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Minnesota Session Laws - 1994, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 642-S.F.No. 2168
An act relating to agricultural businesses; providing
for promotion of nontraditional agriculture,
inspection of agricultural operations, ethanol
development, a value-added agricultural product loan
program, sale of stock in cooperatives, and care of
dogs and cats; creating an interest buy-down program;
exempting from the sales tax the gross receipts from
sales of used farm machinery; providing matching money
for federal emergency disaster funds in flood damaged
counties; providing for emergency job creation;
authorizing a grain grading and testing equipment
pilot program; providing supplemental funding for
grain inspection programs, the ethanol development
fund, and small business disaster loan programs;
expanding research on grain diseases and soybeans;
increasing funding for the farm advocates program,
agricultural resource centers, legal assistance to
farmers, legal challenges to the federal milk market
order system, farm and small business management
programs at technical colleges and Minnesota
extension; funding a beaver control program, the dairy
leaders roundtable, the state park road account, an
advisory committee, and a task force; providing
funding to the Agricultural Utilization Research
Institute; requiring a report; appropriating money;
amending Minnesota Statutes 1992, sections 17.03, by
adding a subdivision; 180.03, by adding a subdivision;
and 297A.25, by adding a subdivision; Minnesota
Statutes 1993 Supplement, sections 41B.044,
subdivision 2; and 80A.15, subdivision 2; Laws 1993,
chapter 172, section 7, subdivision 3; proposing
coding for new law in Minnesota Statutes, chapters 17;
41B; and 346.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1992, section 17.03, is
amended by adding a subdivision to read:
Subd. 7a. [NONTRADITIONAL AGRICULTURE; PROMOTION.] (a) The
commissioner shall devise means of advancing the production and
marketing of nontraditional agricultural products of the state.
The commissioner shall also seek the cooperation and involvement
of every department or agency of the state, and such public and
nonpublic organizations as the commissioner deems appropriate,
for the promotion of nontraditional agricultural products.
(b) The production and marketing of nontraditional
agricultural products are considered agricultural pursuits.
(c) Except as otherwise provided in law, the commissioner
may adopt appropriate rules concerning health standards for
nontraditional agriculture.
(d) Except as otherwise provided in law, the slaughter of
all meat producing animals, fowl, or fish that are
nontraditional agriculture intended for sale in commercial
outlets must occur at an inspected slaughterhouse.
(e) Except as otherwise provided in law, it is the
responsibility of an owner to take all reasonable actions to
maintain the nontraditional agriculture on property owned or
leased by the owner, including the construction of fences,
enclosures, or other barriers, and housing of a suitable design.
(f) For purposes of this subdivision "nontraditional
agriculture" and "nontraditional agricultural products" includes
but is not limited to aquaculture as defined in section 17.47,
subdivision 2, and the production of animals domesticated from
wild stock, either native or nonnative, that are kept in
confinement by the owner.
Sec. 2. [17.139] [MEMORANDUM OF AGREEMENT AMONG STATE
AGENCIES ON INSPECTIONS OF AGRICULTURAL OPERATIONS.]
The commissioner shall develop memoranda of agreement among
all state and federal agencies that have authority to inspect
property in agricultural use, as defined in section 17.81,
subdivision 4, to ensure that reasonable and effective protocols
are followed when inspecting sites in agricultural use. The
memorandum shall specify procedures that address, but are not
limited to, the following:
(1) when appropriate, advance notice to the agricultural
use landowner or operator;
(2) procedures for notification of the inspection results
or conclusions to the owner or operator; and
(3) special procedures as might be necessary, such as to
prevent the introduction of diseases.
Sec. 3. Minnesota Statutes 1993 Supplement, section
41B.044, subdivision 2, is amended to read:
Subd. 2. [ETHANOL DEVELOPMENT FUND.] There is established
in the state treasury an ethanol development fund. All
repayments of financial assistance granted under subdivision 1,
including principal and interest, must be deposited into this
fund. Interest earned on money in the fund accrues to the fund,
and money in the fund is appropriated to the commissioner of
agriculture for purposes of the ethanol production facility loan
program, including costs incurred by the authority to establish
and administer the program.
Sec. 4. [41B.046] [VALUE-ADDED AGRICULTURAL PRODUCT LOAN
PROGRAM.]
Subdivision 1. [DEFINITIONS.] For purposes of this section:
(1) "Agricultural product processing facility" means land,
buildings, structures, fixtures, and improvements located or to
be located in Minnesota and used or operated primarily for the
processing or production of marketable products from agriculture
crops, including waste and residues from agriculture crops, but
not including livestock or livestock products, poultry or
poultry products, or wood or wood products.
(2) "Value-added agricultural product" means a product
derived from agricultural crops, including waste and residues
from agricultural crops, but not including livestock or
livestock products, poultry or poultry products, or wood or wood
products, which are processed by an agricultural product
processing facility.
