1.1.................... moves to amend H.F. No. 1122, the delete everything amendment
1.2(H1122DE1), as follows:
1.3Page 3, delete lines 1 to 2
1.4Page 4, delete lines 17 to 19
1.5Page 7, delete lines 25 to 36
1.6Page 8, delete lines 1 to 7
1.7Page 9, delete lines 3 to 5 and insert:
1.8"
$1,277,000 the first year and $277,000
1.9the second year are for the 21st century
1.10agricultural reinvestment program in new
1.11Minnesota Statutes, section 41A.12. Priority
1.12must be given to livestock programs under
1.13Minnesota Statutes, section 17.118. The
1.14commissioner may use up to 4-1/2 percent
1.15of this appropriation for costs incurred to
1.16administer the program."
1.17Page 48, after line 19, insert:
1.18 "Sec. 79. Minnesota Statutes 2008, section 41A.09, subdivision 2a, is amended to read:
1.19 Subd. 2a.
Definitions. For the purposes of this section, the terms defined in this
1.20subdivision have the meanings given them.
1.21(a) "Ethanol" means fermentation ethyl alcohol derived from agricultural products,
1.22including potatoes, cereal grains, cheese whey, and sugar beets; forest products; or
1.23other renewable resources, including residue and waste generated from the production,
1.24processing, and marketing of agricultural products, forest products, and other renewable
1.25resources, that:
1.26(1) meets all of the specifications in ASTM specification D4806-04a; and
1.27(2) is denatured as specified in Code of Federal Regulations, title 27, parts 20 and 21.
2.1(b) "Ethanol plant" means a plant at which ethanol is produced.
2.2(c) "Commissioner" means the commissioner of agriculture.
2.3(d) "Rural economic infrastructure" means the development of activities that
2.4will enhance the value of agricultural crop or livestock commodities or by-products
2.5or waste from farming operations through new and improved value-added conversion
2.6processes and technologies, the development of more timely and efficient infrastructure
2.7delivery systems, and the enhancement of marketing opportunities. "Rural economic
2.8infrastructure" also means land, buildings, structures, fixtures, and improvements located
2.9or to be located in Minnesota and used or operated primarily for the processing or the
2.10support of production of marketable products from agricultural commodities or wind
2.11energy produced in Minnesota.
2.12 Sec. 80. Minnesota Statutes 2008, section 41A.09, subdivision 3a, is amended to read:
2.13 Subd. 3a.
Ethanol producer payments. (a) The commissioner shall make cash
2.14payments to producers of ethanol located in the state that have begun production at a
2.15specific location by June 30, 2000. For the purpose of this subdivision, an entity that holds
2.16a controlling interest in more than one ethanol plant is considered a single producer.
2.17The amount of the payment for each producer's annual production, except as provided
2.18in paragraph (c), is 20 cents per gallon for each gallon of ethanol produced at a specific
2.19location on or before June 30, 2000, or ten years after the start of production, whichever is
2.20later.
Annually, within 90 days of the end of its fiscal year, an ethanol producer receiving
2.21payments under this subdivision must file a disclosure statement on a form provided by
2.22the commissioner. The initial disclosure statement must include a summary description
2.23of the organization of the business structure of the claimant, a listing of the percentages
2.24of ownership by any person or other entity with an ownership interest of five percent or
2.25greater, and a copy of its annual audited financial statements, including the auditor's report
2.26and footnotes. The disclosure statement must include information demonstrating what
2.27percentage of the entity receiving payments under this section is owned by farmers or
2.28other entities eligible to farm or own agricultural land in Minnesota under the provisions
2.29of section
500.24. Subsequent annual reports must reflect noncumulative changes in
2.30ownership of ten percent or more of the entity. The report need not disclose the identity of
2.31the persons or entities eligible to farm or own agricultural land with ownership interests,
2.32individuals residing within 30 miles of the plant, or of any other entity with less than
2.33ten percent ownership interest, but the claimant must retain information within its files
2.34confirming the accuracy of the data provided. This data must be made available to the
2.35commissioner upon request. Not later than the 15th day of February in each year the
3.1commissioner shall deliver to the chairs of the standing committees of the senate and the
3.2house of representatives that deal with agricultural policy and agricultural finance issues
3.3an annual report summarizing aggregated data from plants receiving payments under this
3.4section during the preceding calendar year. Audited financial statements and notes and
3.5disclosure statements submitted to the commissioner are nonpublic data under section
3.613.02, subdivision 9. Notwithstanding the provisions of chapter 13 relating to nonpublic
3.7data, summaries of the submitted audited financial reports and notes and disclosure
3.8statements will be contained in the report to the committee chairs and will be public data.
3.9 (b) No payments shall be made for ethanol production that occurs after June 30,
3.102010. A producer of ethanol shall not transfer the producer's eligibility for payments
3.11under this section to an ethanol plant at a different location.
3.12 (c) If the level of production at an ethanol plant increases due to an increase in the
3.13production capacity of the plant, the payment under paragraph (a) applies to the additional
3.14increment of production until ten years after the increased production began. Once a
3.15plant's production capacity reaches 15,000,000 gallons per year, no additional increment
3.16will qualify for the payment.
3.17 (d) Total payments under paragraphs (a) and (c) to a producer in a fiscal year may
3.18not exceed $3,000,000.
3.19 (e) By the last day of October, January, April, and July, each producer shall file a
3.20claim for payment for ethanol production during the preceding three calendar months.
3.21A producer that files a claim under this subdivision shall include a statement of the
3.22producer's total ethanol production in Minnesota during the quarter covered by the claim.
3.23For each claim and statement of total ethanol production filed under this subdivision,
3.24the volume of ethanol production must be examined by an independent certified public
3.25accountant in accordance with standards established by the American Institute of Certified
3.26Public Accountants.
3.27 (f) Payments shall be made November 15, February 15, May 15, and August 15. A
3.28separate payment shall be made for each claim filed. Except as provided in paragraph (g),
3.29the total quarterly payment to a producer under this paragraph may not exceed $750,000.
3.30 (g) Notwithstanding the quarterly payment limits of paragraph (f), the commissioner
3.31shall make an additional payment in the fourth quarter of each fiscal year to ethanol
3.32producers for the lesser of: (1) 20 cents per gallon of production in the fourth quarter of the
3.33year that is greater than 3,750,000 gallons; or (2) the total amount of payments lost during
3.34the first three quarters of the fiscal year due to plant outages, repair, or major maintenance.
3.35Total payments to an ethanol producer in a fiscal year, including any payment under this
3.36paragraph, must not exceed the total amount the producer is eligible to receive based on
4.1the producer's approved production capacity. The provisions of this paragraph apply only
4.2to production losses that occur in quarters beginning after December 31, 1999.
4.3 (h) The commissioner shall reimburse ethanol producers for any deficiency in
4.4payments during earlier quarters if the deficiency occurred because of unallotment or
4.5because appropriated money was insufficient to make timely payments in the full amount
4.6provided in paragraph (a). Notwithstanding the quarterly or annual payment limitations in
4.7this subdivision, the commissioner shall begin making payments for earlier deficiencies in
4.8each fiscal year that appropriations for ethanol payments exceed the amount required to
4.9make eligible scheduled payments. Payments for earlier deficiencies must continue until
4.10the deficiencies for each producer are paid in full, except the commissioner shall not make
4.11a deficiency payment to an entity that no longer produces ethanol on a commercial scale
4.12at the location for which the entity qualified for producer payments, or to an assignee of
4.13the entity.
4.14 (i) The commissioner may
make direct payments to producers of rural economic
4.15infrastructure provide financial assistance under the 21st century agricultural reinvestment
4.16program in section 41A.12 with any amount of the annual appropriation for ethanol
4.17producer payments
and rural economic infrastructure that is in excess of the amount
4.18required to make scheduled ethanol producer payments and deficiency payments under
4.19paragraphs (a) to (h).
4.20 Sec. 81.
[41A.12] 21ST CENTURY AGRICULTURAL REINVESTMENT
4.21PROGRAM.
4.22 Subdivision 1. Establishment. The 21st century agricultural reinvestment program
4.23is established in order to promote the advancement of the state's agricultural and renewable
4.24energy industries.
4.25 Subd. 2. Activities authorized. For the purposes of this program, the commissioner
4.26may issue grants, loans, or other forms of financial assistance. Eligible activities include,
4.27but are not limited to, grants to livestock producers under the livestock investment grant
4.28program under section 17.118 and bioenergy awards made by the next generation energy
4.29board under section 41A.105.
4.30 Subd. 3. Oversight. The commissioner, in consultation with the chairs and ranking
4.31minority members of the house of representatives and senate committees with jurisdiction
4.32over agricultural finance, must allocate available funds among eligible uses, develop
4.33competitive eligibility criteria, and award funds on a needs basis."
4.34Renumber the sections in sequence and correct the internal references
4.35Amend the title accordingly