order to receive a
payment, a recipient must sign an attestation
of the value of the loss suffered. Grants must
be limited to the value of the loss or $5,000,
whichever is less. However, if funds remain
after payments have been made to all eligible
applicants, the commissioner shall make
additional payments on a pro rata basis. This
is a onetime appropriation and is available
until June 30, 2024. Beginning February 1,
2023, and annually thereafter until February
1, 2025, the commissioner must report on the
reimbursements under this section by county
to the legislative committees with jurisdiction
over agriculture finance.
new text end

new text begin (e) new text end$225,000 the first year and $225,000 the
second year are for additional funding for the
noxious weed and invasive plant program.

deleted text begin (e)deleted text endnew text begin (f)new text end $50,000 the first year is for additional
funding for the industrial hemp program for
IT development. This is a onetime
appropriation and is available until June 30,
2023.

deleted text begin (f)deleted text endnew text begin (g)new text end $110,000 the first year and $110,000
the second year are for additional meat and
poultry inspection services. The commissioner
is encouraged to seek inspection waivers,
matching federal dollars, and offer more online
inspections for the purposes under this
paragraph.

deleted text begin (g)deleted text endnew text begin (h)new text end $825,000 the first year and $825,000
the second year are to replace capital
equipment in the Department of Agriculture's
analytical laboratory.

deleted text begin (h)deleted text endnew text begin (i)new text end $274,000 the first year and $550,000
the second year are to maintain the current
level of service delivery.

new text begin (j) $200,000 the second year is for grants to
fund the Forever Green Agriculture Initiative
at the University of Minnesota and protect the
state's natural resources while increasing the
efficiency, profitability, and productivity of
Minnesota farmers by incorporating perennial
and winter annual crops into existing
agricultural practices. Up to 25 percent of the
appropriation may be used for equipment and
physical infrastructure to support breeding and
agronomic activities necessary to develop
perennial and winter annual crops. This is a
onetime appropriation and is available until
June 30, 2028.
new text end

new text begin (k) $350,000 in the first year is for a grant to
the Board of Regents of the University of
Minnesota to purchase equipment for the
Veterinary Diagnostic Laboratory to test for
chronic wasting disease, African swine fever,
avian influenza, and other animal diseases.
This is a onetime appropriation.
new text end

Subd. 3.

Agricultural Marketing and
Development

4,200,000
deleted text begin 4,205,000
deleted text end new text begin 4,215,000
new text end

(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, 2023, for Minnesota grown grants in this
paragraph are available until June 30, 2025.

(b) $50,000 the first year is to expand
international marketing opportunities for
farmers and value-added processors, including
in-market representation in Taiwan. This is a
onetime appropriation and is available until
June 30, 2023.

(c) $634,000 the first year and $634,000 the
second year are for continuation of the dairy
development and profitability enhancement
programs including dairy profitability teams
and dairy business planning grants under
Minnesota Statutes, section 32D.30.

(d) $50,000 the first year and $50,000 the
second year are for additional funding for
mental health outreach and support to farmers
and others in the agricultural community,
including a 24-hour hotline, stigma reduction,
and educational offerings. These are onetime
appropriations.

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

(f) $100,000 the first year and $100,000 the
second year are for the farm safety grant and
outreach programs under Minnesota Statutes,
section 17.1195. new text beginNotwithstanding Minnesota
Statutes, section 16A.28, any unencumbered
balance does not cancel at the end of the first
year and is available in the second year.
new text endThese
are onetime appropriations.

(g) $54,000 the first year and $109,000 the
second year are to maintain the current level
of service delivery.

new text begin (h) $10,000 the second year is appropriated
from the general fund to the commissioner of
agriculture to study and report on the state of
regional and local food systems in Minnesota,
including recommendations for strengthening
these systems. No later than February 1, 2023,
the commissioner must submit the report to
the legislative committees with jurisdiction
over agriculture policy and finance. This is a
onetime appropriation.
new text end

Subd. 4.

Agriculture, Bioenergy, and Bioproduct
Advancement

25,343,000
deleted text begin 25,357,000 deleted text end new text begin
26,057,000
new text end

(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: at least $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); $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; $350,000 the
first year and $350,000 the second year are
for potato breeding; and $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/research associate
plant breeder. 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. Of the amount
transferred to the Board of Regents, up to
$1,000,000 each year is for research on avian
influenza, salmonella, and other turkey-related
diseases. By January 15, 2023, entities
receiving grants for potato breeding and wild
rice breeding are requested to report to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture and higher education regarding the
use of the grant money and to provide an
update on the status of research and related
accomplishments.

To the extent practicable, money expended
under Minnesota Statutes, section 41A.14,
subdivision 1
, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to one percent of this appropriation for
costs incurred to administer the program.

(b) $16,028,000 the first year and deleted text begin$16,028,000deleted text endnew text begin
$16,728,000
new text end the second year are for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate the appropriation
each year among the following areas:
facilitating the start-up, modernization,
improvement, or expansion of livestock
operations including beginning and
transitioning livestock operations with
preference given to robotic dairy-milking
equipment; providing funding not to exceed
$800,000 each year to develop and enhance
farm-to-school markets for Minnesota farmers
by providing more fruits, vegetables, meat,
grain, and dairy for Minnesota children in
school and child care settings including, at the
commissioner's discretion, reimbursing
schools for purchases from local farmers;
assisting value-added agricultural businesses
to begin or expand, to access new markets, or
to diversify, including aquaponics systems;
providing funding not to exceed $600,000
each year for urban youth agricultural
education or urban agriculture community
development of which $10,000 each year is
for transfer to the emerging farmer account
under Minnesota Statutes, section 17.055,
subdivision 1a
; providing funding not to
exceed $450,000 each year for 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; sustainable agriculture
on-farm research and demonstration;
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

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

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

(2) $4,500,000 the first year and $4,500,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, 41A.18, and 41A.20. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2023, and the second year appropriation is
available until June 30, 2024. 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 other purposes under this
paragraph;

(3) $3,000,000 the first year and $3,000,000
the second year are for grants that enable retail
petroleum dispensers, fuel storage tanks, and
other equipment to dispense biofuels to the
public in accordance with the biofuel
replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than 10 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money must be used to
replace or upgrade equipment that does not
have the ability to be certified for E25. A grant
award must not exceed 65 percent of the cost
of the appropriate technology. A grant award
must not exceed $200,000 per station. The
commissioner must cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner, in cooperation
with any economic or community development
financial institution and any other entity with
which it contracts, must submit a report on the
biofuels infrastructure financial assistance
program by January 15 of each year to the
chairs and ranking minority members of the
legislative committees and divisions with
jurisdiction over agriculture policy and
finance. The annual report must include but
not be limited to a summary of the following
metrics: (i) the number and types of projects
financed; (ii) the amount of dollars leveraged
or matched per project; (iii) the geographic
distribution of financed projects; (iv) any
market expansion associated with upgraded
infrastructure; (v) the demographics of the
areas served; (vi) the costs of the program;
and (vii) the number of grants to
minority-owned or female-owned businesses;

(4) $750,000 the first year and deleted text begin$750,000deleted text endnew text begin
$1,450,000
new text end the second year are for grants to
facilitate the start-up, modernization, or
expansion of meat, poultry, egg, and milk
processing facilities. A grant award under this
clause must not exceed $200,000. Any
unencumbered balance at the end of the second
year does not cancel until June 30, 2024, and
may be used for other purposes under this
paragraph. The appropriations under this
clause are onetime; and

(5) $1,400,000 the first year and $1,400,000
the second year are for livestock investment
grants under Minnesota Statutes, section
17.118. Any unencumbered balance at the end
of the second year does not cancel until June
30, 2024, and may be used for other purposes
under this paragraph. The appropriations under
this clause are onetime.

Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available for the second year, and
appropriations encumbered under contract on
or before June 30, 2023, for agricultural
growth, research, and innovation grants are
available until June 30, 2026.

The base amount for the agricultural growth,
research, and innovation program is
$16,053,000 in fiscal year 2024 and
$16,053,000 in fiscal year 2025, and includes
funding for incentive payments under
Minnesota Statutes, sections 41A.16, 41A.17,
41A.18, and 41A.20.

(c) $15,000 the first year and $29,000 the
second year are to maintain the current level
of service delivery.

Subd. 5.

Administration and Financial
Assistance

deleted text begin 9,977,000
deleted text end new text begin 10,487,000
new text end
deleted text begin 9,839,000 deleted text end new text begin
11,769,000
new text end

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

(b) $387,000 the first year and $337,000 the
second year are for farm advocate services.
Of these amounts, $100,000 the first year and
$50,000 the second year are for a pilot
program creating farmland access teams to
provide technical assistance to potential
beginning farmers. The farmland access teams
must assist existing farmers and beginning
farmers on transitioning farm ownership and
operation. Services provided by teams may
include but are not limited to providing
mediation assistance, designing contracts,
financial planning, tax preparation, estate
planning, and housing assistance. Of this
amount for farm transitions, up to $50,000 the
first year may be used to upgrade the
Minnesota FarmLink web application that
connects farmers looking for land with farmers
looking to transition their land.

(c) $47,000 the first year and $47,000 the
second year are for grants to the Northern
Crops Institute that may be used to purchase
equipment. These are onetime appropriations.

(d) $238,000 the first year and $238,000 the
second year are for deleted text begintransfer to the Board of
Trustees of the Minnesota State Colleges and
Universities
deleted text endnew text begin a pass-through grant to Region
Five Development Commission, in
collaboration with Minnesota Farm Business
Management: (1)
new text end for statewide mental health
counseling support to deleted text beginfarm families and
business operators through the Minnesota State
Agricultural Centers of Excellence. South
Central College and Central Lakes College
shall serve as the fiscal agents
deleted text endnew text begin Minnesota farm
and ranch operators, families, and employees;
and (2) for support to individuals who work
with Minnesota farmers and ranchers in a
professional capacity
new text end.

(e) $1,700,000 the first year and $1,700,000
the second year are for grants to Second
Harvest Heartland on behalf of Minnesota's
six Feeding America food banks for the
following:

(1) to purchase 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. 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 that receives funding
under this clause may use up to two percent
for administrative expenses;

(2) 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 clause
must be from Minnesota producers and
processors. Second Harvest Heartland may
use up to 15 percent of each grant awarded
under this clause for administrative and
transportation expenses; and

(3) to purchase and distribute protein products,
including but not limited to pork, poultry, beef,
dry legumes, cheese, and eggs to Minnesota's
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Second Harvest Heartland may use up
to two percent of each grant awarded under
this clause for administrative expenses. Protein
products purchased under the grants must be
acquired from Minnesota processors and
producers.

Of the amount appropriated under this
paragraph, at least $600,000 each year must
be allocated under clause (1). Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance the first year does not
cancel and is available in the second year.
Second Harvest Heartland must submit
quarterly reports to the commissioner and the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture finance in the form prescribed by
the commissioner. The reports must include
but are not limited to information on the
expenditure of funds, the amount of milk or
other commodities purchased, and the
organizations to which this food was
distributed.

(f) $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.

(g) $1,437,000 the first year and $1,437,000
the second year are for transfer to the
agricultural and environmental revolving loan
account established under Minnesota Statutes,
section 17.117, subdivision 5a, for low-interest
loans under Minnesota Statutes, section
17.117. The base for appropriations under this
paragraph in fiscal year 2024 and thereafter
is $1,425,000. The commissioner must
examine how the department could use up to
one-third of the amount transferred to the
agricultural and environmental revolving loan
account under this paragraph to award grants
to rural landowners to replace septic systems
that inadequately protect groundwater. No
later than February 1, 2022, the commissioner
must report to the legislative committees with
jurisdiction over agriculture finance and
environment finance on the results of the
examination required under this paragraph.
The commissioner's report may include other
funding sources for septic system replacement
that are available to rural landowners.

