Bill Text: MN SF1713 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Immigrant and minority pilot microloan program establishment and agroforestry loan program repeal
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-03-13 - Author stricken Nelson [SF1713 Detail]
Download: Minnesota-2011-SF1713-Introduced.html
1.2relating to agriculture; establishing an immigrant and minority microloan
1.3program; modifying provisions related to the Rural Finance Authority;amending
1.4Minnesota Statutes 2010, sections 41B.036; 41B.048, subdivision 6; 41B.055,
1.5subdivision 1; 41B.06; proposing coding for new law in Minnesota Statutes,
1.6chapter 41B; repealing Minnesota Statutes 2010, section 41B.048, subdivision 7.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 41B.036, is amended to read:
1.941B.036 GENERAL POWERS OF THE AUTHORITY.
1.10For the purpose of exercising the specific powers granted in section41B.04 and
1.11effectuating the other purposes of sections41B.01 to
41B.23 the authority has the general
1.12powers granted in this section.
1.13(a) It may sue and be sued.
1.14(b) It may have a seal and alter the seal.
1.15(c) It may make, and from time to time, amend and repeal rules consistent with
1.16sections41B.01 to
41B.23 .
1.17(d) It may acquire, hold, and dispose of real or personal property for its corporate
1.18purposes.
1.19(e) It may enter into agreements, contracts, or other transactions with any federal or
1.20state agency, any person and any domestic or foreign partnership, corporation, association,
1.21or organization, including contracts or agreements for administration and implementation
1.22of all or part of sections41B.01 to
41B.23 .
1.23(f) It may acquire real property, or an interest therein, in its own name, by purchase
1.24or foreclosure, where such acquisition is necessary or appropriate.
1.25(g) It may provide general technical services related to rural finance.
2.1(h) It may provide general consultative assistance services related to rural finance.
2.2(i) It may promote research and development in matters related to rural finance.
2.3(j) It may enter into agreements with lenders, borrowers, or the issuers of securities
2.4for the purpose of regulating the development and management of farms financed in whole
2.5or in part by the proceeds of qualified agricultural loans.
2.6(k) It may enter into agreements with other appropriate federal, state, or local
2.7governmental units to foster rural finance. It may give advance reservations of loan
2.8financing as part of the agreements, with the understanding that the authority will only
2.9approve the loans pursuant to normal procedures, and may adopt special procedures
2.10designed to meet problems inherent in such programs.
2.11(l) It may undertake and carry out studies and analyses of rural financing needs
2.12within the state and ways of meeting such needs including: data with respect to
2.13geographical distribution; farm size; the distribution of farm credit needs according to
2.14debt ratios and similar factors; the amount and quality of available financing and its
2.15distribution according to factors affecting rural financing needs and the meeting thereof;
2.16and may make the results of such studies and analyses available to the public and may
2.17engage in research and disseminate information on rural finance.
2.18(m) It may survey and investigate the rural financing needs throughout the state and
2.19make recommendations to the governor and the legislature as to legislation and other
2.20measures necessary or advisable to alleviate any existing shortage in the state.
2.21(n) It may establish cooperative relationships with such county and multicounty
2.22authorities as may be established and may develop priorities for the utilization of authority
2.23resources and assistance within a region in cooperation with county and multicounty
2.24authorities.
2.25(o) It may contract with, use, or employ any federal, state, regional, or local public
2.26or private agency or organization, legal counsel, financial advisors, investment bankers or
2.27others, upon terms it deems necessary or desirable, to assist in the exercise of any of the
2.28powers granted in sections41B.01 to
41B.23 and to carry out the objectives of sections
2.2941B.01
to
41B.23 and may pay for the services from authority funds.
2.30(p) It may establish cooperative relationships with counties to develop priorities for
2.31the use of authority resources and assistance within counties and to consider county plans
2.32and programs in the process of setting the priorities.
2.33(q) It may delegate any of its powers to its officers or staff.
2.34(r) It may enter into agreements with qualified agricultural lenders or others insuring
2.35or guaranteeing to the state the payment of all or a portion of qualified agricultural loans.
3.1(s) It may enter into agreements with eligible agricultural lenders providing for
3.2advance reservations of purchases of participation interests in restructuring loans, if
3.3the agreements provide that the authority may only purchase participation interests
3.4in restructuring loans under the normal procedure. The authority may provide in an
3.5agreement for special procedures or requirements designed to meet specific conditions or
3.6requirements.