Subd. 2. [ESTABLISHMENT.] The authority shall establish
and implement a value-added agricultural product loan program to
help farmers finance the purchase of stock in a cooperative
proposing to build or purchase and operate an agricultural
product processing facility.
Subd. 3. [REVOLVING FUND.] There is established in the
state treasury a value-added agricultural product revolving fund
which is eligible to receive appropriations. All repayments of
financial assistance granted under subdivision 2, including
principal and interest, must be deposited into this fund.
Interest earned on money in the fund accrues to the fund, and
money in the fund is appropriated to the commissioner of
agriculture for purposes of the value-added agricultural loan
program, including costs incurred by the authority to establish
and administer the program.
Subd. 4. [ELIGIBILITY.] To be eligible for this program a
borrower must:
(1) be a resident of Minnesota or a domestic family farm
corporation as defined in section 500.24, subdivision 2;
(2) be a grower of the agricultural product which is to be
processed by an agricultural product processing facility;
(3) demonstrate an ability to repay the loan; and
(4) meet any other requirements which the authority may
impose by rule.
Subd. 5. [LOANS.] (a) The authority may participate in a
stock loan with an eligible lender to a farmer who is eligible
under subdivision 4. Participation is limited to 45 percent of
the principal amount of the loan or $24,000, whichever is less.
The interest rates and repayment terms of the authority's
participation interest may differ from the interest rates and
repayment terms of the lender's retained portion of the loan,
but the authority's interest rate must not exceed 50 percent of
the lender's interest rate.
(b) No more than 95 percent of the purchase price of the
stock may be financed under this program.
(c) Loans under this program must not be included in the
lifetime limitation calculated under section 41B.03, subdivision
1.
(d) Security for stock loans must be the stock purchased, a
personal note executed by the borrower, and whatever other
security is required by the eligible lender or the authority.
(e) The authority may impose a reasonable nonrefundable
application fee for each application for a stock loan. The
authority may review the fee annually and make adjustments as
necessary. The application fee is initially $50. Application
fees received by the authority must be deposited in the
value-added agricultural product revolving fund.
(f) Stock loans under this program will be made using money
in the value-added agricultural product revolving fund
established under subdivision 3.
(g) The authority may not grant stock loans in a cumulative
amount exceeding $2,000,000 for the financing of stock purchases
in any one cooperative.
Subd. 6. [RULES.] The authority may adopt rules necessary
for the administration of the program including rules which
establish a minimum cost of any agricultural product processing
facility for which financial assistance may be given to any
farmer to help finance the purchase of stock in a cooperative.
Sec. 5. Minnesota Statutes 1993 Supplement, section
80A.15, subdivision 2, is amended to read:
Subd. 2. The following transactions are exempted from
sections 80A.08 and 80A.16:
(a) Any sales, whether or not effected through a
broker-dealer, provided that no person shall make more than ten
sales of securities of the same issuer pursuant to this
exemption during any period of 12 consecutive months; provided
further, that in the case of sales by an issuer, except sales of
securities registered under the Securities Act of 1933 or
exempted by section 3(b) of that act, (1) the seller reasonably
believes that all buyers are purchasing for investment, and (2)
the securities are not advertised for sale to the general public
in newspapers or other publications of general circulation or
otherwise, or by radio, television, electronic means or similar
communications media, or through a program of general
solicitation by means of mail or telephone.
(b) Any nonissuer distribution of an outstanding security
if (1) either Moody's, Fitch's, or Standard & Poor's Securities
Manuals, or other recognized manuals approved by the
commissioner contains the names of the issuer's officers and
directors, a balance sheet of the issuer as of a date not more
than 18 months prior to the date of the sale, and a profit and
loss statement for the fiscal year preceding the date of the
balance sheet, and (2) the issuer or its predecessor has been in
active, continuous business operation for the five-year period
next preceding the date of sale, and (3) if the security has a
fixed maturity or fixed interest or dividend provision, the
issuer has not, within the three preceding fiscal years,
defaulted in payment of principal, interest, or dividends on the
securities.
(c) The execution of any orders by a licensed broker-dealer
for the purchase or sale of any security, pursuant to an
unsolicited offer to purchase or sell; provided that the
broker-dealer acts as agent for the purchaser or seller, and has
no direct material interest in the sale or distribution of the
security, receives no commission, profit, or other compensation
from any source other than the purchaser and seller and delivers
to the purchaser and seller written confirmation of the
transaction which clearly itemizes the commission, or other
compensation.
(d) Any nonissuer sale of notes or bonds secured by a
mortgage lien if the entire mortgage, together with all notes or
bonds secured thereby, is sold to a single purchaser at a single
sale.
(e) Any judicial sale, exchange, or issuance of securities
made pursuant to an order of a court of competent jurisdiction.
(f) The sale, by a pledge holder, of a security pledged in
good faith as collateral for a bona fide debt.
