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S.F. No. 2226 - Agriculture and Housing Budget Bill, Articles 2 and 4 (Third Engrossment)
 
Author: Senator Torrey N. Westrom
 
Prepared By:
 
Date: April 25, 2019



 

ARTICLE 2. AGRICULTURE STATUTORY CHANGES

Section 1 [Agriculture emergency account] modifies spending authorization from the agriculture emergency account to be used only for responding to emergencies.

Section 2 [Noncommercial pesticide applicator fees] reduces the pesticide license application fee to $10 from $50 for certain contractors providing services to the commissioner of transportation.

Sections 3 to 6 [AFREC extension] extends the 40 cent per ton fertilizer surcharge and the Agricultural Fertilizer Research and Education program an additional ten years to 2030.

Section 7 [Industrial hemp definition] modifies the definition of “industrial hemp” to include seeds and plant derivatives.

Section 8 [Industrial hemp rules] allows for use of the expedited rulemaking process for industrial hemp rules to conform to the 2018 Federal Farm Bill.

Section 9 [Food handler fees] eliminates gross sales of liquor from the calculation of gross sales to determine the fee charged for wholesalers and liquor stores making their own ice.

Section 10 [Biomass definition] defines “biomass” for the purpose of the three Bioeconomy producer incentive programs.

Section 11 [Renewable chemical definition] modifies the term “renewable chemical” for the purpose of the three Bioeconomy producer incentive programs.

Section 12 [Advanced biofuel producer payments; minimum production level] decreases the minimum advanced biofuel production level to 1,500 million metric British thermal units (MMbtu) from 23,750 MMbtu to be eligible for producer payments.  This section also makes technical changes.

Section 13 [Advanced biofuel producer payments; raw materials] adds oil and animal fats as raw materials that may be used to produce advanced biofuel and be eligible for producer payments. This section also eliminates the first-come, first-served basis for payments.

Section 14 [Cellulosic biomass requirements; advanced biofuels] makes technical and clarifying changes related to advanced biofuel production incentive payments.

Section 15 [Renewable chemical producer payments; minimum production level] decreases the minimum renewable chemical production level to 250,000 pounds from 750,000 pounds to be eligible for producer payments.  This section also makes technical changes.

Section 16 [Renewable chemical producer payments clarification] clarifies blending of renewable chemicals and the eligibility for payment. This section also eliminates the first-come, first-served basis for payments.

Section 17 [Cellulosic biomass requirements; renewable chemicals] makes technical and clarifying changes related to renewable chemical production incentive payments.

Section 18 [Biomass thermal; eligibility] makes technical changes to the biomass thermal incentive payment eligibility.

Section 19 [Biomass thermal producer payments clarification] makes technical changes to the biomass thermal production incentive eligibility. This section also eliminates the first-come, first-served basis for payments.

Section 20 [Cellulosic biomass requirements; biomass thermal] makes technical and clarifying changes related to biomass thermal production incentive payments.

Section 21 [Dairy modernization and innovation loan program] creates a new dairy modernization and innovation loan program through the Rural Finance Authority using bond proceeds. The program will provides a loan participation of 45 percent up to $525,000. To qualify the farmer’s net worth in 2017 dollars cannot be more than $1.7 million.

Section 22 [Livestock equipment loan program] clarifies that the livestock equipment loan program may be used for robotic milking equipment.

Section 23 [Pasture definition] combines two existing definition of “pasture” for the purposes of the feedlot program and adds a category of sacrificial areas as temporarily exempt from vegetation requirements.

Section 24 [Feedlot regulation] provides that a feedlot permit cannot include restrictions on pasture in the vicinity of the feedlot and that the natural deposit of manure on pasture is not a discharge into waters of the state. This section also strikes one of the definitions of “pasture” in current law.

Section 25 [Pasture definition] strikes a definition of “pasture” in current law.

Section 26 [Grain buyers law; cash sales] clarifies the definition of “cash sale” under the grain buyers law.

Section 27 [Technical]

Section 28 [Grain buyers and storage account] provides that interest earned on the grain buyers and storage account is credited to the account.