3.7(t) It may allow farmers who are natural persons to combine programs of the federal
3.8Agriculture Credit Act of 1987 with programs of the Rural Finance Authority.
3.9(u) From within available funds generated by program fees, it may provide partial
3.10or full tuition assistance for farm management programs required under section41B.03,
3.11subdivision 3 , clause (7).
3.12(v) It may accept for and on behalf of the state any gift, bequest, devise, grant, or
3.13interest in money or personal property of any kind tendered to the state for any purpose
3.14pertaining to the activities of the authority.
3.15 Sec. 2. Minnesota Statutes 2010, section 41B.048, subdivision 6, is amended to read:
3.16 Subd. 6. Loans. (a) The authority may disburse loans through a fiscal agent to
3.17farmers and agricultural landowners who are eligible under subdivision 5. The total
3.18accumulative loan principal must not exceed $75,000 per loan.
3.19(b) The fiscal agent may impose a loan origination fee in the amount of one percent
3.20of the total approved loan. This fee is to be paid by the borrower to the fiscal agent at
3.21the time of loan closing.
3.22(c) The loan may be disbursed over a period not to exceed 12 years.
3.23(d) A borrower may receive loans, depending on the availability of funds, for planted
3.24areas up to 160 acres for up to:
3.25(1) the total amount necessary for establishment of the crop;
3.26(2) the total amount of maintenance costs, including weed control, during the first
3.27three years; and
3.28(3) 70 percent of the estimated value of one year's growth of the crop for years
3.29four through 12.
3.30(e) Security for the loan must be the crop, a personal note executed by the borrower,
3.31an interest in the land upon which the crop is growing, and whatever other security is
3.32required by the fiscal agent or the authority. All recording fees must be paid by the
3.33borrower.
3.34(f) The authority may prescribe forms and establish an application process for
3.35applicants to apply for a loan.
4.1(g) The authority may impose a reasonable, nonrefundable application fee for each
4.2application for a loan under this program. The application fee is initially $50. Application
4.3fees received by the authority must be deposited in theagroforestry loan program revolving
4.4fund established in subdivision 7 revolving loan account established under section 41B.06.
4.5(h) Loans under the program must be made using money in theagroforestry loan
4.6program revolving fund established in subdivision 7 revolving loan account established
4.7under section 41B.06.
4.8(i) All repayments of financial assistance granted under this section, including
4.9principal and interest, must be deposited into the revolving loan account established
4.10under section 41B.06.
4.11(i) (j) The interest payable on loans made by the authority for the agroforestry
4.12loan program must, if funded by revenue bond proceeds, be at a rate not less than the
4.13rate on the revenue bonds, and may be established at a higher rate necessary to pay
4.14costs associated with the issuance of the revenue bonds and a proportionate share of the
4.15cost of administering the program. The interest payable on loans for the agroforestry
4.16loan program funded from sources other than revenue bond proceeds must be at a rate
4.17determined by the authority.
4.18(j) (k) Loan principal balance outstanding plus all assessed interest must be repaid
4.19within 120 days of harvest, but no later than 15 years from planting.
4.20 Sec. 3. Minnesota Statutes 2010, section 41B.055, subdivision 1, is amended to read:
4.21 Subdivision 1. Establishment. The authority must establish and implement a
4.22livestock equipmentpilot loan program to help finance the purchase of livestock-related
4.23equipment and make livestock facilities improvements.
4.24 Sec. 4. [41B.056] IMMIGRANT AND MINORITY PILOT MICROLOAN
4.25PROGRAM.
4.26 Subdivision 1. Establishment. The authority shall establish and implement an
4.27immigrant and minority pilot microloan program to help finance the production of
4.28specialty crops or eligible livestock. The authority may contract with an intermediary to
4.29provide an efficient delivery system for this program.
4.30 Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
4.31(b) "Intermediary" means any lending institution or other organization of a for-profit
4.32or nonprofit nature that is in good standing with the state of Minnesota that has the
4.33appropriate business structure and trained personnel suitable to providing efficient
4.34disbursement of loan funds and the servicing and collection of loans.
5.1(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials,
5.2and other horticultural products, that are intensively cultivated.
5.3(d) "Eligible livestock" means poultry that has been allowed access to the outside,
5.4sheep, or goats.