(g) Any offer or sale to a bank, savings institution, trust
company, insurance company, investment company as defined in the
Investment Company Act of 1940, pension or profit sharing trust,
or other financial institution or institutional buyer, or to a
broker-dealer, whether the purchaser is acting for itself or in
some fiduciary capacity.
(h) Any sales by an issuer to the number of persons that
shall not exceed 25 persons in this state, or 35 persons if the
sales are made in compliance with Regulation D promulgated by
the Securities and Exchange Commission, Code of Federal
Regulations, title 17, sections 230.501 to 230.506, (other than
those designated in paragraph (a) or (g)), whether or not any of
the purchasers is then present in this state, if (1) the issuer
reasonably believes that all of the buyers in this state (other
than those designated in clause (g)) are purchasing for
investment, and (2) no commission or other remuneration is paid
or given directly or indirectly for soliciting any prospective
buyer in this state (other than those designated in clause (g)),
except reasonable and customary commissions paid by the issuer
to a broker-dealer licensed under this chapter, and (3) the
issuer has, ten days prior to any sale pursuant to this
paragraph, supplied the commissioner with a statement of issuer
on forms prescribed by the commissioner, containing the
following information: (i) the name and address of the issuer,
and the date and state of its organization; (ii) the number of
units, price per unit, and a description of the securities to be
sold; (iii) the amount of commissions to be paid and the persons
to whom they will be paid; (iv) the names of all officers,
directors and persons owning five percent or more of the equity
of the issuer; (v) a brief description of the intended use of
proceeds; (vi) a description of all sales of securities made by
the issuer within the six-month period next preceding the date
of filing; and (vii) a copy of the investment letter, if any,
intended to be used in connection with any sale. Sales that are
made more than six months before the start of an offering made
pursuant to this exemption or are made more than six months
after completion of an offering made pursuant to this exemption
will not be considered part of the offering, so long as during
those six-month periods there are no sales of unregistered
securities (other than those made pursuant to paragraph (a) or
(g)) by or for the issuer that are of the same or similar class
as those sold under this exemption. The commissioner may by
rule or order as to any security or transaction or any type of
security or transaction, withdraw or further condition this
exemption, or increase the number of offers and sales permitted,
or waive the conditions in clause (1), (2), or (3) with or
without the substitution of a limitation or remuneration.
(i) Any offer (but not a sale) of a security for which a
registration statement has been filed under sections 80A.01 to
80A.31, if no stop order or refusal order is in effect and no
public proceeding or examination looking toward an order is
pending; and any offer of a security if the sale of the security
is or would be exempt under this section. The commissioner may
by rule exempt offers (but not sales) of securities for which a
registration statement has been filed as the commissioner deems
appropriate, consistent with the purposes of sections 80A.01 to
80A.31.
(j) The offer and sale by a cooperative association
organized under chapter 308A or under the laws of another state,
of its securities when the securities are offered and sold only
to its members, or when the purchase of the securities is
necessary or incidental to establishing membership in such
association the cooperative, or when such securities are issued
as patronage dividends. This paragraph applies to a cooperative
organized under the laws of another state only if the
cooperative has filed with the commissioner a consent to service
of process under section 80A.27, subdivision 7, and has, not
less than ten days prior to the issuance or delivery, furnished
the commissioner with a written general description of the
transaction and any other information that the commissioner
requires by rule or otherwise.
(l) The issuance and delivery of any securities of one
corporation to another corporation or its security holders in
connection with a merger, exchange of shares, or transfer of
assets whereby the approval of stockholders of the other
corporation is required to be obtained, provided, that the
commissioner has been furnished with a general description of
the transaction and with other information as the commissioner
by rule prescribes not less than ten days prior to the issuance
and delivery.
(m) Any transaction between the issuer or other person on
whose behalf the offering is made and an underwriter or among
underwriters.
(n) The distribution by a corporation of its or other
securities to its own security holders as a stock dividend or as
a dividend from earnings or surplus or as a liquidating
distribution; or upon conversion of an outstanding convertible
security; or pursuant to a stock split or reverse stock split.
(o) Any offer or sale of securities by an affiliate of the
issuer thereof if: (1) a registration statement is in effect
with respect to securities of the same class of the issuer and
(2) the offer or sale has been exempted from registration by
rule or order of the commissioner.
(p) Any transaction pursuant to an offer to existing
security holders of the issuer, including persons who at the
time of the transaction are holders of convertible securities,
nontransferable warrants, or transferable warrants exercisable
within not more than 90 days of their issuance, if: (1) no
commission or other remuneration (other than a standby
commission) is paid or given directly or indirectly for
soliciting any security holder in this state; and (2) the
commissioner has been furnished with a general description of
the transaction and with other information as the commissioner
may by rule prescribe no less than ten days prior to the
transaction.