(h)new text begin $50,000 the second year is for the
agriculture best management practices grant
program under Minnesota Statutes, section
17.1162. This is a onetime appropriation.
new text end

new text begin (i)new text end $150,000 the first year and $150,000 the
second year are for grants to the Center for
Rural Policy and Development. These are
onetime appropriations.

deleted text begin (i)deleted text endnew text begin (j)new text end $150,000 the first year is to provide
grants to Central Lakes College for the
purposes of designing, building, and offering
credentials in the area of meat cutting and
butchery that align with industry needs as
advised by local industry advisory councils.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available for the second year. The
commissioner may only award a grant under
this paragraph if the grant is matched by a like
amount from another funding source. The
commissioner must seek matching dollars
from Minnesota State Colleges and
Universities or other entities. The
appropriation is onetime and is available until
June 30, 2024. Any money remaining on June
30, 2024, must be transferred to the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12, and is available until June 30, 2025.
Grants may be used for costs including but
not limited to:

(1) facility renovation to accommodate meat
cutting;

(2) curriculum design and approval from the
Higher Learning Commission;

(3) program operational start-up costs;

(4) equipment required for a meat cutting
program; and

(5) meat handling start-up costs in regard to
meat access and market channel building.

No later than January 15, 2023, Central Lakes
College must submit a report outlining the use
of grant money to the chairs and ranking
minority members of the legislative
committees and divisions with jurisdiction
over agriculture and higher education.

deleted text begin (j)deleted text endnew text begin (k)new text end $2,000 the first year is for grants to the
Minnesota State Poultry Association. This is
a onetime appropriation. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

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

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

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

deleted text begin (n)deleted text endnew text begin (o)new text end $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.

deleted text begin (o)deleted text endnew text begin (p)new text end $75,000 the first year and $75,000 the
second year are for grants to Greater Mankato
Growth, Inc., for assistance to
agriculture-related businesses to promote jobs,
innovation, and synergy development. These
are onetime appropriations.

deleted text begin (p)deleted text endnew text begin (q)new text end $75,000 the first year and $75,000 the
second year are for grants to the Minnesota
Turf Seed Council for basic and applied
research. The Minnesota Turf Seed Council
may subcontract with a qualified third party
for some or all of the basic or applied research.
No later than January 15, 2023, the Minnesota
Turf Seed Council must submit a report
outlining the use of the grant money and
related accomplishments to the chairs and
ranking minority members of the legislative
committees with jurisdiction over agriculture.
These are onetime appropriations. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

deleted text begin (q)deleted text endnew text begin (r)new text end $150,000 the first year and $150,000
the second year are to establish an emerging
farmer office and hire a full-time emerging
farmer outreach coordinator. The emerging
farmer outreach coordinator must engage and
support emerging farmers regarding resources
and opportunities available throughout the
Department of Agriculture and the state. For
purposes of this paragraph, "emerging farmer"
has the meaning provided in Minnesota
Statutes, section 17.055, subdivision 1. Of the
amount appropriated each year, $25,000 is for
translation services for farmers and cottage
food producers.

deleted text begin (r)deleted text endnew text begin (s)new text end $222,000 the first year and $286,000
the second year are to maintain the current
level of service delivery.

new text begin (t) $1,000,000 the second year is to provide
grants to secondary career and technical
education programs for the purpose of offering
instruction in meat cutting and butchery. This
is a onetime appropriation. Grants may be used
for costs, including but not limited to:
new text end

new text begin (1) equipment required for a meat cutting
program;
new text end

new text begin (2) facility renovation to accommodate meat
cutting; and
new text end

new text begin (3) training faculty to teach the fundamentals
of meat processing.
new text end

new text begin The commissioner may receive applications
from eligible programs and make grants of up
to $100,000, up to ten percent of which may
be used for training faculty.
new text end

new text begin Priority may be given to applicants who are
coordinating with meat cutting and butchery
programs at Minnesota State Colleges and
Universities system and local industry
partners.
new text end

new text begin (u) $50,000 the second year is for grants to
organizations in Minnesota to develop
enterprises, supply chains, markets for
continuous living cover crops and cropping
systems in the early stage of commercial
development, Kernza perennial grain, winter
camelina, hybrid hazelnuts, and elderberry. A
multiyear project may receive grant money
for up to three years. This is a onetime
appropriation and is available until June 30,
2027.
new text end

new text begin In consultation with interested stakeholders,
the commissioner must develop a process to
award grants. At the time of application, the
commissioner must provide to the applicant
information about requirements for grant
recipients. The commissioner must appoint a
technical review panel to review and rank
eligible applicants and give preference to
applicants that are well-positioned to expand
the profitable commercialization of the Kernza
perennial grain, winter camelina, hybrid
hazelnuts, and elderberry. The technical
review panel must include at least one
representative from the Forever Green
Initiative and one representative from the
Agricultural Utilization Research Institute.
The commissioner must consider the technical
review panel recommendations when selecting
grant recipients.
new text end

new text begin Beginning February 1, 2023, and annually
thereafter until February 1, 2028, the
commissioner shall submit a report on the
utilization of the grants to the chairs and
ranking minority members of the legislative
committees and divisions with jurisdiction
over agriculture policy and finance.
new text end

new text begin (v) $10,000 the first year is to provide
technical assistance and leadership in the
development of a comprehensive and
well-documented state aquaculture plan. The
commissioner must provide the state
aquaculture plan to the legislative committees
with jurisdiction over agriculture finance and
policy by February 15, 2023. This is a onetime
appropriation.
new text end

new text begin (w) $500,000 the second year is for continuing
construction of the soybean processing and
research facility at the Ag Innovation Campus.
This is a onetime appropriation and is
available until December 31, 2026.
new text end

new text begin (x) $30,000 the second year is for grants or
other forms of financial assistance to meat and
poultry processors for reimbursing the cost of
attending courses or training and receiving
technical assistance in fiscal year 2023 that
support developing sanitation standard
operating procedures, hazard analysis and
critical control points plans, or business plans.
A meat processor with 50 full-time equivalent
employees or less is eligible for grant money
under this paragraph. This is a onetime
appropriation.
new text end

new text begin (y) $500,000 the first year is for transfer to the
agricultural emergency account established
under Minnesota Statutes, section 17.041.
new text end

new text begin Notwithstanding Minnesota Statutes, section
17.041, the commissioner may spend money
from the agricultural emergency account for
the purposes of avian influenza testing
supplies, including but not limited to poultry
drinking water tests. This paragraph expires
on December 31, 2022.
new text end

new text begin (z) $300,000 the second year is for grants to
organizations to provide technical assistance
and culturally appropriate services to emerging
farmers with preference given to organizations
that serve African immigrants and refugees
and African-American populations. This is a
onetime appropriation. No later than January
15, 2024, the commissioner must report grant
activity and outcomes to the legislative
committees with jurisdiction over agriculture
finance.
new text end

Sec. 2.

Laws 2021, First Special Session chapter 3, article 1, section 4, is amended to read:


Sec. 4. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE

$
4,543,000
$
deleted text begin 4,043,000 deleted text end new text begin
4,343,000
new text end

(a) $150,000 the first year and $150,000 the
second year are for a meat scientist.

(b) $500,000 the first year is for grants to
organizations to acquire, host, and operate a
mobile slaughter unit. The mobile unit must
coordinate with Minnesota state two-year
colleges that have meat cutting programs to
accommodate training as it relates to animal
slaughter. The mobile unit may coordinate
with livestock producers who desire to provide
value-added meat products by utilizing the
mobile slaughter unit. The mobile unit may
be used for research, training outside of the
two-year colleges, and other activities that
align with industry needs. The Agricultural
Utilization Research Institute may only award
a grant under this paragraph if the grant
amount is matched by a like amount from
another funding source. The Agricultural
Utilization Research Institute must seek
matching dollars from Minnesota State
Colleges and Universities or other entities for
purposes of this paragraph. The appropriation
under this paragraph is onetime and is
available until June 30, 2024. Any money
remaining on June 30, 2024, must be
transferred to the commissioner of agriculture
for the agricultural growth, research, and
innovation program under Minnesota Statutes,
section 41A.12, and is available until June 30,
2025. By January 15, 2023, the institute must
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture regarding the
status of the project, including the status of
the use of any state or matching dollars to
complete the project.

new text begin (c) $300,000 the second year is for equipment
upgrades, equipment replacement, installation
expenses, and laboratory infrastructure at
laboratories in Crookston, Marshall, and
Waseca, Minnesota. This is a onetime
appropriation and is available until June 30,
2026.
new text end

ARTICLE 2

BROADBAND APPROPRIATIONS

Section 1.

Laws 2021, First Special Session chapter 10, article 1, section 7, is amended
to read:


Sec. 7. BROADBAND DEVELOPMENT; APPLICATION FOR FEDERAL
FUNDING; APPROPRIATION.

(a) The commissioner of employment and economic development must prepare and
submit an application to the United States Department of the Treasury requesting that
$70,000,000 of Minnesota's capital projects fund allocation under Public Law 117-2 be
awarded to the state. The commissioner must submit the application required under this
paragraph by the later of September 30, 2021, or 90 days after the date on which the United
States Department of the Treasury begins accepting capital projects fund applications. The
commissioner must specify in the application that the award will be used for grants deleted text beginanddeleted text endnew text begin that
satisfy
new text end the purposes specified under Minnesota Statutes, section 116J.395.

(b) Of the amount awarded to the state of Minnesota pursuant to the application required
in paragraph (a), notwithstanding Minnesota Statutes, sections 3.3005 and 4.07, 50 percent
in fiscal year 2022 and 50 percent in fiscal year 2023 are appropriated to the commissioner
of employment and economic development. This is a onetime appropriation and must be
used for grants deleted text beginanddeleted text endnew text begin that satisfynew text end the purposes specified under Minnesota Statutes, section
116J.395.new text begin All money awarded under this section must be spent by December 31, 2026.
new text end

(c) The commissioner of employment and economic development may temporarily
modify program standards under Minnesota Statutes, section 116J.395, to the degree
necessary to comply with federal standards for funding received under this section.

Sec. 2. new text beginLOWER POPULATION DENSITY PILOT PROGRAM.
new text end

new text begin (a) The commissioner of employment and economic development must establish a pilot
program to provide broadband service to unserved and underserved areas, as defined in
Minnesota Statutes, section 116J.394, of the state where a 50 percent match formula is not
adequate to make a business case for the extension of broadband facilities. Grants awarded
under this section shall adhere to all other requirements of Minnesota Statutes, section
116J.395, subdivisions 1 to 6, and may fund up to 75 percent of the total cost of a project,
notwithstanding Minnesota Statutes section 116J.395, subdivision 7. Grants awarded to a
single project under this section may not exceed $5,000,000.
new text end

new text begin (b) The commissioner of employment and economic development may use up to
$15,000,000 from the appropriations in sections 3 and 4 for the lower population density
pilot program under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text beginBROADBAND DEVELOPMENT; APPLICATION FOR FEDERAL
FUNDING; APPROPRIATION.
new text end

new text begin (a) The commissioner of employment and economic development must prepare and
submit a grant plan application to the United States Department of the Treasury requesting
that $110,703,000 of Minnesota's capital projects fund allocation under Public Law 117-2
be used for grants that satisfy the purposes specified under Minnesota Statutes, section
116J.395, and sections 2, 5, and 6 of this article. The commissioner must submit the
application required under this paragraph by September 24, 2022.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, sections 3.3005 and 4.07, the amount awarded
to Minnesota pursuant to the application required in paragraph (a) is appropriated to the
commissioner of employment and economic development. This appropriation (1) must be
used only for grants that satisfy the purposes specified under Minnesota Statutes, section
116J.395, and sections 2, 5, and 6 of this article, and (2) is available until December 31,
2026.
new text end

new text begin (c) The commissioner of employment and economic development may temporarily
modify program standards under Minnesota Statutes, section 116J.395, and sections 2, 5,
and 6 of this article to the extent necessary to comply with federal standards that apply to
funding received under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4. new text beginBROADBAND DEVELOPMENT; APPROPRIATION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, sections 3.3005 and 4.07, if Minnesota receives
federal money for broadband development under Public Law 117-58, the Infrastructure
Investment and Jobs Act, the money is appropriated to the commissioner of economic
development for grants that satisfy the purposes specified under Minnesota Statutes, section
116J.395, and sections 2, 5, and 6 of this article.
new text end

new text begin (b) The commissioner of employment and economic development may temporarily
modify program standards under Minnesota Statutes, section 116J.395, and sections 2, 5,
and 6 of this article to the extent necessary to comply with federal standards that apply to
funding received under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text beginBROADBAND LINE EXTENSION PROGRAM; APPROPRIATION.
new text end

new text begin The commissioner of employment and economic development may use up to $15,000,000
from the appropriations in sections 3 and 4 for the broadband line extension program in
Minnesota Statutes, section 116J.3951.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6. new text beginBROADBAND; MAPPING.
new text end

new text begin The commissioner of employment and economic development may use up to $15,000,000
from the appropriations in sections 3 and 4 for comprehensive statewide mapping if the
commissioner determines that comprehensive statewide mapping is an eligible expense
under federal law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 3

AGRICULTURE AND RURAL DEVELOPMENT POLICY

Section 1.

