1.1                          A bill for an act 
  1.2             relating to agriculture; establishing an on-farm 
  1.3             biogas recovery facility loan program; proposing 
  1.4             coding for new law in Minnesota Statutes, chapter 41B. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [41B.049] [BIOGAS RECOVERY LOAN PROGRAM.] 
  1.7      Subdivision 1.  [ESTABLISHMENT.] The authority may 
  1.8   establish, adopt rules for, and implement a loan program to 
  1.9   finance on-farm biogas recovery facilities in the state. 
  1.10     Subd. 2.  [LOAN PARTICIPATION.] The authority may 
  1.11  participate in a biogas recovery loan with an eligible lender to 
  1.12  a livestock farmer who meets the requirements of section 41B.03, 
  1.13  subdivision 1, and who is actively engaged in a livestock 
  1.14  operation.  A prospective borrower must have an operation with 
  1.15  no more than 1,500 animal units. 
  1.16     Participation is limited to $350,000.  The interest rates 
  1.17  and repayment terms of the authority's participation interest 
  1.18  may be different from the interest rates and repayment terms of 
  1.19  the lender's retained portion of the loan.  
  1.20     Subd. 3.  [SPECIFICATIONS.] No loan may be made to 
  1.21  refinance an existing debt.  Each loan participation must be 
  1.22  secured by a mortgage on real property and such other security 
  1.23  as the authority may require. 
  1.24     Subd. 4.  [APPLICATION AND ORIGINATION FEE.] The authority 
  1.25  may impose a reasonable nonrefundable application fee for each 
  2.1   application for a loan participation and an origination fee for 
  2.2   each loan issued under the biogas recovery loan program.  The 
  2.3   origination fee initially shall be set at 1.5 percent and the 
  2.4   application fee at $50.  The authority may review the fees 
  2.5   annually and make adjustments as necessary.  The fees must be 
  2.6   deposited in the state treasury and credited to an account in 
  2.7   the special revenue fund.  Money in this account is appropriated 
  2.8   to the commissioner for administrative expenses of the biogas 
  2.9   recovery loan program. 
  2.10     Subd. 5.  [INTEREST RATE.] The interest rate per annum on 
  2.11  the biogas recovery loan participation must be at the rate of 
  2.12  interest determined by the authority to be necessary to provide 
  2.13  for the timely payment of principal and interest when due on 
  2.14  bonds or other obligations of the authority issued under this 
  2.15  chapter, to provide financing for loan participations made under 
  2.16  the biogas recovery loan program, and to provide for reasonable 
  2.17  and necessary costs of issuing, carrying, administering, and 
  2.18  securing the bonds or notes and to pay the costs incurred and to 
  2.19  be incurred by the authority in the implementation of the biogas 
  2.20  recovery loan program.