(q) Any nonissuer sales of any security, including a
revenue obligation, issued by the state of Minnesota or any of
its political or governmental subdivisions, municipalities,
governmental agencies, or instrumentalities.
Sec. 6. Minnesota Statutes 1992, section 180.03, is
amended by adding a subdivision to read:
Subd. 5. Upon written notice to the county mine inspector,
a person, firm, or corporation that is actively and exclusively
engaged in the business of cold water aquaculture shall be
exempt from the requirements of subdivision 3. The exemption
shall only apply to those portions of idle or abandoned open pit
mines that are actively being used for aquaculture operations
and that are owned by the person, firm, or corporation. A
landowner exempted assumes all responsibility for inspection and
safety measures pertaining to the affected parcels of land and
the county mine inspector is relieved of inspection
requirements. The notice provided to the county mine inspector
pursuant to this subdivision shall be annual and shall be filed
with the county mine inspector's office by January 15 of each
year. The notice shall describe the affected parcels of land
and shall provide a sworn affidavit by the landowner that the
subject property will be actively and exclusively used for
aquaculture purposes during the calendar year. Failure to
comply with the notice requirement of this subdivision makes the
idle or abandoned open pit mines subject to the provisions of
subdivision 3.
Sec. 7. Minnesota Statutes 1992, section 297A.25, is
amended by adding a subdivision to read:
Subd. 59. [FARM MACHINERY.] From July 1, 1994, until June
30, 1995, the gross receipts from the sale of used farm
machinery are exempt.
Sec. 8. [346.58] [DOGS AND CATS; BEST MANAGEMENT STANDARDS
FOR CARE BY DEALERS, COMMERCIAL BREEDERS, AND BROKERS.]
The commissioner of agriculture shall consult with
interested persons, including but not limited to persons
representing dog and cat dealers, breeders, and brokers, the
Minnesota federated humane society, the Minnesota council for
dog clubs, the American dog owners association, the board of
animal health, the Minnesota purebred dog breeders association,
the Minnesota citizens for animal care, the United States
Department of Agriculture, and the Minnesota veterinary medical
association. The commissioner shall issue an order containing
best management standards of care for dogs and cats by dealers,
commercial breeders, and brokers. These standards are not
subject to chapter 14. The commissioner shall urge dealers,
commercial breeders, and brokers to follow the standards issued
in the order.
Sec. 9. [DOGS AND CATS; CARE RECOMMENDATIONS.]
The commissioner of agriculture shall make recommendations
to the 1995 legislature on changes to statutory dog and cat care
standards in relation to the commercial breeding and sale of
dogs and cats. The commissioner shall recommend enacting into
law standards that, if violated, are serious enough to warrant a
civil or criminal penalty and shall also recommend changes in
law to improve the ease of enforcement in Minnesota Statutes,
sections 325F.79 to 325F.792, and other laws related to animal
cruelty.
Sec. 10. Laws 1993, chapter 172, section 7, subdivision 3,
is amended to read:
Subd. 3. Promotion and Marketing
2,142,000 1,142,000
Summary by Fund
General 1,959,000 959,000
Special Revenue 183,000 183,000
Notwithstanding Minnesota Statutes,
section 41A.09, subdivision 3, the
total payments from the ethanol
development account to all producers
may not exceed $15,800,000 for the
biennium ending June 30, 1995. In
fiscal year 1994, the commissioner
shall first reimburse producers up to
$981,024 for eligible, unpaid claims
accumulated through June 30, 1993.
$1,000,000 is appropriated to the
ethanol development fund established in
Minnesota Statutes, section 41B.044,
subdivision 2, in 1994 for use by the
rural finance authority for purposes of
assisting in the finance of ethanol
production facilities in Minnesota.
Any amount of this appropriation that
remains unencumbered at the end of any
biennium does not revert to the general
fund but remains available as a
revolving account.
$100,000 the first year and $100,000
the second year are for ethanol
promotion and public education.
$100,000 the first year and $100,000
the second year must be spent for the
WIC coupon program.
$45,000 is appropriated in each year
for a project to expand agriculture
opportunities for the Hmong and other
Southeast Asian farmers by expansion of
the existing market base and to target
new wholesale and retail markets. The
money may also be used to expand the
wholesale and retail market for other
groups involved in direct marketing
efforts such as alternative meat and
food products. The department must
report on the project to the finance
committees by January 15, 1995.
$71,000 the first year and $71,000 the
second year are for transfer to the
Minnesota grown matching account and
may be used as grants for Minnesota
grown promotion under Minnesota
Statutes, section 17.109.
$183,000 the first year and $183,000
the second year are from the
commodities research and promotion
account in the special revenue fund.
Sec. 11. [FARM AND SMALL BUSINESS INTEREST BUY-DOWN
PROGRAMS; DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] The definitions in this
section apply to sections 11 to 18.
Subd. 2. [COMMISSIONER.] "Commissioner" means the
commissioner of agriculture.
