1.1.................... moves to amend H.F. No. 3438, the delete everything amendment
1.2(H3438DE1), as follows:
1.3Page 4, after line 20, insert:
1.4"$200,000 in 2010 and $200,000 in 2011
1.5are reductions from the appropriation due
1.6to elimination of one or more executive
1.7appointees in the commissioner's office."
1.8Page 4, line 24, delete "$405,000" and insert "$205,000"
1.9Page 4, line 28, delete "$629,000" and insert "$429,000"
1.10Page 5, after line 3, insert:
1.11"The dedicated fund transfers provided under
1.12this subdivision must be repaid by a future
1.13general fund appropriation for bioenergy
1.14and value-added agriculture after all ethanol
1.15producer and deficiency payment obligations
1.16are satisfied and before bioenergy and
1.17value-added agriculture appropriations may
1.18be spent for other purposes including the
1.19agricultural growth, research, and innovation
1.20program under Minnesota Statutes, section
1.22Page 5, after line 8, insert:

1.23    "Sec. 5. Minnesota Statutes 2009 Supplement, section 41A.09, subdivision 3a, is
1.24amended to read:
1.25    Subd. 3a. Ethanol producer payments. (a) The commissioner shall make cash
1.26payments to producers of ethanol located in the state that have begun production at a
2.1specific location by June 30, 2000. For the purpose of this subdivision, an entity that holds
2.2a controlling interest in more than one ethanol plant is considered a single producer.
2.3The amount of the payment for each producer's annual production, except as provided
2.4in paragraph (c), is 20 cents per gallon for each gallon of ethanol produced at a specific
2.5location on or before June 30, 2000, or ten years after the start of production, whichever is
2.6later. Annually, within 90 days of the end of its fiscal year, an ethanol producer receiving
2.7payments under this subdivision must file a disclosure statement on a form provided by
2.8the commissioner. The initial disclosure statement must include a summary description
2.9of the organization of the business structure of the claimant, a listing of the percentages
2.10of ownership by any person or other entity with an ownership interest of five percent or
2.11greater, and a copy of its annual audited financial statements, including the auditor's report
2.12and footnotes. The disclosure statement must include information demonstrating what
2.13percentage of the entity receiving payments under this section is owned by farmers or
2.14other entities eligible to farm or own agricultural land in Minnesota under the provisions
2.15of section 500.24. Subsequent annual reports must affirm that majority ownership of the
2.16entity is held by farmers or other entities eligible to farm or own agricultural land under
2.17section 500.24 or individuals residing within 30 miles of the plant. The report need not
2.18disclose the identity of the persons or entities eligible to farm or own agricultural land
2.19with ownership interests, individuals residing within 30 miles of the plant, or of any
2.20other entity with less than ten percent ownership interest, but the claimant must retain
2.21information within its files confirming the accuracy of the data provided. This data
2.22must be made available to the commissioner upon request. Not later than the 15th day
2.23of February in each year the commissioner shall deliver to the chairs of the standing
2.24committees of the senate and the house of representatives that deal with agricultural
2.25policy and agricultural finance issues an annual report summarizing aggregated data from
2.26plants receiving payments under this section during the preceding calendar year. Audited
2.27financial statements and notes and disclosure statements submitted to the commissioner
2.28are nonpublic data under section 13.02, subdivision 9. Notwithstanding the provisions of
2.29chapter 13 relating to nonpublic data, summaries of the submitted audited financial reports
2.30and notes and disclosure statements will be contained in the report to the committee chairs
2.31and will be public data.
2.32    (b) No payments shall be made for ethanol production that occurs after June 30,
2.332010. A producer of ethanol shall not transfer the producer's eligibility for payments
2.34under this section to an ethanol plant at a different location.
2.35    (c) If the level of production at an ethanol plant increases due to an increase in the
2.36production capacity of the plant, the payment under paragraph (a) applies to the additional
3.1increment of production until ten years after the increased production began. Once a
3.2plant's production capacity reaches 15,000,000 gallons per year, no additional increment
3.3will qualify for the payment.
3.4    (d) Total payments under paragraphs (a) and (c) to a producer in a fiscal year may
3.5not exceed $3,000,000.
3.6    (e) By the last day of October, January, April, and July, each producer shall file a
3.7claim for payment for ethanol production during the preceding three calendar months.
3.8A producer that files a claim under this subdivision shall include a statement of the
3.9producer's total ethanol production in Minnesota during the quarter covered by the claim.
3.10For each claim and statement of total ethanol production filed under this subdivision,
3.11the volume of ethanol production must be examined by an independent certified public
3.12accountant in accordance with standards established by the American Institute of Certified
3.13Public Accountants.
3.14    (f) Payments shall be made November 15, February 15, May 15, and August 15. A
3.15separate payment shall be made for each claim filed. Except as provided in paragraph (g),
3.16the total quarterly payment to a producer under this paragraph may not exceed $750,000.
3.17    (g) Notwithstanding the quarterly payment limits of paragraph (f), the commissioner
3.18shall make an additional payment in the fourth quarter of each fiscal year to ethanol
3.19producers for the lesser of: (1) 20 cents per gallon of production in the fourth quarter of the
3.20year that is greater than 3,750,000 gallons; or (2) the total amount of payments lost during
3.21the first three quarters of the fiscal year due to plant outages, repair, or major maintenance.
3.22Total payments to an ethanol producer in a fiscal year, including any payment under this
3.23paragraph, must not exceed the total amount the producer is eligible to receive based on
3.24the producer's approved production capacity. The provisions of this paragraph apply only
3.25to production losses that occur in quarters beginning after December 31, 1999.
3.26    (h) The commissioner shall reimburse ethanol producers for any deficiency in
3.27payments during earlier quarters if the deficiency occurred because of unallotment or
3.28because appropriated money was insufficient to make timely payments in the full amount
3.29provided in paragraph (a). Notwithstanding the quarterly or annual payment limitations in
3.30this subdivision, the commissioner shall begin making payments for earlier deficiencies
3.31in each fiscal year that appropriations for ethanol payments exceed the amount required
3.32to make eligible scheduled payments. Payments for earlier deficiencies must continue
3.33until the deficiencies for each producer are paid in full, except the commissioner shall not
3.34make a deficiency payment to an entity that no longer produces ethanol on a commercial
3.35scale at the location for which the entity qualified for producer payments or to an assignee
3.36of the entity, or an entity that is not majority owned by farmers or other entities eligible
4.1to farm or own agricultural land under section 500.24 or individuals residing within 30
4.2miles of the plant.
4.3    (i) Except as provided in article 1, section 2, subdivision 6, the commissioner may
4.4provide financial assistance under the agricultural growth, research, and innovation
4.5program in section 41A.12 with any amount of the annual appropriation for ethanol
4.6producer payments that is in excess of the amount required to make scheduled ethanol
4.7producer payments and deficiency payments under paragraphs (a) to (h)."
4.8Adjust amounts accordingly
4.9Renumber the sections in sequence and correct the internal references
4.10Amend the title accordingly