5.5 Subd. 3. Eligibility. To be eligible for this program a borrower must:
5.6(1) be a legal resident of Minnesota;
5.7(2) either:
5.8(i) be a member of a protected group as defined in section 43A.02, subdivision 33; or
5.9(ii) be a qualified noncitizen as defined in section 256B.06, subdivision 4, paragraph
5.10(b);
5.11(3) be or plan to become a grower of specialty crops or eligible livestock;
5.12(4) market or contract to market the specialty crops or eligible livestock; and
5.13(5) demonstrate an ability to repay the loan.
5.14 Subd. 4. Loans. (a) The authority may disburse loans through an intermediary
5.15to farmers who are eligible under subdivision 3. The total accumulative loan principal
5.16must not exceed $10,000 per loan.
5.17(b) Refinancing an existing debt is not an eligible purpose.
5.18(c) The loan may be disbursed over a period not to exceed six years.
5.19(d) A borrower may receive loans, depending on the availability of funds, up to 70
5.20percent of the estimated value of the crop or livestock.
5.21(e) Security for the loan must be a personal note executed by the borrower and any
5.22other security required by the intermediary or the authority.
5.23(f) The authority may prescribe forms and establish an application process for
5.24applicants to apply for a loan.
5.25(g) The interest payable on loans for the immigrant and minority pilot microloan
5.26program must be at a rate determined by the authority.
5.27(h) Loans under this program will be made using money in the revolving loan
5.28account established under section 41B.06.
5.29(i) Repayments of financial assistance under this section, including principal and
5.30interest, must be deposited into the revolving loan account established under section
5.3141B.06.
5.32 Sec. 5. Minnesota Statutes 2010, section 41B.06, is amended to read:
5.3341B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.
5.34 There is established in the rural finance administration fund a Rural Finance
5.35Authority revolving loan account that is eligible to receive appropriations and the transfer
6.1of loan funds from other programs. All repayments of financial assistance granted from
6.2this account, including principal and interest, must be deposited into this account. Interest
6.3earned on money in the account accrues to the account, and the money in the account
6.4is appropriated to the commissioner of agriculture for purposes of the Rural Finance
6.5Authority livestock equipment, methane digester, disaster recovery,and value-added
6.6agricultural product, agroforestry, and immigrant and minority loan programs, including
6.7costs incurred by the authority to establish and administer the programs.
6.8 Sec. 6. BALANCE TRANSFER.
6.9The balance in the agroforestry loan program revolving fund established under
6.10Minnesota Statutes, section 41B.048, is transferred to the revolving loan account
6.11established under Minnesota Statutes, section 41B.06, and the agroforestry loan program
6.12revolving fund is abolished.
6.13 Sec. 7. REPEALER.
6.14Minnesota Statutes 2010, section 41B.048, subdivision 7, is repealed.
1.3program; modifying provisions related to the Rural Finance Authority;amending
1.4Minnesota Statutes 2010, sections 41B.036; 41B.048, subdivision 6; 41B.055,
1.5subdivision 1; 41B.06; proposing coding for new law in Minnesota Statutes,
1.6chapter 41B; repealing Minnesota Statutes 2010, section 41B.048, subdivision 7.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 41B.036, is amended to read:
1.941B.036 GENERAL POWERS OF THE AUTHORITY.
1.10For the purpose of exercising the specific powers granted in section
1.11effectuating the other purposes of sections
1.12powers granted in this section.
1.13(a) It may sue and be sued.
1.14(b) It may have a seal and alter the seal.
1.15(c) It may make, and from time to time, amend and repeal rules consistent with
1.16sections
1.17(d) It may acquire, hold, and dispose of real or personal property for its corporate
1.18purposes.
1.19(e) It may enter into agreements, contracts, or other transactions with any federal or
1.20state agency, any person and any domestic or foreign partnership, corporation, association,
1.21or organization, including contracts or agreements for administration and implementation
1.22of all or part of sections
1.23(f) It may acquire real property, or an interest therein, in its own name, by purchase
1.24or foreclosure, where such acquisition is necessary or appropriate.
1.25(g) It may provide general technical services related to rural finance.
2.1(h) It may provide general consultative assistance services related to rural finance.
2.2(i) It may promote research and development in matters related to rural finance.
2.3(j) It may enter into agreements with lenders, borrowers, or the issuers of securities
2.4for the purpose of regulating the development and management of farms financed in whole
2.5or in part by the proceeds of qualified agricultural loans.