Subd. 3. [ELIGIBLE BORROWER.] "Eligible borrower" means a
farmer or small business operator who applies to a participating
lender for a loan and meets all qualifications established in
section 12 and any further qualifications that may be announced
by the commissioner.
Subd. 4. [FARMER.] "Farmer" means a state resident, a
domestic family farm corporation, or a family farm partnership
as defined in Minnesota Statutes, section 500.24, subdivision 2,
operating a farm within the state.
Subd. 5. [FARM LOAN.] "Farm loan" means an original,
extended, or renegotiated loan or line of credit obtained by a
farmer from a lender for the purpose of financing the operations
of a farm. A farm loan includes an open line of credit even
though the maximum principal amount of the line of credit may
not be drawn at any one time. A farm loan eligible for interest
buy-down must have a maturity date of November 30, 1995, or
earlier.
Subd. 6. [INTEREST BUY-DOWN.] "Interest buy-down" means a
reduction in the effective interest rate on a farm loan or a
small business loan to an eligible borrower due to partial
payment of interest costs by the commissioner and partial
reduction of interest costs by the participating lender.
Subd. 7. [LENDER.] "Lender" means a bank, credit union, or
savings and loan association chartered by the state or federal
government, a unit of the farm credit system, the Federal
Deposit Insurance Corporation, or another financial institution
approved by the commissioner.
Subd. 8. [PARTICIPATING LENDER.] "Participating lender"
means a lender who has been granted participating lender status
by the commissioner.
Subd. 9. [SMALL BUSINESS.] "Small business" means a
business entity as defined in Minnesota Statutes, section
645.445, with its principal place of business in Minnesota.
Subd. 10. [SMALL BUSINESS LOAN.] "Small business loan"
means an original, extended, or renegotiated loan or line of
credit obtained by a small business for purposes of financing
the operations of a small business. A small business loan
eligible for interest buy-down must have a maturity date of
November 30, 1995, or earlier.
Sec. 12. [ELIGIBILITY; FARM LOAN.]
A farmer is eligible for the farm loan interest buy-down
program under this article if a participating lender determines
that the farmer meets the criteria in this section.
(a) The farmer suffered significant losses during 1993 from
a natural disaster and the farm operation faces economic stress
without the assistance of the farm loan interest buy-down
program. A determination of significant loss and economic
stress by a lender is deemed reasonable and accurate without
further audit or substantiation.
(b) The farmer has a reasonable opportunity for long-term
financial viability in the farmer's current farm operation. A
determination of financial viability by a lender is deemed to be
reasonable and accurate without further audit or substantiation.
Sec. 13. [ELIGIBILITY; SMALL BUSINESS LOAN.]
A small business is eligible for the small business loan
interest buy-down program if a participating lender determines
that the small business meets the criteria in this section.
(a) The small business suffered significant losses during
1993 from a natural disaster and the small business faces
economic stress without the assistance of the small business
loan interest buy-down program. A determination of significant
loss and economic stress by a lender is deemed reasonable and
accurate without further audit or substantiation.
(b) The small business has a reasonable opportunity for
long-term financial viability in the small business's current
operation. A determination of financial viability by a lender
is deemed to be reasonable and accurate without further audit or
substantiation.
Sec. 14. [LENDER ELIGIBILITY; OBLIGATIONS; TIMELY
APPLICATION.]
Subdivision 1. [ELIGIBLE PARTICIPATING LENDER STATUS.] A
lender who meets the requirements established by the
commissioner must be approved as a participating lender.
Subd. 2. [RECEIPT OF APPLICATIONS FOR INTEREST
BUY-DOWN.] A participating lender shall receive and evaluate
loan applications from a farmer or small business. An eligible
borrower must complete a loan application with a participating
lender before December 31, 1994. In determining whether to make
a farm or small business loan, the participating lender may use
criteria in addition to those in sections 12 and 13.
Subd. 3. [MAXIMUM INTEREST RATE.] To qualify for interest
buy-down payments, a participating lender shall offer to make a
farm or small business loan to an eligible borrower at a rate of
interest equivalent to that offered to other borrowers having
similar security and financial status, less the lender's
contribution under the program. The commissioner, in
cooperation with the commissioner of commerce, may use
appropriate means to verify that the interest rate available to
an eligible borrower is substantially the same as that available
to other borrowers.
Subd. 4. [PRIORITY.] Properly completed applications for
the interest buy-down program take priority in the order they
are received by the commissioner.
Sec. 15. [RESPONSIBILITIES OF COMMISSIONER.]
Subdivision 1. [ANNOUNCEMENT OF PROGRAM
PROCEDURES.] Within 30 days after the effective date of sections
11 to 18, the commissioner shall announce procedures for the
interest buy-down program.
