Purpose

• This bill modifies how money in the grain indemnity account can be used and when it can be transferred. It amends Minnesota Statutes 2024, section 223.24, subdivision 2, to clarify funding, spending, and transfer rules for the grain indemnity account.

Main provisions

• a) Money in the grain indemnity account, including interest, is appropriated to the commissioner to pay valid claims and to administer this section.

• b) The commissioner may direct payments from the grain indemnity account only for the following purposes: 1) paying valid claims, 2) paying grain indemnity premium refunds, 3) paying administrative expenses under paragraph c, 4) paying legal fees and legal expenses under subdivision 7 or, 5) paying a trustee appointed under subdivision 6.

• c) The commissioner must allocate money from the grain indemnity account to a separate administrative expenses account to pay or reimburse the agency for grain indemnity account expenses. Administrative expenses include the costs of processing payments and refunds, enforcement, record keeping, ordinary management and investment fees related to the grain indemnity account, and legal expenses.

• d) Money from the grain indemnity account must not be transferred unless the account balance is greater than $15,000,000.

Impact and significance

• Clarifies and limits how money from the grain indemnity account can be used, tying funds to specific purposes (claims, refunds, admin and legal costs, and trustees).
• Creates a separate administrative expenses account for related costs.
• Introduces a balance threshold (more than $15 million) that must be met before transfers can occur, which could slow or prevent transfers during tight financial periods.
• This is a change to the existing law by detailing allowable uses and adding transfer restrictions.

Relationship to existing law

• It replaces or revises subdivision 2 of Minnesota Statutes 2024 section 223.24, defining appropriations, permissible payments, the administrative expenses account, and the transfer condition.

Potential effects to consider

• Officials must track and segregate administrative expenses separately.
• Agencies may need to adjust budgeting and cash flow planning to ensure the $15 million threshold is considered before transfers.

Relevant Terms grain indemnity account; Minnesota Statutes 2024; section 223.24; subdivision 2; valid claims; grain indemnity premium refunds; administrative expenses; administrative expenses account; processing payments; enforcement; record keeping; management and investment fees; legal fees; legal expenses; trustee; transfer; balance threshold; $15,000,000.