2.6(k) It may enter into agreements with other appropriate federal, state, or local
2.7governmental units to foster rural finance. It may give advance reservations of loan
2.8financing as part of the agreements, with the understanding that the authority will only
2.9approve the loans pursuant to normal procedures, and may adopt special procedures
2.10designed to meet problems inherent in such programs.
2.11(l) It may undertake and carry out studies and analyses of rural financing needs
2.12within the state and ways of meeting such needs including: data with respect to
2.13geographical distribution; farm size; the distribution of farm credit needs according to
2.14debt ratios and similar factors; the amount and quality of available financing and its
2.15distribution according to factors affecting rural financing needs and the meeting thereof;
2.16and may make the results of such studies and analyses available to the public and may
2.17engage in research and disseminate information on rural finance.
2.18(m) It may survey and investigate the rural financing needs throughout the state and
2.19make recommendations to the governor and the legislature as to legislation and other
2.20measures necessary or advisable to alleviate any existing shortage in the state.
2.21(n) It may establish cooperative relationships with such county and multicounty
2.22authorities as may be established and may develop priorities for the utilization of authority
2.23resources and assistance within a region in cooperation with county and multicounty
2.24authorities.
2.25(o) It may contract with, use, or employ any federal, state, regional, or local public
2.26or private agency or organization, legal counsel, financial advisors, investment bankers or
2.27others, upon terms it deems necessary or desirable, to assist in the exercise of any of the
2.28powers granted in sections
2.30(p) It may establish cooperative relationships with counties to develop priorities for
2.31the use of authority resources and assistance within counties and to consider county plans
2.32and programs in the process of setting the priorities.
2.33(q) It may delegate any of its powers to its officers or staff.
2.34(r) It may enter into agreements with qualified agricultural lenders or others insuring
2.35or guaranteeing to the state the payment of all or a portion of qualified agricultural loans.
3.1(s) It may enter into agreements with eligible agricultural lenders providing for
3.2advance reservations of purchases of participation interests in restructuring loans, if
3.3the agreements provide that the authority may only purchase participation interests
3.4in restructuring loans under the normal procedure. The authority may provide in an
3.5agreement for special procedures or requirements designed to meet specific conditions or
3.6requirements.
3.7(t) It may allow farmers who are natural persons to combine programs of the federal
3.8Agriculture Credit Act of 1987 with programs of the Rural Finance Authority.
3.9(u) From within available funds generated by program fees, it may provide partial
3.10or full tuition assistance for farm management programs required under section
3.11subdivision 3
3.12(v) It may accept for and on behalf of the state any gift, bequest, devise, grant, or
3.13interest in money or personal property of any kind tendered to the state for any purpose
3.14pertaining to the activities of the authority.
3.15 Sec. 2. Minnesota Statutes 2010, section 41B.048, subdivision 6, is amended to read:
3.16 Subd. 6. Loans. (a) The authority may disburse loans through a fiscal agent to
3.17farmers and agricultural landowners who are eligible under subdivision 5. The total
3.18accumulative loan principal must not exceed $75,000 per loan.
3.19(b) The fiscal agent may impose a loan origination fee in the amount of one percent
3.20of the total approved loan. This fee is to be paid by the borrower to the fiscal agent at
3.21the time of loan closing.
3.22(c) The loan may be disbursed over a period not to exceed 12 years.
3.23(d) A borrower may receive loans, depending on the availability of funds, for planted
3.24areas up to 160 acres for up to:
3.25(1) the total amount necessary for establishment of the crop;
3.26(2) the total amount of maintenance costs, including weed control, during the first
3.27three years; and
3.28(3) 70 percent of the estimated value of one year's growth of the crop for years
3.29four through 12.
3.30(e) Security for the loan must be the crop, a personal note executed by the borrower,
3.31an interest in the land upon which the crop is growing, and whatever other security is
3.32required by the fiscal agent or the authority. All recording fees must be paid by the
3.33borrower.
3.34(f) The authority may prescribe forms and establish an application process for
3.35applicants to apply for a loan.
4.1(g) The authority may impose a reasonable, nonrefundable application fee for each
4.2application for a loan under this program. The application fee is initially $50. Application
4.3fees received by the authority must be deposited in the
4.4
4.5(h) Loans under the program must be made using money in the
4.6
4.7under section 41B.06.
4.8(i) All repayments of financial assistance granted under this section, including
4.9principal and interest, must be deposited into the revolving loan account established
4.10under section 41B.06.
4.11
4.12loan program must, if funded by revenue bond proceeds, be at a rate not less than the
4.13rate on the revenue bonds, and may be established at a higher rate necessary to pay
4.14costs associated with the issuance of the revenue bonds and a proportionate share of the
4.15cost of administering the program. The interest payable on loans for the agroforestry
4.16loan program funded from sources other than revenue bond proceeds must be at a rate
4.17determined by the authority.
4.18
4.19within 120 days of harvest, but no later than 15 years from planting.
4.20 Sec. 3. Minnesota Statutes 2010, section 41B.055, subdivision 1, is amended to read:
4.21 Subdivision 1. Establishment. The authority must establish and implement a
4.22livestock equipment
4.23equipment and make livestock facilities improvements.
4.24 Sec. 4. [41B.056] IMMIGRANT AND MINORITY PILOT MICROLOAN
4.25PROGRAM.
4.26 Subdivision 1. Establishment. The authority shall establish and implement an
4.27immigrant and minority pilot microloan program to help finance the production of
4.28specialty crops or eligible livestock. The authority may contract with an intermediary to
4.29provide an efficient delivery system for this program.
4.30 Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
4.31(b) "Intermediary" means any lending institution or other organization of a for-profit
4.32or nonprofit nature that is in good standing with the state of Minnesota that has the
4.33appropriate business structure and trained personnel suitable to providing efficient
4.34disbursement of loan funds and the servicing and collection of loans.
5.1(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials,
5.2and other horticultural products, that are intensively cultivated.
5.3(d) "Eligible livestock" means poultry that has been allowed access to the outside,
5.4sheep, or goats.
5.5 Subd. 3. Eligibility. To be eligible for this program a borrower must:
5.6(1) be a legal resident of Minnesota;
5.7(2) either:
5.8(i) be a member of a protected group as defined in section 43A.02, subdivision 33; or
5.9(ii) be a qualified noncitizen as defined in section 256B.06, subdivision 4, paragraph
5.10(b);
5.11(3) be or plan to become a grower of specialty crops or eligible livestock;
5.12(4) market or contract to market the specialty crops or eligible livestock; and
5.13(5) demonstrate an ability to repay the loan.
5.14 Subd. 4. Loans. (a) The authority may disburse loans through an intermediary
5.15to farmers who are eligible under subdivision 3. The total accumulative loan principal
5.16must not exceed $10,000 per loan.
5.17(b) Refinancing an existing debt is not an eligible purpose.
5.18(c) The loan may be disbursed over a period not to exceed six years.
5.19(d) A borrower may receive loans, depending on the availability of funds, up to 70
5.20percent of the estimated value of the crop or livestock.
5.21(e) Security for the loan must be a personal note executed by the borrower and any
5.22other security required by the intermediary or the authority.
5.23(f) The authority may prescribe forms and establish an application process for
5.24applicants to apply for a loan.
5.25(g) The interest payable on loans for the immigrant and minority pilot microloan
5.26program must be at a rate determined by the authority.
5.27(h) Loans under this program will be made using money in the revolving loan
5.28account established under section 41B.06.
5.29(i) Repayments of financial assistance under this section, including principal and
5.30interest, must be deposited into the revolving loan account established under section
5.3141B.06.
5.32 Sec. 5. Minnesota Statutes 2010, section 41B.06, is amended to read:
5.3341B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.
5.34 There is established in the rural finance administration fund a Rural Finance
5.35Authority revolving loan account that is eligible to receive appropriations and the transfer
6.1of loan funds from other programs. All repayments of financial assistance granted from
6.2this account, including principal and interest, must be deposited into this account. Interest
6.3earned on money in the account accrues to the account, and the money in the account
6.4is appropriated to the commissioner of agriculture for purposes of the Rural Finance
6.5Authority livestock equipment, methane digester, disaster recovery,
6.6agricultural product, agroforestry, and immigrant and minority loan programs, including
6.7costs incurred by the authority to establish and administer the programs.
6.8 Sec. 6. BALANCE TRANSFER.
6.9The balance in the agroforestry loan program revolving fund established under
6.10Minnesota Statutes, section 41B.048, is transferred to the revolving loan account
6.11established under Minnesota Statutes, section 41B.06, and the agroforestry loan program
6.12revolving fund is abolished.
6.13 Sec. 7. REPEALER.
6.14Minnesota Statutes 2010, section 41B.048, subdivision 7, is repealed.