Sections 29 and 30 [Grain buyers examination and fees] establish an examination and fees for grain buyers that is similar to what is required for grain storage facilities.

Section 31 [Grain buyers bond requirements] exempts grain buyers that only buy up to $100,000 in cash grain purchases in a year from the bond requirements.

Section 32 [Cash sales payment method] allows for a wire or mail payments to be considered cash sales.

Section 33 [Financial statement review and audit] requires a reviewed financial statement for all grain buyers and storage licensees with purchases under $5 million annually and an audited financial statement for buyers and storage licensees with purchases of $5 million or more annually. This section also: requires any board of directors to sign the financial statement; exempts grain buyers that only buy up to $100,000 in cash grain purchases in a year from the financial statement requirements; and requires the commissioner to annually provide information on the fiduciary duties to all persons required to sign financial statements.

Sections 34 to 36 [Oral contracts; voluntary extension of credit] provide that a written confirmation of an oral contract to buy grain through a voluntary extension of credit must be confirmed in writing within ten days and signed by both parties.

Sections 37 and 38 [Definitions; grain storage law] define “grain bank” and “temporary storage” for the purposes of the grain storage law.

Section 39 [Supplemental examinations] requires that any supplemental examinations of grain storage facilities must be conducted by the Department of Agriculture.

Section 40 [Bond alternative] allows grain storage facilities to deposit an deposit an irrevocable letter of credit in lieu of a bond.

Section 41 [Grain considered stored] provides that all grain in temporary storage must be owned by the grain storage licensee and that grain assigned to a grain bank is stored grain.

Section 42 [Schedule of examinations] eliminates the required second annual examination and provides that the need for additional examinations of grain storage facilities will be determined by the commissioner of agriculture.

Section 43 [Financial reports] provides that the financial reporting requirements for grain buyers also applies to grain storage facilities.

ARTICLE 4. HOUSING STATUTORY CHANGES.

Section 1 [Trailer use] provides for the overdimensional loads containing buildings, including modular and manufactured homes.

Section 2 [Manufactured home installer license fees] reduce the license fee for manufactured home installers to $180 from $300.

Section 3 [Definition] defines “modular home” for the purposes of the manufactured home park law as single-family dwellings that are substantially manufactured or constructed at an off-site location with final on-site assembly and attached to a permanent foundation site.

Section 4 [Placement of modular homes] provides that modular homes may be placed in manufactured home parks and classified as a manufactured home with prior approval of a manufactured home park owner and is subject to all rights, obligations, and duties of a manufactured home under state law.

Section 5 [Manufactured home installer license] modifies the licensing fee provisions for manufactured home installers to be consistent with other fee provisions.

Section 6 [Manufactured home park closing; neutral third party] provides that a qualified neutral third party for the purposes of manufactured home park closings must be familiar with manufactured housing and the closing provisions of Minnesota law.  The neutral third party must keep a detailed accounting of all payments from the manufactured home trust fund and provide the information to the manufactured park owner, the municipality, and the Housing Finance Agency.

Section 7 [Manufactured home park closing; right of first refusal] requires manufactured homeowners who are making an offer to meet the cash price for the manufactured home park to covenant and warrant that the land will be continued as a manufactured home park for at least six years after sale.

Section 8 [Manufactured home relocation trust fund] clarifies that manufactured home owners who do not submit their assessment to the park owner are not eligible for payment from the compensation fund and waives the annual assessment for any manufactured home park owner who has not received an assessment from the Commissioner of Management and Budget by August 30.

Section 9 [Relocation expenses; report] requires the neutral third party to process reimbursement payments within 14 days; increases the maximum amount that may be deducted for demolition and removal of a manufactured home to $3,000 from $1,000 when a manufactured home owner tenders title to the home in lieu of moving; moves the date required for the manufactured home relocation trust fund annual report to October 15 each year; and provides additional information on the annual manufactured home relocation trust fund annual report.

Section 10 [Reporting on manufactured home parks] requires the Department of Health and delegated local authorities to annually report to the Department of Management and Budget with the names, addresses, and other data on manufactured home parks licensed by the department or local authority.

Sections 11 and 12 [Housing improvement areas] clarifies that the housing improvement area process may be used by cities or other housing authorities to pay for improvements and assessed on the properties.