Subd. 2. [PREPARATION AND DISTRIBUTION OF LENDER
PARTICIPATION FORMS.] The commissioner, in cooperation with the
commissioner of commerce, shall prepare and distribute forms and
instructions, including forms for the statement required under
section 18, to all lenders in the state.
Subd. 3. [APPROVAL OF APPLICATIONS FOR INTEREST BUY-DOWN
PAYMENT.] (a) The commissioner shall review, within five working
days of submission by a participating lender, a properly
completed application for interest buy-down payments on a farm
or small business loan. If a participating lender does not
receive written notice that the commissioner has denied interest
buy-down payments within seven working days, the borrower is an
eligible borrower and interest buy-down payments on the farm or
small business loan are approved by the commissioner.
(b) All applications received by the commissioner after
appropriated interest buy-down program funds have been
encumbered, plus an amount anticipated to become available
because of loans that may be retired early, must be returned
immediately to the lender with an explanation that participation
in the interest buy-down program is denied due to prior
commitment of available program funds.
Subd. 4. [BUY-DOWN PAYMENTS TO PARTICIPATING
LENDERS.] Within 60 days after a request by a participating
lender, the commissioner shall pay to the participating lender
one-half of the expected interest buy-down amount. The balance
of the state contribution must be paid by the commissioner to
the participating lender within 30 days after the loan matures
or is repaid in full and the request is submitted by the
participating lender. All interest buy-down payments under this
article must be made by joint-payee checks in the name of the
participating lender and the eligible borrower.
Sec. 16. [STATE CONTRIBUTION; MAXIMUM LOAN.]
The commissioner shall pay to a participating lender for
the first $50,000 of an approved farm or small business loan
made to an eligible borrower an amount equal to an annual rate
of three percent interest on the loan, but the payment may not
exceed $2,250 per farm or small business loan.
Sec. 17. [LENDER CONTRIBUTION.]
A participating lender shall provide a reduction in
interest rate for the first $50,000 of an approved farm or small
business loan made to an eligible borrower in an amount equal to
an annual rate of at least one-half of one percent interest on
the loan.
Sec. 18. [BORROWER STATEMENT.]
No person may receive a farm or small business loan under
sections 11 to 18 until the person has signed a statement
acknowledging that the relief provided in the interest buy-down
program is a form of government spending that has been made
available to the person through the collection of taxes. The
commissioner must retain a copy of the statement from each
recipient.
Sec. 19. [APPROPRIATION; INTEREST BUY-DOWN.]
(a) 5,000,000 is appropriated from the general fund to the
commissioner of agriculture for the interest buy-down program in
sections 11 to 18. Any unencumbered balance remaining on July
1, 1995, does not cancel but is transferred to and becomes
additional funding for the emergency job creation program in
section 22. Not more than $200,000 of this appropriation may be
used by the commissioner for program administrative costs.
(b) The commissioner shall not approve an application for a
loan under the interest buy-down program after the appropriation
for the program, plus an amount anticipated to become available
because of loans that may be retired early, has been fully
committed.\H* (Section 19 was vetoed by the governor.)\h
Sec. 20. [APPROPRIATION; GRAIN GRADING AND TESTING
EQUIPMENT; PILOT CHECK-TEST PROGRAM.]
(a) $250,000 is appropriated from the general fund to the
commissioner of agriculture as supplemental funding for
activities of the grain inspection and weighing programs of the
department. The additional funding is for a thorough, properly
documented, review of the accuracy of equipment used by country
elevators to test grain for determination of price. The sample
selection, equipment testing, and analytical procedures must be
performed using commonly accepted protocols. Tolerances to be
used for determination of a re-test are those adopted in rule
pursuant to Minnesota Statutes, section 17B.041.
(b) The pilot check-testing program must be conducted
throughout the agricultural areas of the state at country
elevators selected by the commissioner. Country elevators in
the selected counties must undergo check-testing an average of
four times per year, including both peak harvest periods and
nonharvest periods. Check-testing must include all grains the
elevator handles in significant quantity.
(c) Not later than February 15, 1996, the commissioner
shall report to the committees of the Minnesota senate and house
of representatives on the activities and findings of the pilot
check-test program, along with recommendations for ways to
assure increased accuracy in grain testing.
(d) This appropriation is available until December 31,
1995.\H* (Section 20 was vetoed by the governor.)\h
Sec. 21. [APPROPRIATION; FEDERAL EMERGENCY MANAGEMENT
ASSISTANCE MATCH.]
$2,908,000 is appropriated from the general fund to the
commissioner of public safety to provide matching funds for
federal emergency management assistance funds received in flood
damaged counties in 1993.
Sec. 22. [APPROPRIATION; EMERGENCY JOB CREATION;
DEPARTMENT OF JOBS AND TRAINING.]
$2,000,000 is appropriated from the general fund to the
commissioner of jobs and training to supplement the federal
emergency job creation program. This appropriation is available
when federal funding for the emergency job creation program in
Minnesota is exhausted. The commissioner may allow projects
that would not have been funded by the federal government in
order to fund public projects, employing flood victims, that are
not necessarily related to flood damage, but which local
governments are unable to undertake because of flood expenses.