Minnesota Statutes 2020, section 13.643, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Mental or behavioral health data. new text end

new text begin (a) The following data collected and
maintained by the Department of Agriculture, Minnesota State Colleges and Universities,
and any other pass-through recipients about any individual who seeks assistance with a
mental or behavioral health issue or who contacts the Minnesota Farm and Rural Helpline
are private or nonpublic data:
new text end

new text begin (1) data that identify the individual; and
new text end

new text begin (2) data provided by the individual identifying another person.
new text end

new text begin (b) The Department of Agriculture, Minnesota State Colleges and Universities, and any
other pass-through recipients may release data collected under this subdivision to appropriate
parties in connection with an emergency if knowledge of the data is necessary to protect
the health or safety of any person.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [17.1016] COOPERATIVE GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section:
new text end

new text begin (1) "agricultural commodity" and "agricultural product processing facility" have the
meanings given in section 17.101, subdivision 5; and
new text end

new text begin (2) "agricultural service" means an action made under the direction of a farmer that
provides value to another entity. Agricultural service includes grazing to manage vegetation.
new text end

new text begin Subd. 2. new text end

new text begin Grant program. new text end

new text begin (a) The commissioner may establish and implement a grant
program to help farmers finance new cooperatives that organize for purposes of operating
an agricultural product processing facility or marketing an agricultural product or agricultural
service.
new text end

new text begin (b) To be eligible for this program, a grantee must:
new text end

new text begin (1) be a cooperative organized under chapter 308A;
new text end

new text begin (2) certify that all control and equity in the cooperative is from farmers, family farm
partnerships, family farm limited liability companies, or family farm corporations as defined
in section 500.24, subdivision 2, who are actively engaged in agricultural commodity
production;
new text end

new text begin (3) be operated primarily to process agricultural commodities or market agricultural
products or services produced in Minnesota; and
new text end

new text begin (4) receive agricultural commodities produced primarily by shareholders or members
of the cooperative.
new text end

new text begin (c) The commissioner may receive applications and make grants up to $50,000 to eligible
grantees for feasibility, marketing analysis, assistance with organizational development,
financing and managing new cooperatives, product development, development of business
and marketing plans, and predesign of facilities, including site analysis, the development
of bid specifications, preliminary blueprints and schematics, and the completion of purchase
agreements and other necessary legal documents.
new text end

new text begin (d) Grants must be matched dollar-for-dollar with other money or in-kind contributions.
new text end

new text begin (e) State funds must not be used for grants.
new text end

Sec. 3.

new text begin [17.1162] AGRICULTURE BEST MANAGEMENT PRACTICES GRANT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of agriculture must establish and
administer a grant program to support healthy soil management practices in accordance
with this section.
new text end

new text begin Subd. 2. new text end

new text begin State healthy soil management plan. new text end

new text begin The commissioner must develop a
healthy soil management plan in consultation with the University of Minnesota, the United
States Department of Agriculture Natural Resources Conservation Service, the Board of
Water and Soil Resources, the Minnesota Pollution Control Agency, and nongovernmental
environmental and agricultural organizations. By December 31, 2023, and every two years
thereafter, the commissioner must report the plan to the governor and to the chairs and
ranking minority members of the house of representatives and senate committees and
divisions with jurisdiction over agriculture and the environment and natural resources. The
plan must include all of the following:
new text end

new text begin (1) an assessment of the current state of healthy soil management practices statewide;
new text end

new text begin (2) a statewide five- and ten-year goal for healthy soil management practice
implementation, denominated in acres;
new text end

new text begin (3) an explanation of how the commissioner will make grant award decisions based on
the eligibility categories described in subdivision 3;
new text end

new text begin (4) an explanation of how the commissioner will ensure a geographically fair distribution
of funding across a broad group of crop types, soil management practices, and farm sizes;
new text end

new text begin (5) a strategy for leveraging other public and private sources of money to expand healthy
soil management practices in the state;
new text end

new text begin (6) a summary of the operations of the program during the previous two-year period,
including a summary of state, federal, and private money spent, the total number of projects
and acres, and an estimate of carbon sequestered or carbon emissions reduced during that
period; and
new text end

new text begin (7) any other matter that the commissioner deems relevant.
new text end

new text begin Subd. 3. new text end

new text begin Eligible projects. new text end

new text begin The commissioner may award a grant under this section for
any project on agricultural land in Minnesota that will:
new text end

new text begin (1) increase the quantity of organic carbon in soil through practices, including but not
limited to reduced tillage, cover cropping, manure management, precision agriculture, crop
rotations, and changes in grazing management;
new text end

new text begin (2) integrate perennial vegetation into the management of agricultural lands;
new text end

new text begin (3) reduce nitrous oxide and methane emissions through changes to livestock, soil
management, or nutrient optimization;
new text end

new text begin (4) increase the usage of precision agricultural practices;
new text end

new text begin (5) enable the development of site-specific management plans; or
new text end

new text begin (6) enable the purchase of equipment, technology, subscriptions, technical assistance,
seeds, seedlings, or amendments that will further any of the purposes in clauses (1) to (5).
new text end

new text begin Subd. 4. new text end

new text begin Grant eligibility. new text end

new text begin Any land owner or lessee may apply for a grant under this
section.
new text end

new text begin Subd. 5. new text end

new text begin Funding limitations. new text end

new text begin Every appropriation for the agriculture best management
practices grant program is subject to the following limitations:
new text end

new text begin (1) the commissioner may award no more than ten percent of the appropriation to a
single recipient; and
new text end

new text begin (2) the commissioner may use no more than five percent of the appropriation to cover
the costs of administering the program.
new text end

Sec. 4.

Minnesota Statutes 2020, section 17.117, subdivision 9, is amended to read:


Subd. 9.

Allocation rescission.

(a) Continued availability of allocations granted to a
local government unit is contingent upon the commissioner's approval of the local
government unit's annual report. The commissioner shall review this annual report to ensure
that the past and future uses of the funds are consistent with the comprehensive water
management plan, other local planning documents, the requirements of the funding source,
and compliance to program requirements. If the commissioner concludes the past or intended
uses of the money are not consistent with these requirements, the commissioner shall rescind
all or part of the allocation awarded to a local government unit.

(b) The commissioner may rescind funds allocated to the local government unit that are
not designated to committed projects or disbursed within one year from the date of the
allocation agreement.

(c) deleted text beginAn additional year to use the undisbursed portion of an allocation may be granted
by the commissioner under extenuating circumstances
deleted text endnew text begin The commissioner may rescind
uncommitted allocations
new text end.

Sec. 5.

Minnesota Statutes 2020, section 17.117, subdivision 9a, is amended to read:


Subd. 9a.

Authority and responsibilities of local government units.

(a) A local
government unit that enters into an allocation agreement with the commissioner:

(1) is responsible for the local administration and implementation of the program in
accordance with this section;

(2) may submit applications for allocations to the commissioner;

(3) shall identify, develop, determine eligibility, define and approve projects, designate
maximum loan amounts for projects, and certify completion of projects implemented under
this program. In areas where no local government unit has applied for funds under this
program, the commissioner may appoint a local government unit to review and certify
projects or the commissioner may assume the authority and responsibility of the local
government unit;

(4) shall certify as eligible only projects that are within its geographic jurisdiction or
within the geographic area identified in its local comprehensive water management plans
or other local planning documents;

(5) may require withholding by the local lender of all or a portion of the loan to the
borrower until satisfactory completion of all required components of a certified project;

deleted text begin (6) must identify which account is used to finance an approved project if the local
government unit has allocations from multiple accounts in the agricultural and environmental
revolving accounts;
deleted text end

deleted text begin (7)deleted text endnew text begin (6)new text end shall report to the commissioner annually the past and intended uses of allocations
awarded; and

deleted text begin (8)deleted text endnew text begin (7)new text end may request additional funds in excess of their allocation when funds are available
in the agricultural and environmental revolving accounts, as long as all other allocation
awards to the local government unit have been used or committed.

(b) If a local government unit withdraws from participation in this program, the local
government unit, or the commissioner in accordance with the priorities established under
subdivision 6a, may designate another local government unit that is eligible under subdivision
6 as the new local government unit responsible for local administration of this program.
This designated local government unit may accept responsibility and administration of
allocations awarded to the former responsible local government unit.

Sec. 6.

Minnesota Statutes 2020, section 17.117, subdivision 10, is amended to read:


Subd. 10.

Authority and responsibilities of local lenders.

(a) Local lenders may enter
into lender agreements with the commissioner.

(b) Local lenders may enter into loan agreements with borrowers to finance eligible
projects under this section.

deleted text begin (c) The local lender shall notify the local government unit of the loan amount issued to
the borrower after the closing of each loan.
deleted text end

deleted text begin (d)deleted text endnew text begin (c)new text end Local lenders with local revolving loan accounts created before July 1, 2001,
may continue to retain and use those accounts in accordance with their lending agreements
for the full term of those agreements.

deleted text begin (e)deleted text endnew text begin (d)new text end Local lenders, including local government units designating themselves as the
local lender, may enter into participation agreements with other lenders.

deleted text begin (f)deleted text endnew text begin (e)new text end Local lenders may enter into contracts with other lenders for the limited purposes
of loan review, processing and servicing, or to enter into loan agreements with borrowers
to finance projects under this section. Other lenders entering into contracts with local lenders
under this section must meet the definition of local lender in subdivision 4, must comply
with all provisions of the lender agreement and this section, and must guarantee repayment
of the loan funds to the local lender.

deleted text begin (g)deleted text endnew text begin (f)new text end When required by the local government unit, a local lender must withhold all or
a portion of the loan disbursement for a project until notified by the local government unit
that the project has been satisfactorily completed.

deleted text begin (h)deleted text endnew text begin (g)new text end The local lender is responsible for repaying all funds provided by the commissioner
to the local lender.

deleted text begin (i)deleted text endnew text begin (h)new text end The local lender is responsible for collecting repayments from borrowers. If a
borrower defaults on a loan issued by the local lender, it is the responsibility of the local
lender to obtain repayment from the borrower. Default on the part of borrowers shall have
no effect on the local lender's responsibility to repay its obligations to the commissioner
whether or not the local lender fully recovers defaulted amounts from borrowers.

deleted text begin (j)deleted text endnew text begin (i)new text end The local lender shall provide sufficient collateral or protection to the commissioner
for the funds provided to the local lender. The commissioner must approve the collateral
or protection provided.

Sec. 7.

Minnesota Statutes 2020, section 17.117, subdivision 11, is amended to read:


Subd. 11.

Loans issued to borrower.

(a) Local lenders may issue loans only for projects
that are approved and certified by the local government unit as meeting priority needs
identified in a comprehensive water management plan or other local planning documents,
are in compliance with accepted practices, standards, specifications, or criteria, and are
eligible for financing under Environmental Protection Agency or other applicable guidelines.

(b) The local lender may use any additional criteria considered necessary to determine
the eligibility of borrowers for loans.

(c) Local lenders shall set the terms and conditions of loans to borrowers, except thatdeleted text begin:
deleted text end

deleted text begin (1) no loan to a borrower may exceed $200,000; and
deleted text end

deleted text begin (2)deleted text end no borrower shall, at any time, have deleted text beginmultipledeleted text end loans from this program with a total
outstanding loan balance of more than $200,000.

(d) The maximum term length for projects in this paragraph is ten years.

(e) Fees charged at the time of closing must:

(1) be in compliance with normal and customary practices of the local lender;

(2) be in accordance with published fee schedules issued by the local lender;

(3) not be based on participation program; and

(4) be consistent with fees charged other similar types of loans offered by the local
lender.

(f) The interest rate assessed to an outstanding loan balance by the local lender must not
exceed three percent per year.

Sec. 8.

Minnesota Statutes 2020, section 17.117, subdivision 11a, is amended to read:


Subd. 11a.

Eligible projects.

(a) All projects that remediate or mitigate adverse
environmental impacts are eligible if the project is eligible under an allocation agreement.

(b) A manure management project is eligible if the project remediates or mitigates
impacts from facilities with less than 1,000 animal units as defined in Minnesota Rules,
chapter 7020, and otherwise meets the requirements of this section.

(c) A drinking water project is eligible if the project:

(1) remediates deleted text beginthedeleted text endnew text begin or mitigates the inadequate flow,new text end adverse environmental impacts or
presence of contaminants in deleted text beginprivate welldeleted text endnew text begin privately ownednew text end waternew text begin supplies that are used for
drinking water by people or livestock, privately owned water service lines, or privately
owned plumbing and fixtures
new text end;

(2) implements best management practicesnew text begin that are intendednew text end to achieve drinking water
standardsnew text begin or adequate flownew text end; and

(3) otherwise meets the requirements of this section.

Sec. 9.

Minnesota Statutes 2020, section 18E.04, subdivision 4, is amended to read:


Subd. 4.

Reimbursement payments.

(a) The board shall pay a person that is eligible
for reimbursement or payment under subdivisions 1, 2, and 3 from the agricultural chemical
response and reimbursement account for 80 percent of the total reasonable and necessary
corrective action costs greater than $1,000 and less than or equal to deleted text begin$350,000deleted text endnew text begin $425,000 in
fiscal years 2023 and 2024, $500,000 in fiscal years 2025 and 2026, and $575,000 in fiscal
year 2027 and each following year
new text end.

(b) A reimbursement or payment may not be made until the board has determined that
the costs are reasonable and are for a reimbursement of the costs that were actually incurred.

(c) The board may make periodic payments or reimbursements as corrective action costs
are incurred upon receipt of invoices for the corrective action costs.

(d) Money in the agricultural chemical response and reimbursement account is
appropriated to the commissioner to make payments and reimbursements directed by the
board under this subdivision.

(e) The board may not make reimbursement greater than the maximum allowed under
paragraph (a) for all incidents on a single site which:

(1) were not reported at the time of release but were discovered and reported after July
1, 1989; and

(2) may have occurred prior to July 1, 1989, as determined by the commissioner.

(f) The board may only reimburse an eligible person for separate incidents within a
single site if the commissioner determines that each incident is completely separate and
distinct in respect of location within the single site or time of occurrence.

(g) Except for an emergency incident, the board may not reimburse or pay for more than
60 percent of the corrective action costs of an eligible person or for an incident within five
years of a previous incident at a single site resulting from a site recontamination.

(h) The deduction of $1,000 and 20 percent from the deleted text begin$350,000 remunerationdeleted text end new text beginpayment
amounts described in subdivision (a)
new text end may be waived by the board if the incident took place
on or after August 18, 2007, and was caused by flooding associated with Presidential
Declaration of Major Disaster DR-1717.

Sec. 10.

Minnesota Statutes 2021 Supplement, section 35.155, subdivision 14, is amended
to read:


Subd. 14.

Concurrent authority; regulating farmed white-tailed deer.

deleted text begin(a)deleted text end The
commissioner of natural resources deleted text beginanddeleted text endnew text begin, in conjunction withnew text end the Board of Animal Healthnew text begin,new text end
possess concurrent authority to regulate farmed white-tailed deer under this section, sections
35.92 to 35.96, and any administrative rules adopted pursuant to this section or sections
35.92 to 35.96. This does not confer to the commissioner any additional authorities under
chapter 35, other than those set forth in sections 35.155 and 35.92 to 35.96, and any
administrative rules adopted thereto.new text begin Neither entity may issue an emergency order restricting
the movement of farmed white-tailed deer without the concurrence of the other.
new text end

deleted text begin (b) By February 1, 2022, the commissioner of natural resources, in conjunction with the
Board of Animal Health, must submit a report to the chairs and ranking minority members
of the legislative committees and divisions with jurisdiction over the environment and
natural resources and agriculture on the implementation of the concurrent authority under
this section. The report must include:
deleted text end

deleted text begin (1) a summary of how the agencies worked together under this section, including
identification of any challenges;
deleted text end

deleted text begin (2) an assessment of ongoing challenges to managing chronic wasting disease in this
state; and
deleted text end

deleted text begin (3) recommendations for statutory and programmatic changes to help the state better
manage the disease.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2020, section 40A.18, subdivision 2, is amended to read:


Subd. 2.

Allowed commercial and industrial operations.

(a) Commercial and industrial
operations are not allowed on land within an agricultural preserve except:

(1) small on-farm commercial or industrial operations normally associated with and
important to farming in the agricultural preserve area;

(2) storage use of existing farm buildings that does not disrupt the integrity of the
agricultural preserve;

(3) small commercial use of existing farm buildings for trades not disruptive to the
integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop,
and similar activities that a farm operator might conduct; deleted text beginand
deleted text end

(4) wireless communication installments and related equipment and structure capable
of providing technology potentially beneficial to farming activities. A property owner who
installs wireless communication equipment does not violate a covenant made prior to January
1, 2018, under section 40A.10, subdivision 1deleted text begin.deleted text endnew text begin; and
new text end

new text begin (5) solar energy generating systems with an output capacity of one megawatt or less.
new text end

(b) For purposes of paragraph (a), clauses (2) and (3), "existing" means existing on
August 1, 1989.

Sec. 12.

Minnesota Statutes 2021 Supplement, section 41A.21, subdivision 2, is amended
to read:


Subd. 2.

Eligibility.

(a) A facility eligible for payment under this section must source
at least 80 percent of its forest resources raw materials from Minnesota. The facility must
be located in Minnesota; must begin construction activities by December 31, 2022, for a
specific location; must deleted text beginbegin productiondeleted text endnew text begin have produced at least one OSB square foot on a
3/8-inch nominal basis
new text end at a specific location by June 30, 2025; and must not begin operating
before January 1, 2022. Eligible facilities must be new OSB construction sites with total
capital investment in excess of $250,000,000. Eligible OSB production facilities must
produce at least deleted text begin200,000,000deleted text endnew text begin 50,000,000new text end OSB square feet on a 3/8-inch nominal basis of
OSB each deleted text beginyeardeleted text endnew text begin quarternew text end. At least one product produced at the facility should be a wood-based
wall or roof structural sheathing panel that has an integrated, cellulose-based paper overlay
that serves as a water resistive barrier.

(b) No payments shall be made for OSB production that occurs after June 30, 2036, for
those eligible producers under paragraph (a).

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

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

Sec. 13.

Minnesota Statutes 2020, section 41B.025, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

new text begin Timely decisions. new text end

new text begin The authority must make a decision on a completed loan
application submitted by a borrower or eligible agricultural lender within ten business days.
new text end

Sec. 14.

Minnesota Statutes 2020, section 223.17, subdivision 4, is amended to read:


Subd. 4.

Bond.

(a) Except as provided in paragraphs (c) to (e), before 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) 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 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) A grain buyer who purchases grain immediately upon delivery solely with cash; a
certified check; a cashier's check; or a postal, bank, or express money order is exempt from
this subdivision deleted text beginif the grain buyer's gross annual purchases are $100,000 or lessdeleted text end.

(f) 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.

Sec. 15.

Minnesota Statutes 2020, section 223.17, subdivision 6, is amended to read:


Subd. 6.

Financial statements.

(a) Except as allowed in paragraph (c), a grain buyer
licensed under this chapter must annually submit to the commissioner a financial statement
prepared in accordance with generally accepted accounting principles. The annual financial
statement required under this subdivision must also:

(1) 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 buyer;

(2) be accompanied by a compilation report of the financial statement that is prepared
by a grain commission firm or a management firm approved by the commissioner or by an
independent public accountant, in accordance with standards established by the American
Institute of Certified Public Accountants;

(3) be accompanied by a certification by the chief executive officer or the chief executive
officer's designee of the licensee, and where applicable, all members of the governing board
of directors under penalty of perjury, that the financial statement accurately reflects the
financial condition of the licensee for the period specified in the statement;

(4) for grain buyers purchasing under deleted text begin$5,000,000deleted text endnew text begin $7,500,000new text end of grain annually, 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

(5) for grain buyers purchasing deleted text begin$5,000,000deleted text endnew text begin $7,500,000new text end or more of grain annually, 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.

(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. All
financial statements filed with the commissioner are private or nonpublic data as provided
in section 13.02.

(c) A grain buyer who purchases grain immediately upon delivery solely with cash; a
certified check; a cashier's check; or a postal, bank, or express money order is exempt from
this subdivision deleted text beginif the grain buyer's gross annual purchases are $100,000 or lessdeleted text end.

(d) The commissioner shall annually provide information on a person's fiduciary duties
to each licensee. To the extent practicable, the commissioner must direct each licensee to
provide this information to all persons required to certify the licensee's financial statement
under paragraph (a), clause (3).

Sec. 16.

Minnesota Statutes 2020, section 346.155, subdivision 7, is amended to read:


Subd. 7.

Exemptions.

This section does not apply to:

(1) institutions accredited by the American Zoo and Aquarium Association;

(2) a wildlife sanctuary;

(3) fur-bearing animals, as defined in section 97A.015, possessed by a game farm that
is licensed under section 97A.105, or bears possessed by a game farm that is licensed under
section 97A.105;

(4) the Department of Natural Resources, or a person authorized by permit issued by
the commissioner of natural resources pursuant to section 97A.401, subdivision 3;

(5) a licensed or accredited research or medical institution; deleted text beginor
deleted text end

(6) a United States Department of Agriculture licensed exhibitor of regulated animals
while transporting or as part of a circus, carnival, rodeo, or fairnew text begin; or
new text end

new text begin (7) a United States Department of Agriculture licensed exhibitor of regulated animals
that houses animals owned by institutions accredited by the American Zoo and Aquarium
Association
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 4

BROADBAND POLICY

Section 1.

new text begin [116J.3951] BROADBAND LINE EXTENSION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin A broadband line extension grant program is
established in the Department of Employment and Economic Development. The purpose
of the broadband line extension grant program is to award grants to eligible applicants in
order to extend existing broadband infrastructure to unserved locations.
new text end

new text begin Subd. 2. new text end

new text begin Portal. new text end

new text begin No later than November 1, 2022, the department must develop and
implement a portal on the department's website that allows a person to report (1) that
broadband service is unavailable at the physical address of the person's residence or business,
and (2) any additional information that the department deems necessary to ensure that the
broadband line extension grant program functions effectively. The department must develop
a form that allows the information identified in this subdivision to be submitted on paper.
new text end

new text begin Subd. 3. new text end

new text begin Data sharing. new text end

new text begin (a) Beginning no later than six months after the date that the
portal is implemented and every six months thereafter, the department must send to each
broadband service provider serving Minnesota customers: (1) a list of addresses submitted
to the portal under subdivision 2 during the previous six months; and (2) any additional
information that the department deems necessary to ensure that the broadband line extension
grant program functions effectively. The department must send the information required
under this section via e-mail.
new text end

new text begin (b) No later than ten days after the date that the list in paragraph (a) is provided, a
broadband service provider may notify the department of any posted address at which the
broadband service provider's broadband service is available. The department must provide
persons residing or doing business at those addresses with contact information for:
new text end

new text begin (1) the broadband service provider with broadband service available at that address; and
new text end

new text begin (2) programs administered by government agencies, nonprofit organizations, or the
applicable broadband service provider that reduce the cost of broadband service and for
which the persons may be eligible.
new text end

new text begin Subd. 4. new text end

new text begin Reverse auction process. new text end

new text begin (a) No later than ten days after the date that the notice
requirement in subdivision 3, paragraph (b), expires, the department must notify each
broadband service provider that the broadband service provider may participate in the reverse
auction process under this subdivision. Within 60 days of the date that the notification is
received, a broadband service provider may submit a bid to the department to extend the
broadband service provider's existing broadband infrastructure to a location where broadband
service is currently unavailable.
new text end

new text begin (b) A bid submitted under this subdivision must include:
new text end

new text begin (1) a proposal to extend broadband infrastructure to one or more of the addresses on the
list sent by the department to the broadband service provider under subdivision 3, paragraph
(a), at which broadband service is unavailable;
new text end

new text begin (2) the amount of the broadband infrastructure extension's total cost that the broadband
service provider proposes to pay;
new text end

new text begin (3) the amount of the broadband infrastructure extension's total cost that the broadband
service provider proposes that the department is responsible for paying; and
new text end

new text begin (4) any additional information required by the department.
new text end

new text begin (c) Financial assistance that the department provides under this section must be in the
form of a grant issued to the broadband service provider. A grant issued under this section
must not exceed $25,000 per line extension.
new text end

new text begin (d) Within 60 days of the date that the bidding period closes, the department must review
the bids submitted and select the broadband service provider bids that request the least
amount of financial support from the state, provided that the department determines that
the selected bids represent a cost-effective expenditure of state resources.
new text end

new text begin Subd. 5. new text end

new text begin Line extension agreement. new text end

new text begin The department must enter into a line extension
agreement with each winning bidder identified under subdivision 4, except that the
department may not enter into a line extension agreement to serve any customer located
within an area that will be served by a grant already awarded by the department under section
116J.395.
new text end

new text begin Subd. 6. new text end

new text begin Contents of agreement. new text end

new text begin A line extension agreement under subdivision 5 must
contain the following terms:
new text end

new text begin (1) the broadband service provider agrees to extend broadband infrastructure to support
broadband service scalable to speeds of at least 100 megabits per second download and 100
megabits per second upload to each address included in the broadband service provider's
winning bid;
new text end

new text begin (2) the department agrees to pay the state's portion of the line extension cost in a grant
issued to the broadband service provider upon the completion of the broadband infrastructure
extension to each address in the broadband service provider's winning bid; and
new text end

new text begin (3) the winning bidder has an exclusive right to apply the grant to the cost of the
broadband infrastructure extension for a period of one year after the date that the agreement
is executed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2020, section 116J.396, subdivision 2, is amended to read:


Subd. 2.

Expenditures.

Money in the account may be used only:

(1) for grant awards made under deleted text beginsectiondeleted text endnew text begin sectionsnew text end 116J.395new text begin and 116J.3951new text end, including
costs incurred by the Department of Employment and Economic Development to administer
that section;

(2) to supplement revenues raised by bonds sold by local units of government for
broadband infrastructure development; or

(3) to contract for the collection of broadband deployment data from providers and the
creation of maps showing the availability of broadband service.

Sec. 3.

new text begin [116J.399] BROADBAND EASEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms have
the meanings given:
new text end

new text begin (1) "broadband infrastructure" has the meaning given in section 116J.394, paragraph
(c);
new text end

new text begin (2) "broadband service" has the meaning given in section 116J.394, paragraph (b); and
new text end

new text begin (3) "provider" means a broadband service provider, but does not include an electric
cooperative association organized under chapter 308A that provides broadband service.
new text end

new text begin Subd. 2. new text end

new text begin Use of existing easements for broadband services. new text end

new text begin (a) A provider, provider's
affiliate, or another entity that has entered into an agreement with a provider, may use the
provider, affiliate, or entity's existing or subsequently acquired easements to install broadband
infrastructure and provide broadband service, which may include an agreement to lease
fiber capacity.
new text end

new text begin (b) Before exercising rights granted under this subdivision, a provider must provide
notice to the property owner on which the easement is located, as described in subdivision
3.
new text end

new text begin (c) Use of an easement to install broadband infrastructure and provide broadband service
vests and runs with the land beginning six months after the first notice is provided under
subdivision 3, unless a court action challenging the use of the easement has been filed before
that time by the property owner as provided under subdivision 4. The provider must also
file copies of the notices with the county recorder.
new text end

new text begin Subd. 3. new text end

new text begin Notice to property owner. new text end

new text begin (a) A provider must send two written notices to
impacted property owners declaring that the provider intends to use the easements to install
broadband infrastructure and provide broadband service. The notices must be sent at least
two months apart and must be sent by first class mail to the last known address of the owner
of the property on which the easement is located or, if the property owner is an existing
customer of the provider, by separate printed insertion in the property owner's monthly
invoice or included as a separate page on a property owner's electronic invoice.
new text end

new text begin (b) The notice must include:
new text end

new text begin (1) the provider's name and mailing address;
new text end

new text begin (2) a narrative describing the nature and purpose of the intended easement use;
new text end

new text begin (3) a description of any trenching or other underground work expected to result from
the intended use, and the anticipated time frame for the work;
new text end

new text begin (4) a phone number for an employee of the provider that the property owner may contact
regarding the easement; and
new text end

new text begin (5) the following statement, in bold red lettering: "It is important to make any challenge
by the deadline to preserve any legal rights you may have."
new text end

new text begin (c) The provider must file copies of the notices with the county recorder.
new text end

new text begin Subd. 4. new text end

new text begin Action for damages. new text end

new text begin (a) Notwithstanding any other law to the contrary, this
subdivision governs an action under this section and is the exclusive means to bring a claim
for compensation with respect to a notice of intent to use a provider's existing easement to
install broadband infrastructure and provide broadband service.
new text end

new text begin (b) Within six months after the date notice is received under subdivision 3, a property
owner may file an action seeking to recover damages for a provider's use of an existing
easement to install broadband infrastructure and provide broadband service. Claims for
damages under $15,000 may be brought in conciliation court.
new text end

new text begin (c) To initiate an action under this subdivision, a property owner must serve a complaint
upon the provider in the same manner as in a civil action and must file the complaint with
the district court for the county in which the easement is located. The complaint must state
whether the property owner:
new text end

new text begin (1) challenges the provider's right to use the easement for broadband services or
infrastructure as provided under subdivision 5, paragraph (a);
new text end

new text begin (2) seeks damages as provided under subdivision 5, paragraph (b); or
new text end

new text begin (3) seeks to proceed under both clauses (1) and (2).
new text end

new text begin Subd. 5. new text end

new text begin Deposit and hearing required. new text end

new text begin (a) If a property owner files a complaint
challenging a provider's right to use an easement to install broadband infrastructure and
provide broadband service, after the provider answers the complaint, the district court must
promptly hold a hearing on the complaint. If the district court denies the property owner's
complaint, the provider may proceed to use the easement to install broadband infrastructure
and provide broadband service, unless the complaint also seeks damages. If the complaint
seeks damages, the provider may proceed under paragraph (b).
new text end

new text begin (b) If a property owner files a claim for damages, a provider may, after answering the
complaint, deposit with the court administrator an amount equal to the provider's estimate
of damages. A provider's estimate of damages must be no less than $1. After the estimated
damages are deposited, the provider may use the existing easement to install broadband
infrastructure and provide broadband service, conditioned on an obligation, filed with the
court administrator, to pay the amount of damages determined by the court.
new text end

new text begin Subd. 6. new text end

new text begin Calculation of damages; burden of proof. new text end

new text begin (a) In an action under this section
involving a property owner's claim for damages:
new text end

new text begin (1) the property owner has the burden to prove the existence and amount of any net
reduction in the fair market value of the property, considering the existence, installation,
construction, maintenance, modification, operation, repair, replacement, or removal of
broadband infrastructure in the easement, adjusted to reflect any increase in the property's
fair market value resulting from access to broadband service;
new text end

new text begin (2) a court is prohibited from awarding consequential or special damages; and
new text end

new text begin (3) evidence of estimated revenue, profits, fees, income, or similar benefits accruing to
the provider, the provider's affiliate, or a third party as a result of use of the easement is
inadmissible.
new text end

new text begin (b) Any fees or costs incurred as a result of an action under this subdivision must be
paid by the party that incurred the fees or costs, except that a provider is responsible for a
property owner's attorney fees if the final judgment or award of damages by the court exceeds
140 percent of the provider's damage deposit made under subdivision 5, if applicable.
new text end

new text begin Subd. 7. new text end

new text begin No limits on existing easement. new text end

new text begin Nothing in this section limits in any way a
provider's existing easement rights.
new text end

new text begin Subd. 8. new text end

new text begin Local governmental right-of-way management preserved. new text end

new text begin The placement
of broadband infrastructure to provide broadband service under subdivisions 2 to 7 is subject
to local government permitting and right-of-way management authority under section
237.163, and must be coordinated with the relevant local government unit in order to
minimize potential future relocations. The provider must notify a local government unit
prior to placing infrastructure for broadband service in an easement that is in or adjacent to
the local government unit's public right-of-way.
new text end

new text begin Subd. 9. new text end

new text begin Railroad rights-of-way crossing. new text end

new text begin The placement of broadband infrastructure
for use to provide broadband service under subdivisions 1 to 7 or section 308A.201,
subdivision 12, in any portion of an existing easement located in a railroad right-of-way is
subject to sections 237.04 and 237.045.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 5

HOUSING APPROPRIATIONS

Section 1. new text beginAPPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are added to the appropriations
in Laws 2021, First Special Session chapter 8, or other law, to specified agencies. The
appropriations are from the general fund, or another named fund, and are available for the
fiscal years indicated for each purpose. The figures "2022" and "2023" used in this article
mean that the appropriations listed under them are available for the fiscal year ending June
30, 2022, or June 30, 2023, respectively.
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 2022
new text end
new text begin 2023
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 50,000,000
new text end

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

new text begin (b) Unless otherwise specified, this
appropriation is for transfer to the housing
development fund for the programs specified
in this section.
new text end

new text begin Subd. 2. new text end

new text begin Workforce Homeownership Program
new text end

new text begin 10,000,000
new text end

new text begin This appropriation is for the workforce
homeownership program under Minnesota
Statutes, section 462A.38. This is a onetime
appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Homeownership Investment Grants
new text end

new text begin 35,000,000
new text end

new text begin This appropriation is for homeownership
investment grants under section 4. This is a
onetime appropriation.
new text end

new text begin Subd. 4. new text end

new text begin Targeted Loan Pool
new text end

new text begin 5,000,000
new text end

new text begin This appropriation is for a grant to Build
Wealth Minnesota to establish the 9,000
Equities Fund, a targeted loan pool, to provide
affordable first mortgages or equivalent
financing opportunities to households
struggling to access mortgages in underserved
communities of color. The goal for this
appropriation for Build Wealth Minnesota and
the 9,000 Equities Fund is to create at least
4,500 new homeownership opportunities and
to close the homeownership disparity gap by
eight percent in the Twin Cities metropolitan
area in five years. By February 15, 2023, and
for the next eight years, Build Wealth
Minnesota shall report to the Minnesota
Housing Finance Agency and the legislature
on activities and expenditures of the 9,000
Equities Fund and its homeownership
outcomes. Up to ten percent of the
appropriation may be used by Build Wealth
Minnesota to administer the target loan pool.
This is a onetime appropriation.
new text end

Sec. 3. new text beginHOUSING AFFORDABILITY FUND; FISCAL YEAR 2023 ALLOCATION.
new text end

new text begin (a) $10,000,000 of the allocations from the Housing Finance Agency's housing
affordability fund, or Pool 3, in fiscal year 2023 shall be for a revolving loan fund under
Minnesota Statutes, section 462A.05, subdivision 35, to provide loans with a two percent
interest rate for residents of manufactured home parks to purchase the manufactured home
park in which they reside for the purpose of conversion of the manufactured home park to
cooperative ownership. Repayments of principal and interest from loans issued under this
section must be used for the purposes of this section. The commissioner must make a
determination regarding the issuance of a loan under this section and disburse the funds
within 90 days of receiving a completed application. No money from the allocation under
this paragraph may be used to administer this program. The commissioner must not supplant
other homeownership programs out of Pool 3 to capitalize this revolving loan fund.
new text end

new text begin (b) $5,000,000 of the allocations from the Housing Finance Agency's housing affordability
fund, or Pool 3, in fiscal year 2023 shall be for grants to nonprofit organizations for the
installation of sprinkler systems in eligible residential buildings. "Eligible residential
buildings" means an existing building owned by a nonprofit organization that has at least
one story used for human occupancy which is 75 feet or more above the lowest level of fire
department vehicle access, and at least two-thirds of its units are rented to an individual or
family with an annual income of up to 50 percent of the area median income as determined
by the United States Department of Housing and Urban Development, adjusted for family
size, that is paying no more than 30 percent of annual income on rent. The agency shall
develop forms and procedures for soliciting and reviewing applications for grants under
this paragraph. The maximum grant per eligible building shall be $250,000, and each grant
must have a nonstate match of at least 25 percent of the grant award. An in-kind contribution
may be used to meet all or a portion of the match requirement. This allocation expires on
June 30, 2025.
new text end

new text begin (c) Each year on January 15, the commissioner of the Housing Finance Agency shall
report to the legislature the allocation of housing affordability funds under paragraphs (a)
and (b) separately, including the amount issued in loans, the amount of loans repaid, the
remaining balance of the revolving loan fund, the number of projects funded or financed,
the number of residents included in each project, and the location of each project.
new text end

new text begin (d) Nothing in this section shall impair the obligation of the agency to use funds in Pool
3 to satisfy the agency's obligations to holders of bonds secured by the general obligation
pledge of the agency to suggested use of agency resources.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4. new text beginHOMEOWNERSHIP INVESTMENT GRANTS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms have
the meanings given:
new text end

new text begin (1) "commissioner" means the commissioner of the Housing Finance Agency; and
new text end

new text begin (2) "eligible organization" means a nonprofit organization the commissioner determines
to be eligible under subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Eligible organization. new text end

new text begin To be eligible for a grant under this subdivision, a
nonprofit organization must:
new text end

new text begin (1) be an organization defined under section 501(c)(3) of the Internal Revenue Code or
an equivalent organization;
new text end

new text begin (2) have primary operations located in the state of Minnesota; and
new text end

new text begin (3) be certified as a community development financial institution by the United States
Department of the Treasury and must provide affordable housing lending or financing
programs.
new text end

new text begin Subd. 3. new text end

new text begin Eligible services. new text end

new text begin (a) Eligible organizations may apply for housing investment
grants for affordable owner-occupied housing projects for the following:
new text end

new text begin (1) housing development to increase the supply of affordable owner-occupied homes;
new text end

new text begin (2) financing programs, including revolving loans, for affordable owner-occupied new
home construction;
new text end

new text begin (3) acquisition, rehabilitation, and resale of affordable owner-occupied homes or homes
to be converted to owner-occupied homes;
new text end

new text begin (4) financing programs, including revolving loans, for affordable owner-occupied
manufactured housing;
new text end

new text begin (5) services to increase access to stable, affordable, owner-occupied housing in
low-income communities, Indigenous American Indian communities, and communities of
color; and
new text end

new text begin (6) residential counseling or housing navigation assistance for homeownership.
new text end

new text begin (b) No more than five percent of the total amount awarded in this section may be for
grants under paragraph (a), clause (3), and no more than five percent of the total amount
awarded under this section may be for grants under paragraph (a), clause (6).
new text end

new text begin Subd. 4. new text end

new text begin Commissioner duties. new text end

new text begin (a) The commissioner shall consult with eligible
organizations and develop forms, applications, and reporting requirements for use by eligible
organizations. All organizations applying for a grant must include as part of their application
a plan to create new affordable home ownership and home preservation opportunities for
targeted areas. The commissioner shall develop a grant award scoring system that ensures
a distribution of awards throughout the state based on population and eligible households
and communities.
new text end

new text begin (b) The commissioner shall complete the requirements under paragraph (a) within 90
days of enactment of this section.
new text end

new text begin (c) By January 15, 2023, the commissioner must submit a report to the chairs and ranking
minority members of the legislative committees with jurisdiction over housing finance and
policy detailing the use of funds under this section.
new text end

ARTICLE 6

HOUSING POLICY

Section 1.

new text begin [12.47] LIMITATION OF POWERS; EVICTION PROCEEDINGS.
new text end

new text begin Notwithstanding any law to the contrary, an order issued under this chapter prohibiting
or delaying eviction proceedings under chapter 504B or 327C is valid for a period not to
exceed 30 days. The governor must not extend the order beyond 30 days unless the extension
is approved by a majority vote of each house of the legislature. The governor shall not allow
the order to expire and issue a new order delaying or prohibiting eviction proceedings under
chapter 504B or 327C in an effort to avoid obtaining legislative approval for an extension
of the order as provided in this section. An order issued to avoid obtaining legislative
approval as required under this section is null and void.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [462.3575] LIMITING REGULATIONS ON RESIDENTIAL
DEVELOPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin This section applies to official controls adopted under
sections 462.357, 462.358, and 462.3595.
new text end

new text begin Subd. 2. new text end

new text begin Planned unit development. new text end

new text begin (a) A municipality shall not require a planned unit
development agreement in lieu of a proposed residential development if the proposed
residential development complies with the existing city zoning ordinances, subdivision
regulation, or qualifies as a conditional use.
new text end

new text begin (b) A planned unit development agreement must be made available to the public by
posting the agreement on the website of the municipality at least seven days before the
governing body's review of the agreement. If the municipality does not have a website, a
copy of the planned unit development agreement must be available for review at the city
hall building of the municipality. If the agreement is approved by the governing body, the
agreement cannot be modified unless all parties to the agreement concur.
new text end

new text begin Subd. 3. new text end

new text begin Limitation on aesthetic mandates. new text end

new text begin A municipality shall not condition approval
of a building permit, subdivision development, or planned unit development on the use of
specific materials, design, or other aesthetic conditions that are not required by the State
Building Code under chapter 326B. This subdivision shall not apply within a historic district
as determined under section 138.72 that was in existence as of January 1, 2022.
new text end

new text begin Subd. 4. new text end

new text begin Exception. new text end

new text begin This section shall not apply to a proposed residential development
that is to be developed by the municipality itself or to multifamily rental, commercial, or
industrial properties.
new text end

Sec. 3.

Minnesota Statutes 2020, section 462A.03, subdivision 13, is amended to read:


Subd. 13.

Eligible mortgagor.

"Eligible mortgagor" means a nonprofit or cooperative
housing corporation; the Department of Administration for the purpose of developing
community-based programs as defined in section 252.50; a limited profit entity or a builder
as defined by the agency in its rules, which sponsors or constructs residential housing as
defined in subdivision 7; or a natural person of low or moderate income, except that the
return to a limited dividend entity shall not exceed 15 percent of the capital contribution of
the investors or such lesser percentage as the agency shall establish in its rules, provided
that residual receipts funds of a limited dividend entity may be used for agency-approved,
housing-related investments owned by the limited dividend entity without regard to the
limitation on returns. Owners of existing residential housing occupied by renters shall be
eligible for rehabilitation loans, only if, as a condition to the issuance of the loan, the owner
agrees to conditions established by the agency in its rules relating to rental or other matters
that will deleted text begininsuredeleted text endnew text begin ensurenew text end that the housing will be occupied by persons and families of low or
moderate income. The agency shall require by rules that the owner give preference to those
persons of low or moderate income who occupied the residential housing at the time of
application for the loan.

Sec. 4.

Minnesota Statutes 2021 Supplement, section 462A.05, subdivision 14a, is amended
to read:


Subd. 14a.

Rehabilitation loans; existing owner-occupied residential housing.

It may
make loans to persons and families of low and moderate income to rehabilitate or to assist
in rehabilitating existing residential housing owned and occupied by those persons or
families. Rehabilitation may include replacement of manufactured homes. No loan shall be
made unless the agency determines that the loan will be used primarily for rehabilitation
work necessary for health or safety, essential accessibility improvements, or to improve the
energy efficiency of the dwelling. No loan for rehabilitation of owner-occupied residential
housing shall be denied solely because the loan will not be used for placing the residential
housing in full compliance with all state, county or municipal building, housing maintenance,
fire, health or similar codes and standards applicable to housing. The amount of any loan
shall not exceed the lesser of (a) a maximum loan amount determined under rules adopted
by the agency not to exceed deleted text begin$37,500deleted text endnew text begin $40,000new text end, or (b) the actual cost of the work performed,
or (c) that portion of the cost of rehabilitation which the agency determines cannot otherwise
be paid by the person or family without the expenditure of an unreasonable portion of the
income of the person or family. Loans made in whole or in part with federal funds may
exceed the maximum loan amount to the extent necessary to comply with federal lead
abatement requirements prescribed by the funding source. In making loans, the agency shall
determine the circumstances under which and the terms and conditions under which all or
any portion of the loan will be repaid and shall determine the appropriate security for the
repayment of the loan. Loans pursuant to this subdivision may be made with or without
interest or periodic payments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2020, section 462A.05, is amended by adding a subdivision to
read:


new text begin Subd. 14f. new text end

new text begin Reporting; rehabilitation loans. new text end

new text begin By January 15 of each year, the agency
must report to the legislative committees with jurisdiction over housing the following with
respect to the rehabilitation loan programs referenced in subdivisions 14 and 14a:
new text end

new text begin (1) a list of programs, the sources of funding for those programs, and the amounts
allocated from each source;
new text end

new text begin (2) the total number of loans and total amount of outstanding rehabilitation loans per
program;
new text end

new text begin (3) the total number of loans issued, total dollar amount in loans, the mean and median
loan amount, and the number of loans at the maximum loan amount for the prior fiscal year
per program;
new text end

new text begin (4) the total number of loans forgiven, the total dollar amount forgiven, and the mean
and median loan amount forgiven in the prior fiscal year per program;
new text end

new text begin (5) the total amount of loans issued by county over the prior fiscal year per program;
and
new text end

new text begin (6) a history of the maximum loan amount over time and computation of what the
maximum loan amount would be if adjusted for inflation.
new text end

Sec. 6.

Minnesota Statutes 2020, section 462A.05, is amended by adding a subdivision to
read:


new text begin Subd. 42. new text end

new text begin Indian Tribes. new text end

new text begin Notwithstanding any other provision in this chapter, at its
discretion the agency may make any federally recognized Indian Tribe in Minnesota, or
their associated Tribally Designated Housing Entity (TDHE) as defined by United States
Code, title 25, section 4103(22), eligible for funding authorized under this chapter.
new text end

Sec. 7.

Minnesota Statutes 2020, section 462A.05, is amended by adding a subdivision to
read:


new text begin Subd. 43. new text end

new text begin Housing disparities. new text end

new text begin The agency must prioritize its use of appropriations for
any homeownership program under this chapter to narrow the racial disparity gap in
homeownership.
new text end

Sec. 8.

Minnesota Statutes 2020, section 462A.07, subdivision 9, is amended to read:


Subd. 9.

Priority where State Building Code is adopted.

It may establish such rules
as may be necessary to deleted text begininsuredeleted text endnew text begin ensurenew text end that priority for assistance by the agency will be given
to projects located in municipal jurisdictions or counties, which have adopted the uniform
State Building Code.

Sec. 9.

Minnesota Statutes 2020, section 462A.07, subdivision 10, is amended to read:


Subd. 10.

Human rights.

It may establish and enforce such rules as may be necessary
to deleted text begininsuredeleted text endnew text begin ensurenew text end compliance with chapter 363A, and to deleted text begininsuredeleted text endnew text begin ensurenew text end that occupancy of
housing assisted under this chapter shall be open to all persons, and that contractors and
subcontractors engaged in the construction of such housing shall provide an equal opportunity
for employment to all persons, without discrimination as to race, color, creed, religion,
national origin, sex, marital status, age, and status with regard to public assistance or
disability.

Sec. 10.

Minnesota Statutes 2020, section 462A.07, subdivision 14, is amended to read:


Subd. 14.

American Indians.

(a) It may engage in housing programs for low- and
moderate-income American Indians developed and administered separately or in combination
by the Minnesota Chippewa tribe, the Red Lake band of Chippewa Indians, and the Sioux
communities as determined by such tribe, band, or communities. In furtherance of the policy
of economic integration stated in section 462A.02, subdivision 6, it may engage in housing
programs for American Indians who intend to reside on reservations and who are not persons
of low and moderate income, provided that the aggregate dollar amount of the loans for
persons who are not of low- or moderate-income closed in each lender's fiscal year shall
not exceed an amount equal to 25 percent of the total dollar amount of all loans closed by
that lender during the same fiscal year. In developing such housing programs, the tribe,
band, or communities shall take into account the housing needs of all American Indians
residing both on and off reservations within the state. A plan for each such program, which
specifically describes the program content, utilization of funds, administration, operation,
implementation and other matter, as determined by the agency, must be submitted to the
agency for its review and approval prior to the making of eligible loans pursuant to section
462A.21. All such programs must conform to rules promulgated by the agency concerning
program administration, including but not limited to rules concerning costs of administration;
the quality of housing; interest rates, fees, and charges in connection with making eligible
loans; and other matters determined by the agency to be necessary in order to effectuate the
purposes of this subdivision and section 462A.21, subdivisions 4b and 4c. All such programs
must provide for a reasonable balance in the distribution of funds appropriated for the
purpose of this section between American Indians residing on and off reservations within
the state. Nothing in this section shall preclude such tribe, band, or communities from
requesting and receiving cooperation, advice, and assistance from the agency as regards
program development, operation, delivery, financing, or administration. As a condition to
the making of such eligible loans, the Minnesota Chippewa tribe, the Red Lake band of
Chippewa Indians, and the Sioux communities shall:

(1) enter into a loan agreement and other contractual arrangements with the agency for
the purpose of transferring the allocated portion of loan funds and to deleted text begininsuredeleted text endnew text begin ensurenew text end compliance
with the provisions of this section and this chapter; and

(2) agree that all of their official books and records related to such housing programs
shall be subjected to audit by the legislative auditor in the manner prescribed for agencies
of state government.

The agency shall submit a biennial report concerning the various housing programs for
American Indians, and related receipts and expenditures as provided in section 462A.22,
subdivision 9
, and such tribe, band, or communities to the extent that they administer such
programs, shall be responsible for any costs and expenses related to such administration
provided, however, they shall be eligible for payment for costs, expenses, and services
pursuant to subdivision 12 and section 462A.21. The agency may provide or cause to be
provided essential general technical services as set forth in subdivision 2, and general
consultative project assistance services, including, but not limited to, management training,
and home ownership counseling as set forth in subdivision 3. Members of boards,
committees, or other governing bodies of the tribe, band, and communities administering
the programs authorized by this subdivision must be compensated for those services as
provided in section 15.0575.

(b) The agency may engage in demonstration projects to encourage the participation of
financial institutions or other leveraging sources in providing housing opportunities for
American Indians. The agency shall consult with the Minnesota Chippewa tribe, the Red
Lake band of Chippewa Indians, and the Sioux communities in developing the demonstration
projects. The income limits specified in paragraph (a) do not apply to the demonstration
projects.

(c) The agency may make home improvement loans under this subdivision without
regard to household income.

Sec. 11.

Minnesota Statutes 2020, section 462A.2035, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By January 15 of each year, the agency must report to the legislative
committees with jurisdiction over housing the following with respect to grants issued under
subdivision 1b:
new text end

new text begin (1) grants requested and grants funded during the prior fiscal year, organized by
ownership type of the manufactured home park, such as private, cooperative, and municipal
ownership, and by county; and
new text end

new text begin (2) the average amounts of grants awarded.
new text end

Sec. 12.

Minnesota Statutes 2020, section 462A.204, subdivision 3, is amended to read:


Subd. 3.

Set aside.

At least one grant must be awarded in an area located outside of the
metropolitan area. A county, a group of contiguous counties jointly acting together, a Tribe,
a group of Tribes, or a community-based nonprofit organization deleted text beginwith a sponsoring resolution
from each of the county boards of the counties located within its operating jurisdiction
deleted text end may
apply for and receive grants deleted text beginfor areas located outside the metropolitan areadeleted text end.

Sec. 13.

Minnesota Statutes 2020, section 462A.21, subdivision 4a, is amended to read:


Subd. 4a.

Correction of housing defects.

It may make rehabilitation grants and
expenditures for correction of residential housing defects as provided in section 462A.05,
subdivisions 15
and 16. In order to deleted text begininsuredeleted text endnew text begin ensurenew text end the preservation of the maximum number
of housing units with the money appropriated by the legislature, grants shall be recovered
by the agency to the extent provided in this section to be used for future grants. Grants made
under the terms of this subdivision shall contain a requirement that the grant be recovered
by the agency in accordance with the following schedule:

(1) if the property is sold, transferred, or otherwise conveyed within the first three years
after the date of a grant, the recipient shall repay the full amount of the grant;

(2) if the property is sold, transferred, or otherwise conveyed within the fourth year after
the date of a grant, the recipient shall repay 75 percent of the amount of the grant;

(3) if the property is sold, transferred, or otherwise conveyed within the fifth year after
the date of a grant, the recipient shall repay 50 percent of the amount of the grant;

(4) if the property is sold, transferred, or otherwise conveyed within the sixth year after
the date of a grant, the recipient shall repay 25 percent of the amount of the grant;

(5) if the property is sold, transferred, or otherwise conveyed within the seventh year
after the date of the grant, or thereafter, there is no repayment requirement; provided that
no repayment is required to the extent that the grants are made to improve the accessibility
of residential housing to a disabled occupant.

Sec. 14.

Minnesota Statutes 2020, section 462A.24, is amended to read:


462A.24 CONSTRUCTION; GRANTS AND LOANS; PRIORITIES.

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

(b) To the extent practicable, the agency shall award grant and loan amounts with a
reasonable balance between nonmetropolitan and metropolitan areas of the state.

(c) Beginning with applications made in response to requests for proposals issued after
July 1, 2020, 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 begin (d) The agency shall award points in the agency's decision-making criteria for all
programs of the agency based on how quickly a project can be constructed.
new text end

Sec. 15.

Minnesota Statutes 2020, section 462A.33, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Report. new text end

new text begin By January 15 of each year, the agency must report to the legislative
committees with jurisdiction over housing the following with respect to activities of the
program created by this section during the prior fiscal year:
new text end

new text begin (1) the number of units of new construction and number of rehabilitated units funded
by county; and
new text end

new text begin (2) the number of owner-occupied units and number of rental units funded by county.
new text end

Sec. 16.

Minnesota Statutes 2020, section 462A.36, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Refunding bonds. new text end

new text begin (a) The agency may issue nonprofit housing bonds in one
or more series to refund bonds authorized in subdivision 2. The amount of refunding nonprofit
housing bonds that may be issued from time to time will not be subject to the dollar limitation
contained in subdivision 2 nor will those bonds be included in computing the amount of
bonds that may be issued within that dollar limitation.
new text end

new text begin (b) In the refunding of nonprofit housing bonds, each bond must be called for redemption
prior to its maturity in accordance with its terms no later than the earliest date on which it
may be redeemed. No refunding bonds may be issued unless as of the date of the refunding
bonds the present value of the dollar amount of the debt service on the refunding bonds,
computed to their stated maturity dates, is lower than the present value of the dollar amount
of debt service on all nonprofit housing bonds refunded computed to their stated maturity
dates. For purposes of this subdivision, "present value of the dollar amount of debt service"
means the dollar amount of debt service to be paid, discounted to the nominal date of the
refunding bonds at a rate equal to the yield on the refunding bonds.
new text end

new text begin (c) If as a result of the issuance of refunding bonds the amount of debt service for an
annual period is less than the amount transferred by the commissioner of management and
budget to pay debt service for that annual period, the agency must deduct the excess amount
from the actual amount of debt service on those bonds certified for the next subsequent
annual period.
new text end

Sec. 17.

Minnesota Statutes 2020, section 462A.36, subdivision 4, is amended to read:


Subd. 4.

Appropriation; payment to agency or trustee.

(a) The agency must certify
annually to the commissioner of management and budget the actual amount of annual debt
service on each series of bonds issued under subdivision 2.

(b) Each July 15, beginning in 2009 and through 2031, if any nonprofit housing bonds
issued under subdivision 2new text begin, or nonprofit housing bonds issued to refund those bonds,new text end remain
outstanding, the commissioner of management and budget must transfer to the nonprofit
housing bond account established under section 462A.21, subdivision 32, the amount
certified under paragraph (a), not to exceed $2,400,000 annually. The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

(c) The agency may pledge to the payment of the nonprofit housing bonds the payments
to be made by the state under this section.

Sec. 18.

Minnesota Statutes 2020, section 462A.37, is amended by adding a subdivision
to read:


new text begin Subd. 2i. new text end

new text begin Refunding bonds. new text end

new text begin (a) The agency may issue housing infrastructure bonds in
one or more series to refund bonds authorized in this section. The amount of refunding
housing infrastructure bonds that may be issued from time to time will not be subject to the
dollar limitation contained in any of the authorizations in this section nor will those bonds
be included in computing the amount of bonds that may be issued within those dollar
limitations.
new text end

new text begin (b) In the refunding of housing infrastructure bonds, each bond must be called for
redemption prior to its maturity in accordance with its terms no later than the earliest date
on which it may be redeemed. No refunding bonds may be issued unless as of the date of
the refunding bonds the present value of the dollar amount of the debt service on the
refunding bonds, computed to their stated maturity dates, is lower than the present value of
the dollar amount of debt service on all housing infrastructure bonds refunded computed to
their stated maturity dates. For purposes of this subdivision, "present value of the dollar
amount of debt service" means the dollar amount of debt service to be paid, discounted to
the nominal date of the refunding bonds at a rate equal to the yield on the refunding bonds.
new text end

new text begin (c) If as a result of the issuance of refunding bonds the amount of debt service for an
annual period is less than the amount transferred by the commissioner of management and
budget to pay debt service for that annual period, the agency must deduct the excess amount
from the actual amount of debt service on those bonds certified for the next subsequent
annual period.
new text end

Sec. 19.

Minnesota Statutes 2020, section 462A.37, subdivision 4, is amended to read:


Subd. 4.

Appropriation; payment to agency or trustee.

(a) The agency must certify
annually to the commissioner of management and budget the actual amount of annual debt
service on each series of bonds issued under subdivision 2.

(b) Each July 15, beginning in 2013 and through 2035, if any housing infrastructure
bonds issued under subdivision 2new text begin, or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the deleted text beginaffordabledeleted text end housing new text begininfrastructure new text endbond account established under section 462A.21,
subdivision 33
, the amount certified under paragraph (a), not to exceed $2,200,000 annually.
The amounts necessary to make the transfers are appropriated from the general fund to the
commissioner of management and budget.

(c) The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

Sec. 20.

Minnesota Statutes 2021 Supplement, section 462A.37, subdivision 5, is amended
to read:


Subd. 5.

Additional appropriation.

(a) The agency must certify annually to the
commissioner of management and budget the actual amount of annual debt service on each
series of bonds issued under this section.

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
bonds issued under subdivision 2anew text begin, or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
bonds issued under subdivision 2bnew text begin, or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure
bonds issued under subdivision 2cnew text begin, or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2dnew text begin, or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2enew text begin, or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2fnew text begin, or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2gnew text begin, or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
bonds issued under subdivision 2hnew text begin, or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(j) The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

Sec. 21.

Minnesota Statutes 2020, 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 cities, new text begincounties,
new text end Tribal governments, nonprofit 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. 22.

Minnesota Statutes 2020, section 462A.39, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

The commissioner of Minnesota housing finance shall
establish a workforce housing development program to award grants or deferred loans to
eligible project areas to be used for qualified expenditures. Grants or deferred loans
authorized under this section may be made without limitations relating to the maximum
incomes of the rentersnew text begin or homeownersnew text end.

Sec. 23.

Minnesota Statutes 2020, section 462A.39, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have the
meanings given.

(b) "Eligible project area" means a home rule charter or statutory city located outside
of the metropolitan area as defined in section 473.121, subdivision 2, with a population
exceeding 500; a community that has a combined population of 1,500 residents located
within 15 miles of a home rule charter or statutory city located outside the metropolitan
area as defined in section 473.121, subdivision 2; new text beginfederally recognized Tribal Reservations;
new text end or an area served by a joint county-city economic development authority.

(c) "Joint county-city economic development authority" means an economic development
authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between
a city and county and excluding those established by the county only.

(d) "Market rate residential rental properties" means properties that are rented at market
value, including new modular homes, new manufactured homes, and new manufactured
homes on leased land or in a manufactured home park, and may include rental developments
that have a portion of income-restricted units.

(e) "Qualified expenditure" means expenditures fornew text begin owner-occupied housing ornew text end market
rate residential rental properties including acquisition of property; construction of
improvements; and provisions of loans or subsidies, grants, interest rate subsidies, public
infrastructure, and related financing costs.

Sec. 24.

Minnesota Statutes 2020, section 462A.39, subdivision 4, is amended to read:


Subd. 4.

Program requirements.

(a) The commissioner must not award a grant or
deferred loans to an eligible project area under this section until the following determinations
are made:

(1) the average vacancy rate for rental housing located in the eligible project area, and
in any other city located within 15 miles or less of the boundaries of the area, has been five
percent or less for at least the prior two-year period;

(2) one or more businesses located in the eligible project area, or within 25 miles of the
area, that employs a minimum of 20 full-time equivalent employees in aggregate have
provided a written statement to the eligible project area indicating that the lack of available
deleted text begin rentaldeleted text end housing has impeded their ability to recruit and hire employees; and

(3) the eligible project area has certified that the grants or deferred loans will be used
for qualified expenditures for the development of deleted text beginrentaldeleted text end housing to serve employees of
businesses located in the eligible project area or surrounding area.

(b) Preference for grants or deferred loans awarded under this section shall be given to
eligible project areas with less than 30,000 people.

(c) Among comparable proposals, preference must be given to projects with a higher
proportion of units that are not income-restricted.

Sec. 25.

Minnesota Statutes 2020, section 462A.39, subdivision 5, is amended to read:


Subd. 5.

Allocation.

The amount of a grant or deferred loans may not exceed 25 percent
of the rental housing development project cost. The commissioner shall not award a grant
or deferred loans to deleted text begina citydeleted text endnew text begin an eligible project areanew text end without certification by the deleted text begincitydeleted text endnew text begin eligible
project area
new text end that the amount of the grant or deferred loans shall be matched by a local unit
of government, business, deleted text beginordeleted text end nonprofit organizationnew text begin, or federally recognized Tribe,new text end with $1
for every $2 provided in grant or deferred loans funds.

Sec. 26.

Minnesota Statutes 2020, section 462A.39, is amended by adding a subdivision
to read:


new text begin Subd. 5a. new text end

new text begin No change in project scope. new text end

new text begin (a) When a contingency is provided in a grant
award under this section, changes to the project made by the developer to meet the
contingency shall not be considered a change in project scope and the grant must be funded,
provided that:
new text end

new text begin (1) the number of affordable units is not reduced;
new text end

new text begin (2) an increase in the number of affordable units is allowed if required to cover the
increased financial costs of meeting the agency contingency; and
new text end

new text begin (3) additional state funds are not solicited for the project.
new text end

new text begin (b) Additional local matching funds may be solicited for the project under this
subdivision, including but not limited to funds from local units of government.
new text end

Sec. 27.

Minnesota Statutes 2020, section 462A.39, subdivision 6, is amended to read:


Subd. 6.

Report.

deleted text beginBeginningdeleted text endnew text begin Bynew text end January 15deleted text begin, 2018deleted text endnew text begin of each yearnew text end, the commissioner must
annually submit a report to the chairs and ranking minority members of the senate and house
of representatives committees having jurisdiction over taxes deleted text beginanddeleted text endnew text begin,new text end workforce developmentnew text begin,
and housing
new text end specifying the projects that received grants or deferred loans under this section
and the specific purposes for which the grant funds were used.new text begin The report must include a
breakdown of the amount issued in loans and the amount issued in grants for the prior fiscal
year, together with the number of new units funded and the number of rehabilitated units
funded in the prior fiscal year.
new text end

Sec. 28.

new text begin [462A.41] PROGRAM FOR MANUFACTURED HOME MORTGAGE
FINANCING AND DOWN PAYMENT ASSISTANCE FOR CERTAIN
MANUFACTURED HOMES.
new text end

new text begin (a) By August 1, 2023, the agency, in conjunction with Fannie Mae's HomeReady
program or other federal mortgage programs that may authorize it, must develop and
implement a program that offers mortgage financing and down payment assistance for
purchasers of eligible manufactured homes.
new text end

new text begin (b) For purposes of this section "eligible manufactured homes" means a manufactured
home titled as real property in this state and affixed to real property owned by a
resident-owned community.
new text end

new text begin (c) The agency may include manufactured homes in private parks as an eligible
manufactured home if allowed under federal law. The commissioner must report to the
chairs and ranking minority members of the legislative committees with jurisdiction over
housing by August 1, 2023, on steps required to set up a similar program for manufactured
homes in private parks if they do not qualify under federal law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 29.

Minnesota Statutes 2020, section 471.9996, subdivision 1, is amended to read:


Subdivision 1.

deleted text beginIn generaldeleted text endnew text begin Prohibitionnew text end.

new text begin(a) new text endNo statutory or home rule charter city, county,
or town may adopt or renew by ordinance or otherwise any law to control rents on private
residential property deleted text beginexcept as provided in subdivision 2deleted text end. This section does not impair the
right of any statutory or home rule charter city, county, or town:

(1) to manage or control property in which it has a financial interest through a housing
authority or similar agency;

(2) to contract with a property owner;

(3) to act as required or authorized by laws or regulations of the United States government
or this state; or

(4) to mediate between property owners and tenants for the purpose of negotiating rents.

new text begin (b) Nothing in this section shall be deemed to limit or restrict the classification of
low-income rental property as class 4d under section 273.13, subdivision 25.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from November 1, 2021.
new text end

Sec. 30.

Minnesota Statutes 2020, 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 the last Monday in June, 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:

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

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 deleted text beginrandomlydeleted text end awarded by deleted text beginlotdeleted text endnew text begin giving
preference for projects with a lower cost per square foot
new text end but only for projects that can receive
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
for an allocation of bonds again in the same calendar year or to the next successive housing
pool, 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. An issuer that receives an allocation under this
paragraph must issue obligations equal to all or a portion of the allocation received on or
before 180 days of the allocation. 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 the time
period provided in this paragraph 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 1.

(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 June 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 June 15 shall notify
the Minnesota Housing Finance Agency by June 15. The Minnesota Housing Finance
Agency shall notify each city making a request of the amount of its allocation within three
business days after June 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 27 percent of the adjusted allocation to the housing pool until after June 15 in 2020
and 2021, after which the allocations may not exceed 31 percent of the adjusted allocation
to the housing pool until after June 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 June. 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 June. 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
June 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2023.
new text end

Sec. 31.

Minnesota Statutes 2020, 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 July 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) preservation projects; (2) 30 percent AMI residential
rental projects; (3) 50 percent AMI residential rental projects for which the amount of bonds
requested in their respective applications do not exceed the aggregate bond limitations; (4)
100 percent LIHTC projects; (5) 20 percent LIHTC projects; and (6) other residential rental
projects. 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 deleted text beginrandomlydeleted text end awarded
by deleted text beginlotdeleted text endnew text begin giving preference for projects with a lower cost per square footnew text end but only for projects
that can receive 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 next successive housing pool or the next successive unified pool
for an 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.

(g) From the first Monday in July 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 the 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2023.
new text end

Sec. 32.

Laws 2021, First Special Session chapter 8, article 6, section 1, subdivision 7, is
amended to read:


Subd. 7.

Report.

(a) No later than February 1, 2022, the task force shall submit an initial
report to the chairs and ranking minority members of the house of representatives and senate
committees and divisions with jurisdiction over housing and preventing homelessness on
its findings and recommendations.

(b) No later than deleted text beginAugust 31, 2022deleted text endnew text begin December 15, 2022new text end, the task force shall submit a final
report to the chairs and ranking minority members of the house of representatives and senate
committees and divisions with jurisdiction over housing and preventing homelessness on
its findings and recommendations.

Sec. 33. new text beginPROHIBITION OF GRANT FUNDS FOR HIRING A LOBBYIST.
new text end

new text begin No grant funds awarded by the Housing Finance Agency may be used to hire a lobbyist
as defined in Minnesota Statutes, section 10A.01, subdivision 21.
new text end

Sec. 34. new text beginREPORT ON RENT CONTROL; PROHIBITION ON USE OF FUNDS.
new text end

new text begin (a) The Housing Finance Agency must complete a report regarding the impact of rent
control on housing markets. The report must explore the impact of rent control throughout
the United States, and may explore international housing markets. The report must also
include but is not limited to an examination of the following:
new text end

new text begin (1) the current housing market, including an analysis of supply and demand, in Minnesota,
in the Twin Cities metropolitan area, and within the cities of Minneapolis and St. Paul;
new text end

new text begin (2) the impact, both nationally and within Minnesota, on the construction of new housing
units within jurisdictions that have enacted rent control policies, as well as on nearby
jurisdictions without rent control policies;
new text end

new text begin (3) the impact of rent control on the maintenance of residential properties;
new text end

new text begin (4) whether enactment of rent control policies has led to increases in other regulatory
burdens related to housing in jurisdictions that have imposed rent control; and
new text end

new text begin (5) how rent control policies enacted within Minnesota compare to policies in jurisdictions
across the United States, including how various jurisdictions define "rent" for the purposes
of their policies, whether such policies exempt new construction, whether such policies
allow for tenancy decontrol, and how "fair return on investment" policies operate in other
jurisdictions with rent control policies, including an examination of how such policies are
administered and the criteria used to determine what constitutes a fair return on investment.
new text end

new text begin (b) The agency must consult with stakeholders, including renters, landlords, developers,
tradespeople, financers and lending institutions, and local governments during the preparation
of the report. The agency must also consult relevant academic literature and may consult
with academic institutions during the preparation of the report.
new text end

new text begin (c) The report must be submitted to chairs and ranking minority members of the legislative
committees with jurisdiction over housing by August 1, 2023.
new text end

new text begin (d) Until the report required by this section is delivered, the Housing Finance Agency
must not use any funds from any source on multifamily housing projects in cities that have
adopted a rent control ordinance.
new text end

Sec. 35. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2020, section 471.9996, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from November 1, 2021.
new text end

APPENDIX

Repealed Minnesota Statutes: S4019-2

471.9996 RENT CONTROL PROHIBITED.

Subd. 2.

Exception.

Subdivision 1 does not preclude a statutory or home rule charter city, county, or town from controlling rents on private residential property to the extent that the city, county, or town has the power to adopt an ordinance, charter amendment, or law to control these rents if the ordinance, charter amendment, or law that controls rents is approved in a general election. Subdivision 1 does not limit any power or authority of the voters of a statutory or home rule charter city, county, or town to petition for an ordinance or charter amendment to control rents on private residential property to the extent that the power or authority is otherwise provided for by law, and if the ordinance or charter amendment is approved in a general election. This subdivision does not grant any additional power or authority to the citizens of a statutory or home rule charter city, county, or town to vote on any question beyond that contained in other law.

Subdivision 1 does not apply to any statutory city unless the citizens of the statutory city have the authority to vote on the issue of rent control granted by other law.