Section 13 [Manufactured home individual assistance grants] corrects the reference to the national standard for manufactured homes for down-payment assistance grants.

Section 14 [Manufactured home park infrastructure grants] adds park acquisition as eligible for the manufacture home park infrastructure grants.

Section 15 [Homeownership education, counseling, training, and capacity building grants; reporting] provides specific information that must be provided to the MHFA in an annual report by organizations receiving homeownership education, counseling, training, and capacity building grants, including evidence of the organization’s standing with the Department of Revenue and the Secretary of State. The MHFA is required to report each year on the information received to legislative housing committee and division members. An organization that does not report all of the information required is prohibited from future state funding.

Section 16 [Biennial report of the MHFA] requires information for each of the MHFA’s programs on the cost per unit of housing and the cost per square foot.

Section 17 [MHFA grants and loans; priorities] provides a goal for the MHFA of distributing loans and grants equally to metro and nonmetro areas, to prioritize programs in communities with lower infrastructure development costs, and post on their websute any scoring used to rank applications after final decisions are made.

Section 18 [Economic development and housing challenge grants] specifies that the economic development and housing challenge grant program is not subject to broad interpretation, defines “locally identified housing needs,” and clarifies that manufactured home parks are eligible for economic development and housing challenge grants.

Section 19 [Economic development and housing challenge grants] clarifies that manufactured home parks are eligible for economic development and housing challenge grants.

Section 20 [Economic development and housing challenge grants] defines “housing needs of the local work force” for economic development and housing challenge grants.

Section 21 [Housing infrastructure bonds] modifies the manufacture home park authorization for housing infrastructure bonds to expand the use to acquisition and remove income limitations.

Section 22 [Workforce and affordable homeownership development program] allows grants to cities and tribal governments under the workforce and affordable homeownership development program.

Sections 23 to 30 [Definitions] defines “aggregate bond limitation,” “AMI” (area median income),  “LITHC,” “preservation project,” “30 percent AMI residential rental project,” “50 percent AMI residential rental project,” “100 percent LIHTC project,” and “20 percent LIHTC project” for the purpose of issuing residential rental housing bonds under the Minnesota Bond Allocation Act.  Note that the definition for “aggregate bond limitation” provides a 55 percent limit on use of the bonds for residential rental projects.

Section 31 [Single family housing set aside; bond allocation] removes the single family housing set aside for housing bond pool allocations.

Section 32 [Small issue and public facilities pool] eliminates any reference to the housing pool that is being created separately in the next section.

Section 33 [Allocation application; housing pool] establishes a separate process for applying for allocations from the housing pool for residential rental projects.

Section 34 [Housing pool allocation] eliminates the delay in senior residential rental property projects to after May 15, and establishes priorities for funding projects based on the new terms defined: (1) preservation project; (2) 30 percent AMI residential rental project; (3) 50 percent AMI residential rental project; (4) 100 percent LIHTC project; (5) 20 percent LIHTC project; (6) other residential rental projects.

Section 35 [Application for residential rental projects; unified pool] modifies the general application process for the unified pool to apply to residential housing projects using the new defined terms. This section also eliminates the need to state whether the project is senior housing.

Section 36 [Allocation procedure; unified pool] provides a priority for housing projects based on whether it is a:  (1) preservation project; (2) 30 percent AMI residential rental project; (3) 50 percent AMI residential rental project; (4) 100 percent LIHTC project; (5) 20 percent LIHTC project; (6) other residential rental projects. This section also provides for random selection when two residential rental housing projects are on the same priority level and the bonding authority is not available for both; and that projects that do not receive funding will be funded in the future before new projects at the same priority level.

Section 37 [Advances to the manufactured home relocation trust fund] allows for advances of up to $400,000 from state appropriations to the manufactured home relocation trust fund, if the balance in the fund is insufficient to pay all claims.  All advances would be reimbursed.

Section 38 [Itasca County license fee increase] creates a special local law for Itasca County that limits future license fee increases to ten percent annually on homeowners who pay an annual license fee to the owner of the underlying property. The special local law will need to be approved by the Itasca County Board.

 
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