The commissioner may also fund the leasing or other use of
specialized equipment and services for projects undertaken with
this appropriation. This appropriation is available until
August 31, 1995.\H* (Section 22 was vetoed by the governor.)\h
Sec. 23. [APPROPRIATION; WHEAT SCAB RESEARCH.]
$477,000 is appropriated from the general fund to the
University of Minnesota for the fiscal biennium ending June 30,
1995, for research into the problem of wheat scab (vomitoxin) in
Minnesota. The research should be designed to minimize the
adverse effects of future wheat scab infestations in the short
term while seeking to fully eliminate the problem in the long
term.
Sec. 24. [APPROPRIATION; FARM ADVOCATES.]
$100,000 is appropriated from the general fund to the
commissioner of agriculture to supplement other sources of
funding for the farm advocates program. This appropriation is
available until June 30, 1995.
Sec. 25. [APPROPRIATION; AGRICULTURAL RESOURCE CENTERS.]
(a) $100,000 is appropriated from the general fund to the
commissioner of agriculture for supplemental funding for grants
to agricultural information centers. No match is needed for the
release of these supplemental state dollars. This appropriation
is available until June 30, 1995.\H* (The preceding material\h
\Hbeginning "Sec. 25." and ending "1995" was vetoed by the\h
\Hgovernor.)\h
(b) For money appropriated in Laws 1993, chapter 172,
section 7, subdivision 4, for agricultural information centers,
a match is not required for fiscal year 1994 appropriations and
a match of four state dollars for each $1 of matching nonstate
money is required for fiscal year 1995 appropriations.
Sec. 26. [APPROPRIATION; LEGAL ASSISTANCE TO FARMERS.]
$200,000 is appropriated from the general fund to the
supreme court as supplemental funding for legal assistance to
farmers in accordance with Minnesota Statutes, section 480.242,
subdivision 5. This appropriation is available until June 30,
1995. This appropriation shall be in addition to other
appropriations received for legal assistance. An entity
receiving funding under this section may not have other sources
of state funding reduced based on the funding received.\H*\h
\H(Section 26 was vetoed by the governor.)\h
Sec. 27. [APPROPRIATION; FARM FINANCIAL ASSISTANCE; STATE
BOARD OF TECHNICAL COLLEGES.]
(a) $150,000 is appropriated from the general fund to the
state board of technical colleges for farm and small business
management programs using the FINPAK computer software program
and other training and assistance to provide financial
information to farmers affected by adverse weather conditions in
1993 to be used:
(1) for teleconferencing to provide information to farm and
small business operators from federal and state agencies; and
(2) for support, assistance, and travel expenses for
educators to target emergency assistance to persons in counties
affected by adverse weather conditions in 1993.
(b) The board must coordinate the delivery of services with
the Minnesota extension service to ensure broad coverage of the
state for areas affected by adverse weather conditions in 1993.
This appropriation is available until June 30, 1995.
Sec. 28. [APPROPRIATION; FARM FINANCIAL ASSISTANCE;
MINNESOTA EXTENSION SERVICE.]
(a) $100,000 is appropriated from the general fund to the
University of Minnesota for the Minnesota extension service for
farm and small business management programs using the FINPAK
computer software program and other training and assistance to
provide financial information to farmers affected by adverse
weather conditions in 1993 to be used:
(1) by the center for farm financial management for
computer software upgrades and support of educators providing
financial information to farmers; and
(2) for support, assistance, and travel expenses for
educators to target emergency assistance to persons in counties
affected by adverse weather conditions in 1993.
(b) The Minnesota extension service must coordinate the
delivery of services with the state board of technical colleges
to ensure broad coverage of the state for areas affected by
adverse weather conditions in 1993. This appropriation is
available until June 30, 1995.\H* (Section 28 was vetoed by the\h
\Hgovernor.)\h
Sec. 29. [APPROPRIATION; SMALL BUSINESS DISASTER REVOLVING
LOAN FUND.]
$900,000 is appropriated from the general fund to the
commissioner of trade and economic development to supplement
funding of programs through the federal Economic Development
Administration. Use of these funds may include providing local
matches to federal dollars through the regional development
commissions or alternative groups. This appropriation is
available until June 30, 1995.
Sec. 30. [APPROPRIATION; ETHANOL PRODUCTION.]
$1,475,000 is appropriated from the general fund to the
ethanol development fund.
Sec. 31. [APPROPRIATION; AGRICULTURAL UTILIZATION RESEARCH
INSTITUTE.]
$1,000,000 is appropriated from the general fund to the
agricultural utilization research institute for programs
targeted to crops or regions that suffered losses in 1993. This
appropriation is available until June 30, 1995.\H* (Section 31 was\h
\Hvetoed by the governor.)\h
Sec. 32. [APPROPRIATION; DAIRY LITIGATION.]
(a) $55,000 is appropriated from the general fund to the
supreme court as a one-time appropriation for family farm legal
assistance for financially distressed dairy farmers'
difficulties with the federal milk marketing order system under
Minnesota Statutes, section 480.242, subdivision 5, clause (2).
This appropriation shall be in addition to other appropriations
received for legal assistance. An entity receiving funding
under this section may not have other sources of state funding
reduced based on the funding received. This appropriation is
available until June 30, 1995. The income eligibility rules
described in Minnesota Statutes, section 480.242, subdivision 2,
paragraph (b), are waived for purposes of this appropriation.
(b) The $20,000 balance on May 22, 1993, of amounts
authorized under Laws 1992, chapter 513, article 2, section 6,
subdivision 5, is transferred to the general fund and is
appropriated to the supreme court for family farm legal
assistance rendered from July 1, 1993, through June 30, 1995,
for financially distressed dairy farmers' difficulties with the
federal milk marketing order system under Minnesota Statutes,
section 480.242, subdivision 5, clause (2). The income
eligibility rules described in Minnesota Statutes, section
480.242, subdivision 2, paragraph (b), are waived for purposes
of this appropriation.
Sec. 33. [APPROPRIATION; BEAVER CONTROL.]
$50,000 is appropriated to the commissioner of agriculture
for a grant to the beaver damage control joint powers board
formed by Beltrami, Clearwater, Marshall, Pennington, Polk, and
Red Lake counties, for the purpose of beaver damage control.
The grant must be matched by at least $30,000 from the joint
powers board. This appropriation is available until June 30,
1995.
Sec. 34. [APPROPRIATION; GRAIN INSPECTION AND WEIGHING
ACCOUNT DEFICIT.]
$200,000 is appropriated from the general fund to the grain
inspection and weighing account established in Minnesota
Statutes, chapter 17B, and from the account to the commissioner
of agriculture as needed for carrying out the purposes of
Minnesota Statutes, chapter 17B.
Sec. 35. [APPROPRIATION; VALUE-ADDED AGRICULTURAL PRODUCT
LOAN PROGRAM.]
$1,000,000 is appropriated from the general fund to the
value-added agricultural product revolving fund for use by the
rural finance authority as provided in section 4. The
commissioner of agriculture may use any portion of the fund as a
grant to a city to attract and provide an incentive to locate an
agricultural product processing facility whose project cost is
estimated to be at least $100,000,000. $750,000 of the amount
appropriated to the fund shall be available to make such a grant
to a city until December 31, 1994, and after that date any
unused portion of this available grant money shall be
transferred to the commissioner for the interest buy-down
program in sections 11 to 18.
Sec. 36. [APPROPRIATION; CORPORATE FARMING LAW TASK
FORCE.]
$40,000 is appropriated from the general fund to the
commissioner of agriculture to provide staff and research
support for the corporate farming law task force.
Sec. 37. [APPROPRIATION; HIGH OIL SOYBEANS RESEARCH.]
$150,000 is appropriated from the general fund to the
commissioner of agriculture for the fiscal biennium ending June
30, 1995, to make research grants to the University of Minnesota
or other educational institutions in Minnesota to develop higher
protein, higher oil content varieties of soybeans that would
grow in Minnesota.
Sec. 38. [APPROPRIATION; STATE PARK ROAD ACCOUNT.]
$250,000 is appropriated from the general fund to the
commissioner of transportation with instructions that it be
added to the state park road account under Minnesota Statutes,
section 162.06, subdivision 5.\H* (Section 38 was vetoed by the\h
\Hgovernor.)\h
Sec. 39. [APPROPRIATION; DAIRY LEADERS ROUNDTABLE.]
$50,000 is appropriated from the general fund to the
commissioner of agriculture for a grant to the dairy leaders
round table. This appropriation must be matched with nonstate
funds.
Sec. 40. [APPROPRIATION; FEEDLOT MANURE MANAGEMENT
ADVISORY COMMITTEE.]
$5,000 is appropriated from the general fund to the
commissioner of agriculture for payment of expenses for the
feedlot and manure management advisory committee.
Sec. 41. [REPORT OF AGENCIES.]
Before January 1, 1996, the commissioner of public safety
shall coordinate and present to the legislature a report from
all departments, agencies, and organizations receiving funding
under this act regarding the specific uses of such funding and
the effects of assistance provided under this act to the
agricultural economy and rural communities affected by natural
disasters in 1993.
Sec. 42. [EFFECTIVE DATE.]
Sections 3 and 10 are effective retroactive to July 1, 1993.
Sections 1, 2, 4 to 9, and 11 to 42 are effective the day after
final enactment.
Presented to the governor May 6, 1994
Signed by the governor May 10, 1994, 5:58 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes