1.1 	A bill for an act
1.2 	relating to appropriations; appropriating money for agriculture and veterans 
1.3 	affairs; modifying disposition of certain revenue and funds; modifying certain 
1.4 	grant and loan requirements; modifying use of Minnesota grown label; 
1.5 	modifying and creating certain funds and accounts; eliminating the aquatic pest 
1.6 	control license; modifying permit and safeguard requirements; modifying and 
1.7 	establishing certain fees and surcharges; creating a food safety and defense task 
1.8 	force; requiring certain studies and reports; providing for NextGen energy; 
1.9 	changing certain provisions related to veterans;amending Minnesota Statutes 
1.10 	2006, sections 3.737, subdivision 1; 3.7371, subdivision 3; 17.03, subdivision 
1.11 	3; 17.101, subdivision 2; 17.102, subdivisions 1, 3, 4, by adding subdivisions; 
1.12 	17.117, subdivisions 1, 4, 5a, 5b, 11; 17.983, subdivision 1; 17B.03, by 
1.13 	adding a subdivision; 18B.065, subdivisions 1, 2a; 18B.26, subdivision 3; 
1.14 	18B.33, subdivision 1; 18B.34, subdivision 1; 18B.345; 18C.305, by adding a 
1.15 	subdivision; 18E.02, subdivision 5, by adding a subdivision; 18E.03, subdivision 
1.16 	4; 25.341, subdivision 1; 28A.04, subdivision 1; 28A.06; 28A.082, subdivision 1; 
1.17 	32.21, subdivision 4; 32.212; 32.394, subdivision 4; 32.415; 41B.03, subdivision 
1.18 	1; 41B.043, subdivisions 2, 3, 4; 41B.046, subdivision 4; 41B.047; 41B.055; 
1.19 	41B.06; 41C.05, subdivision 2; 116.0714; 156.001, by adding subdivisions; 
1.20 	156.12, subdivision 1; 197.75; 198.002, subdivision 2; 198.004, subdivision 1; 
1.21 	239.7911, subdivision 1; 343.10; proposing coding for new law in Minnesota 
1.22 	Statutes, chapters 18C; 28A; 35; 38; 41A; 192; 197; repealing Minnesota Statutes 
1.23 	2006, sections 17.109; 18B.315; 18C.425, subdivision 5; 32.213; 35.08; 35.09; 
1.24 	35.10; 35.11; 35.12; 41B.043, subdivision 1a; 156.075; Laws 2006, chapter 
1.25 	258, section 14, subdivision 6; Minnesota Rules, parts 1705.0840; 1705.0850; 
1.26 	1705.0860; 1705.0870; 1705.0880; 1705.0890; 1705.0900; 1705.0910; 
1.27 	1705.0920; 1705.0930; 1705.0940; 1705.0950; 1705.0960; 1705.0970; 
1.28 	1705.0980; 1705.0990; 1705.1000; 1705.1010; 1705.1020; 1705.1030; 
1.29 	1705.1040; 1705.1050; 1705.1060; 1705.1070; 1705.1080; 1705.1086; 
1.30 	1705.1087; 1705.1088.
1.31 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	AGRICULTURE AND VETERANS AFFAIRS
2.3 	APPROPRIATIONS

2.4	Section 1. SUMMARY OF APPROPRIATIONS.
 	
2.5 	The amounts shown in this section summarize direct appropriations, by fund, made 
2.6 	in this article.

2.7			2008
		2009
		Total
	
2.8	General
	$
	66,507,000
	$
	66,570,000
	$
	133,077,000
	
2.92.10
	State Government Special 
Revenue
		338,000
		338,000
		676,000
	
2.11	Remediation
		388,000
		388,000
		776,000
	
2.12	Total
	$
	67,233,000
	$
	67,296,000
	$
	134,529,000

2.13	Sec. 2. AGRICULTURE AND VETERANS AFFAIRS APPROPRIATIONS.
 	
2.14 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.15 	agencies and for the purposes specified in this article. The appropriations are from the 
2.16 	general fund, or another named fund, and are available for the fiscal years indicated 
2.17 	for each purpose. The figures "2008" and "2009" used in this article mean that the 
2.18 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
2.19 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
2.20 	year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 
2.21 	year ending June 30, 2007, are effective the day following final enactment.

2.22				APPROPRIATIONS
	
2.23				Available for the Year
	
2.24				Ending June 30
	
2.25					2008
		2009

2.26	Sec. 3. DEPARTMENT OF AGRICULTURE

2.27	Subdivision 1.Total Appropriation
 	$
	45,274,000
	$
	46,158,000

2.28	Appropriations by Fund
	
2.29		2008
	2009
	
2.30	General
	44,886,000
	45,770,000
	
2.31	Remediation
	388,000
	388,000
	
2.32 	The amounts that may be spent for each 
2.33 	purpose are specified in the following 
2.34 	subdivisions.

3.1	Subd. 2.Protection Services
 		14,527,000
		13,995,000

3.2	Appropriations by Fund
	
3.3	General
	14,139,000
	13,607,000
	
3.4	Remediation
	388,000
	388,000
	
3.5 	$388,000 the first year and $388,000 the 
3.6 	second year are from the remediation fund 
3.7 	for administrative funding for the voluntary 
3.8 	cleanup program.
3.9 	$600,000 the first year is for research, 
3.10 	evaluation, and effectiveness monitoring of 
3.11 	agricultural practices in restoring impaired 
3.12 	waters. The funding must not be used 
3.13 	to hire additional employees to perform 
3.14 	these activities. This appropriation remains 
3.15 	available until spent.
3.16 	$200,000 the first year and $200,000 the 
3.17 	second year are for clean water legacy 
3.18 	technical assistance in the development of 
3.19 	total maximum daily load (TMDL) plans.
3.20 	$263,000 the first year and $267,000 the 
3.21 	second year are for additional invasive 
3.22 	species control activities.
3.23 	$90,000 the first year and $92,000 the second 
3.24 	year are for additional meat inspection 
3.25 	activities.
3.26 	$346,000 the first year and $205,000 the 
3.27 	second year are for electronic inspection 
3.28 	system costs for dairy and food inspections.
3.29 	$120,000 the first year and $123,000 the 
3.30 	second year are for emergency planning 
3.31 	activities.
3.32 	$141,000 the first year and $143,000 the 
3.33 	second year are for livestock premise 
3.34 	identification activities that increase the 
4.1 	state's ability to respond to animal health 
4.2 	emergencies.
4.3 	$50,000 the first year is for export grain 
4.4 	inspections at the Port of Duluth. This is a 
4.5 	onetime appropriation.

4.6
4.7	Subd. 3.Agricultural Marketing and 
Development
 		7,712,000
		5,086,000
	
4.8 	$186,000 the first year and $186,000 the 
4.9 	second year are for transfer to the Minnesota 
4.10 	grown account and may be used as grants 
4.11 	for Minnesota grown promotion under 
4.12 	Minnesota Statutes, section 17.102. Grants 
4.13 	may be made for one year. Notwithstanding 
4.14 	Minnesota Statutes, section 16A.28, the 
4.15 	appropriations encumbered under contract on 
4.16 	or before June 30, 2009, for Minnesota grown 
4.17 	grants in this paragraph are available until 
4.18 	June 30, 2011. $50,000 of the appropriation 
4.19 	in each year is for efforts that identify 
4.20 	and promote Minnesota grown products 
4.21 	in retail food establishments including but 
4.22 	not limited to restaurants, grocery stores, 
4.23 	and convenience stores. The balance in the 
4.24 	Minnesota grown matching account in the 
4.25 	agricultural fund is canceled to the Minnesota 
4.26 	grown account in the agricultural fund and 
4.27 	the Minnesota grown matching account is 
4.28 	abolished.
4.29 	$160,000 the first year and $160,000 the 
4.30 	second year are for grants to farmers for 
4.31 	demonstration projects involving sustainable 
4.32 	agriculture as authorized in Minnesota 
4.33 	Statutes, section 17.116. Of the amount 
4.34 	for grants, up to $20,000 may be used for 
4.35 	dissemination of information about the 
4.36 	demonstration projects. Notwithstanding 
5.1 	Minnesota Statutes, section 16A.28, the 
5.2 	appropriations encumbered under contract 
5.3 	on or before June 30, 2009, for sustainable 
5.4 	agriculture grants in this paragraph are 
5.5 	available until June 30, 2011.
5.6 	$100,000 the first year and $100,000 
5.7 	the second year are to provide training 
5.8 	and technical assistance to county and 
5.9 	town officials relating to livestock siting 
5.10 	issues and local zoning and land use 
5.11 	planning, including a checklist template that 
5.12 	would clarify the federal, state, and local 
5.13 	government requirements for consideration 
5.14 	of an animal agriculture modernization 
5.15 	or expansion project. In developing the 
5.16 	training and technical assistance program, 
5.17 	the commissioner may seek assistance from 
5.18 	the local planning assistance center of the 
5.19 	Department of Administration and shall seek 
5.20 	guidance, advice, and support of livestock 
5.21 	producer organizations, general agricultural 
5.22 	organizations, local government associations, 
5.23 	academic institutions, other government 
5.24 	agencies, and others with expertise in land 
5.25 	use and agriculture.
5.26 	$103,000 the first year and $106,000 the 
5.27 	second year are for additional integrated pest 
5.28 	management activities.
5.29 	$2,700,000 the first year is for the agricultural 
5.30 	best management practices loan program. At 
5.31 	least $2,160,000 is available for pass-through 
5.32 	to local governments and lenders for 
5.33 	low-interest loans.
5.34 	$100,000 the first year and $100,000 the 
5.35 	second year are for annual cost-share 
6.1 	payments to resident farmers or persons 
6.2 	who sell, process, or package agricultural 
6.3 	products in this state for the costs of 
6.4 	organic certification. Annual cost-share 
6.5 	payments per farmer must be three-fourths 
6.6 	of the cost of the certification or $500, 
6.7 	whichever is less. In any year that a resident 
6.8 	farmer or person who sells, processes, or 
6.9 	packages agricultural products in this state 
6.10 	receives a federal organic certification 
6.11 	cost-share payment, that resident farmer or 
6.12 	person is not eligible for state cost-share 
6.13 	payments. This appropriation is available 
6.14 	until expended. The commissioner may 
6.15 	allocate any excess appropriation in either 
6.16 	fiscal year for organic producer education 
6.17 	efforts, assistance for persons transitioning 
6.18 	from conventional to organic agriculture, or 
6.19 	sustainable agriculture demonstration grants 
6.20 	authorized under Minnesota Statutes, section 
6.21 	17.116, and pertaining to organic research 
6.22 	or demonstration.

6.23	Subd. 4.Bioenergy 
 		16,368,000
		19,568,000
	
6.24 	$15,168,000 the first year and $15,168,000 
6.25 	the second year are for ethanol producer 
6.26 	payments under Minnesota Statutes, section 
6.27 	41A.09. If the total amount for which 
6.28 	all producers are eligible in a quarter 
6.29 	exceeds the amount available for payments, 
6.30 	the commissioner shall make payments 
6.31 	on a pro rata basis. If the appropriation 
6.32 	exceeds the total amount for which all 
6.33 	producers are eligible in a fiscal year for 
6.34 	scheduled payments and for deficiencies 
6.35 	in payments during previous fiscal years, 
6.36 	the balance in the appropriation is available 
7.1 	to the commissioner for value-added 
7.2 	agricultural programs, including the product 
7.3 	processing and marketing grant program 
7.4 	under Minnesota Statutes, section 17.101, 
7.5 	subdivision 5. The appropriation remains 
7.6 	available until spent.
7.7 	$4,400,000 the second year is for grants to 
7.8 	bioenergy projects chosen by a majority vote 
7.9 	of the NextGen Energy Board. The board 
7.10 	shall award grants to owners of Minnesota 
7.11 	facilities producing bioenergy or certain 
7.12 	nongovernmental entities. For the purposes 
7.13 	of this paragraph, "bioenergy" includes 
7.14 	transportation fuels derived from cellulosic 
7.15 	material as well as the generation of energy 
7.16 	for commercial heat, industrial process heat, 
7.17 	or electrical power from cellulosic material 
7.18 	via gasification or other processes. The board 
7.19 	must give priority to a bioenergy facility that 
7.20 	is at least 60 percent owned and controlled 
7.21 	by farmers, as defined in Minnesota Statutes, 
7.22 	section 500.24, subdivision 2, paragraph 
7.23 	(n), or natural persons residing in the 
7.24 	county or counties contiguous to where the 
7.25 	facility is located. Grants are limited to 50 
7.26 	percent of the cost of research, technical 
7.27 	assistance, or equipment related to bioenergy 
7.28 	production or $500,000, whichever is less. 
7.29 	Grants to nongovernmental entities for the 
7.30 	development of business plans and structures 
7.31 	related to community ownership of eligible 
7.32 	bioenergy facilities together may not exceed 
7.33 	$150,000. The board shall make a good faith 
7.34 	effort to select projects that have merit and 
7.35 	when taken together represent a variety of 
7.36 	bioenergy technologies, biomass feedstocks, 
8.1 	and geographic regions of the state. Projects 
8.2 	must have a qualified engineer certification 
8.3 	on the technology and fuel source. Grantees 
8.4 	shall provide reports at the request of the 
8.5 	commissioner and must actively participate 
8.6 	in the Agricultural Utilization Research 
8.7 	Institute's bioenergy roundtable. No later 
8.8 	than February 1, 2009, the commissioner 
8.9 	shall report on the projects funded under 
8.10 	this appropriation to the house and senate 
8.11 	committees with jurisdiction over agriculture 
8.12 	finance. The commissioner's costs in 
8.13 	administering the program may be paid from 
8.14 	the appropriation.
8.15 	$200,000 the first year is for a grant to the 
8.16 	Minnesota Turf Seed Council for basic 
8.17 	and applied agronomic research on native 
8.18 	plants, including plant breeding, nutrient 
8.19 	management, pest management, disease 
8.20 	management, yield, and viability. The grant 
8.21 	recipient may subcontract with a qualified 
8.22 	third party for some or all of the basic 
8.23 	or applied research. The grant recipient 
8.24 	must actively participate in the Agricultural 
8.25 	Utilization Research Institute's bioenergy 
8.26 	roundtable and no later than February 1, 
8.27 	2009, must report to the house and senate 
8.28 	committees with jurisdiction over agriculture 
8.29 	finance. This is a onetime appropriation and 
8.30 	is available until spent.
8.31 	$200,000 the first year is for a grant to a joint 
8.32 	venture combined heat and power energy 
8.33 	facility located in Scott or LeSueur County 
8.34 	for the creation of a centrally located biomass 
8.35 	fuel supply depot with the capability of 
8.36 	unloading, processing, testing, scaling, and 
9.1 	storing renewable biomass fuels. The grant 
9.2 	must be matched on at least a three-to-one 
9.3 	basis with nonstate funds. The grant recipient 
9.4 	must actively participate in the Agricultural 
9.5 	Utilization Research Institute's bioenergy 
9.6 	roundtable and no later than February 1, 
9.7 	2009, must report to the house and senate 
9.8 	committees with jurisdiction over agriculture 
9.9 	finance. This is a onetime appropriation and 
9.10 	is available until spent.
9.11 	$200,000 the first year is for a grant to the 
9.12 	Bois Forte Band of Chippewa for a feasibility 
9.13 	study of a renewable energy biofuels 
9.14 	demonstration facility on the Bois Forte 
9.15 	Reservation in St. Louis and Koochiching 
9.16 	Counties. The grant shall be used by the Bois 
9.17 	Forte Band to conduct a detailed feasibility 
9.18 	study of the economic and technical viability 
9.19 	of developing a multistream renewable 
9.20 	energy biofuels demonstration facility 
9.21 	on Bois Forte Reservation land to utilize 
9.22 	existing forest resources, woody biomass, 
9.23 	and cellulosic material to produce biofuels or 
9.24 	bioenergy. The grant recipient must actively 
9.25 	participate in the Agricultural Utilization 
9.26 	Research Institute's bioenergy roundtable and 
9.27 	no later than February 1, 2009, must report 
9.28 	to the house and senate committees with 
9.29 	jurisdiction over agriculture finance. This is 
9.30 	a onetime appropriation and is available until 
9.31 	spent.
9.32 	$200,000 the first year is for a grant to 
9.33 	the White Earth Band of Chippewa for a 
9.34 	feasibility study of a renewable energy 
9.35 	biofuels production, research, and production 
9.36 	facility on the White Earth Reservation in 
10.1 	Mahnomen County. The grant must be used 
10.2 	by the White Earth Band and the University 
10.3 	of Minnesota to conduct a detailed feasibility 
10.4 	study of the economic and technical viability 
10.5 	of (1) developing a multistream renewable 
10.6 	energy biofuels demonstration facility on 
10.7 	White Earth Reservation land to utilize 
10.8 	existing forest resources, woody biomass, 
10.9 	and cellulosic material to produce biofuels or 
10.10 	bioenergy, and (2) developing, harvesting, 
10.11 	and marketing native prairie plants and seeds 
10.12 	for bioenergy production. The grant recipient 
10.13 	must actively participate in the Agricultural 
10.14 	Utilization Research Institute's bioenergy 
10.15 	roundtable and no later than February 1, 
10.16 	2009, must report to the house and senate 
10.17 	committees with jurisdiction over agriculture 
10.18 	finance. This is a onetime appropriation and 
10.19 	is available until spent.
10.20 	$200,000 the first year is for a grant to the Elk 
10.21 	River Economic Development Authority for 
10.22 	upfront engineering and a feasibility study 
10.23 	of the Elk River renewable fuels facility. 
10.24 	The facility must use a plasma gasification 
10.25 	process to convert primarily cellulosic 
10.26 	material, but may also use plastics and other 
10.27 	components from municipal solid waste, as 
10.28 	feedstock for the production of methanol 
10.29 	for use in biodiesel production facilities. 
10.30 	Any unencumbered balance in fiscal year 
10.31 	2008 does not cancel but is available for 
10.32 	fiscal year 2009. Notwithstanding Minnesota 
10.33 	Statutes, section 16A.285, the agency must 
10.34 	not transfer this appropriation. The grant 
10.35 	recipient must actively participate in the 
10.36 	Agricultural Utilization Research Institute's 
11.1 	bioenergy roundtable and no later than 
11.2 	February 1, 2009, must report to the house 
11.3 	and senate committees with jurisdiction 
11.4 	over agriculture finance. This is a onetime 
11.5 	appropriation and is available until spent.
11.6 	$200,000 the first year is for a grant to 
11.7 	Chisago County to conduct a detailed 
11.8 	feasibility study of the economic and 
11.9 	technical viability of developing a 
11.10 	multistream renewable energy biofuels 
11.11 	demonstration facility in Chisago, Isanti, 
11.12 	or Pine County to utilize existing forest 
11.13 	resources, woody biomass, and cellulosic 
11.14 	material to produce biofuels or bioenergy. 
11.15 	Chisago County may expend funds to Isanti 
11.16 	and Pine Counties and the University of 
11.17 	Minnesota for any costs incurred as part 
11.18 	of the study. The feasibility study must 
11.19 	consider the capacity of: (1) the seed bank 
11.20 	at Wild River State Park to expand the 
11.21 	existing prairie grass, woody biomass, and 
11.22 	cellulosic material resources in Chisago, 
11.23 	Isanti, and Pine Counties; (2) willing and 
11.24 	interested landowners in Chisago, Isanti, and 
11.25 	Pine Counties to grow cellulosic materials; 
11.26 	and (3) the Minnesota Conservation Corps, 
11.27 	the sentence to serve program, and other 
11.28 	existing workforce programs in east central 
11.29 	Minnesota to contribute labor to these 
11.30 	efforts. The grant recipient must actively 
11.31 	participate in the Agricultural Utilization 
11.32 	Research Institute's bioenergy roundtable and 
11.33 	no later than February 1, 2009, must report 
11.34 	to the house and senate committees with 
11.35 	jurisdiction over agriculture finance. This is 
12.1 	a onetime appropriation and is available until 
12.2 	spent.

12.3
12.4	Subd. 5.Administration and Financial 
Assistance
 		6,667,000
		7,509,000
	
12.5 	$1,005,000 the first year and $1,005,000 
12.6 	the second year are for continuation of 
12.7 	the dairy development and profitability 
12.8 	enhancement and dairy business planning 
12.9 	grant programs established under Laws 1997, 
12.10 	chapter 216, section 7, subdivision 2, and 
12.11 	Laws 2001, First Special Session chapter 2, 
12.12 	section 9, subdivision 2 . The commissioner 
12.13 	may allocate the available sums among 
12.14 	permissible activities, including efforts to 
12.15 	improve the quality of milk produced in the 
12.16 	state in the proportions that the commissioner 
12.17 	deems most beneficial to Minnesota's dairy 
12.18 	farmers. The commissioner must submit a 
12.19 	work plan detailing plans for expenditures 
12.20 	under this program to the chairs of the 
12.21 	house and senate committees dealing with 
12.22 	agricultural policy and budget on or before 
12.23 	the start of each fiscal year. If significant 
12.24 	changes are made to the plans in the course 
12.25 	of the year, the commissioner must notify the 
12.26 	chairs.
12.27 	$50,000 the first year and $50,000 the second 
12.28 	year are for grants to the Northern Crops 
12.29 	Institute. No later than February 1, 2009, 
12.30 	the grant recipient must report to the house 
12.31 	and senate committees with jurisdiction over 
12.32 	agriculture finance. The appropriation may 
12.33 	be spent to purchase equipment.
12.34 	$19,000 the first year and $19,000 the second 
12.35 	year are for grants to the Minnesota Livestock 
12.36 	Breeders Association. No later than February 
13.1 	1, 2009, the grant recipient must report 
13.2 	to the house and senate committees with 
13.3 	jurisdiction over agriculture finance.
13.4 	$250,000 the first year and $250,000 the 
13.5 	second year are for grants to the Minnesota 
13.6 	Agricultural Education Leadership Council 
13.7 	for programs of the council under Minnesota 
13.8 	Statutes, chapter 41D. No later than February 
13.9 	1, 2009, the grant recipient must report 
13.10 	to the house and senate committees with 
13.11 	jurisdiction over agriculture finance. 
13.12 	$800,000 the second year is for grants 
13.13 	for fertilizer research as awarded by the 
13.14 	Minnesota Agricultural Fertilizer Research 
13.15 	and Education Council under Minnesota 
13.16 	Statutes, section 18C.71. No later than 
13.17 	February 1, 2009, the commissioner shall 
13.18 	report to the house and senate committees 
13.19 	with jurisdiction over agriculture finance. 
13.20 	The report must include the progress and 
13.21 	outcome of funded projects as well as the 
13.22 	sentiment of the council concerning the need 
13.23 	for additional research funded through an 
13.24 	industry checkoff fee. 
13.25 	$466,000 the first year and $466,000 
13.26 	the second year are for aid payments to 
13.27 	county and district agricultural societies 
13.28 	and associations under Minnesota Statutes, 
13.29 	section 38.02, subdivision 1, and shall be 
13.30 	disbursed not later than July 15. These 
13.31 	payments are the amount of aid owed by the 
13.32 	state for an annual fair held in the previous 
13.33 	calendar year.
13.34 	$65,000 the first year and $65,000 the second 
13.35 	year are for annual grants to the Northern 
14.1 	Minnesota Forage-Turf Seed Advisory 
14.2 	Committee for basic and applied research on 
14.3 	the improved production of forage and turf 
14.4 	seed related to new and improved varieties. 
14.5 	The grant recipient may subcontract with a 
14.6 	qualified third party for some or all of the 
14.7 	basic and applied research. No later than 
14.8 	February 1, 2009, the grant recipient must 
14.9 	report to the house and senate committees 
14.10 	with jurisdiction over agriculture finance.
14.11 	$500,000 the first year and $500,000 the 
14.12 	second year are for grants to Second Harvest 
14.13 	Heartland on behalf of Minnesota's six 
14.14 	Second Harvest food banks for the purchase 
14.15 	of milk for distribution to Minnesota's food 
14.16 	shelves and other charitable organizations 
14.17 	that are eligible to receive food from the food 
14.18 	banks. Milk purchased under the grants must 
14.19 	be acquired from Minnesota milk processors 
14.20 	and based on low-cost bids. The milk must be 
14.21 	allocated to each Second Harvest food bank 
14.22 	serving Minnesota according to the formula 
14.23 	used in the distribution of United States 
14.24 	Department of Agriculture commodities 
14.25 	under the Emergency Food Assistance 
14.26 	Program (TEFAP). Second Harvest 
14.27 	Heartland must submit quarterly reports to 
14.28 	the commissioner on forms prescribed by 
14.29 	the commissioner. The reports must include, 
14.30 	but are not limited to, information on the 
14.31 	expenditure of funds, the amount of milk 
14.32 	purchased, and the organizations to which 
14.33 	the milk was distributed. No later than 
14.34 	February 1, 2009, the commissioner must 
14.35 	report to the house and senate committees 
14.36 	with jurisdiction over agriculture finance. 
15.1 	Second Harvest Heartland may enter into 
15.2 	contracts or agreements with food banks 
15.3 	for shared funding or reimbursement of the 
15.4 	direct purchase of milk. Each food bank 
15.5 	receiving money from this appropriation 
15.6 	may use up to two percent of the grant for 
15.7 	administrative expenses.
15.8 	$100,000 the first year and $100,000 the 
15.9 	second year are for transfer to the Board of 
15.10 	Trustees of the Minnesota State Colleges and 
15.11 	Universities for mental health counseling 
15.12 	support to farm families and business 
15.13 	operators through farm business management 
15.14 	programs at Central Lakes College and 
15.15 	Ridgewater College. No later than February 
15.16 	1, 2009, the Board of Trustees must report 
15.17 	to the house and senate committees with 
15.18 	jurisdiction over agriculture finance. 
15.19 	$18,000 the first year and $18,000 the 
15.20 	second year are for grants to the Minnesota 
15.21 	Horticultural Society. No later than February 
15.22 	1, 2009, the grant recipient must report 
15.23 	to the house and senate committees with 
15.24 	jurisdiction over agriculture finance. 

15.25	Sec. 4. BOARD OF ANIMAL HEALTH
 	$
	3,512,000
	$
	3,456,000
	
15.26 	$408,000 the first year and $408,000 the 
15.27 	second year are for bovine tuberculosis 
15.28 	eradication and surveillance in cattle herds. 
15.29 	Of this amount, $159,000 is permanent.
15.30 	$100,000 the first year is for reimbursements 
15.31 	under Minnesota Statutes, section 35.085. 
15.32 	This appropriation is available until spent.

15.33
15.34	Sec. 5. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	4,000,000
	$
	4,000,000
	
16.1 	From the appropriation in both years, the 
16.2 	Agricultural Utilization Research Institute 
16.3 	must continue to monitor and coordinate 
16.4 	renewable energy efforts and opportunities 
16.5 	in the state via the bioenergy roundtable, 
16.6 	the Center for Producer-Owned Energy, 
16.7 	and related initiatives. In addition, as part 
16.8 	of the bioenergy roundtable, the institute 
16.9 	shall convene a Bioenergy Advisory 
16.10 	Committee consisting of, but not limited 
16.11 	to, representatives of the state's agriculture, 
16.12 	natural resources, forestry, and rural 
16.13 	economic development communities and 
16.14 	shall present this group's viewpoints as part 
16.15 	of the institute's participation in the NextGen 
16.16 	Energy Board created in Minnesota Statutes, 
16.17 	section 41A.10. 

16.18	Sec. 6. VETERANS AFFAIRS
 	$
	14,447,000
	$
	13,682,000

16.19	Appropriations by Fund
	
16.20		2008
	2009
	
16.21	General
	14,109,000
	13,344,000
	
16.22	Special Revenue
	338,000
	338,000
	
16.23 	(a) $1,000,000 each year is added to the base 
16.24 	for state soldier's assistance under Minnesota 
16.25 	Statutes, section 197.05.
16.26 	(b) $1,450,000 the first year and $950,000 
16.27 	the second year are added to the base for 
16.28 	grants to counties under the terms of this 
16.29 	section. The commissioner shall issue a 
16.30 	request for proposals for grants to enhance 
16.31 	the benefits, programs, and services provided 
16.32 	to veterans. The request must specify that 
16.33 	priority will be given to proposals that meet 
16.34 	the programmatic goals established by the 
16.35 	commissioner, including proposals that will:
17.1 	(1) provide the most effective outreach to 
17.2 	veterans;
17.3 	(2) reintegrate combat veterans into society;
17.4 	(3) collaborate with other social service 
17.5 	agencies, educational institutions, and other 
17.6 	relevant community resources;
17.7 	(4) reduce homelessness among veterans; 
17.8 	and
17.9 	(5) provide measurable outcomes.
17.10 	The commissioner may provide incentives 
17.11 	to encourage, and may give priority to 
17.12 	proposals that foster, regional collaboration 
17.13 	for service delivery. The grants may be for a 
17.14 	term of up to two years. The commissioner 
17.15 	shall ensure that grants are made throughout 
17.16 	all regions of the state and shall develop a 
17.17 	description of best practices for the use of 
17.18 	these grants. A county may not reduce its 
17.19 	county veterans service officer budget by any 
17.20 	amount received as a grant under this section. 
17.21 	Grants made under this section are in addition 
17.22 	to and not subject to the requirements for 
17.23 	grants made under Minnesota Statutes, 
17.24 	section 197.608. The Minnesota Association 
17.25 	of County Veterans Service Officers may 
17.26 	apply for grants under this section beginning 
17.27 	July 1, 2007. Any balance remaining after 
17.28 	the first year does not cancel and is available 
17.29 	in the second year. This appropriation must 
17.30 	be included in the appropriation base through 
17.31 	fiscal year 2011.
17.32 	(c) $2,000,000 each year is for outreach to 
17.33 	veterans. Of this amount, $750,000 each 
17.34 	year is for tribal veterans service offices; 
17.35 	$1,000,000 each year is for a grant to the 
18.1 	Minnesota Assistance Council for Veterans; 
18.2 	and $250,000 each year is for veterans 
18.3 	outreach programs.
18.4 	(d) $250,000 each year is added to the base 
18.5 	for grants to Disabled American Veterans, 
18.6 	Military Order of the Purple Heart, Veterans 
18.7 	of Foreign Wars, Vietnam Veterans of 
18.8 	America, and other congressionally chartered 
18.9 	veterans service organizations designated by 
18.10 	the commissioner.
18.11 	(e) $450,000 each year is for expansion of the 
18.12 	higher education veterans assistance program 
18.13 	established in Minnesota Statutes, section 
18.14 	197.585. This is a onetime appropriation.
18.15 	(f) $100,000 each year is for information 
18.16 	technology.
18.17 	(g) $75,000 each year is added to the base for 
18.18 	operations at the Minnesota State Veterans 
18.19 	Cemetery in Little Falls.
18.20 	(h) $500,000 each year is added to the base 
18.21 	for administration of veterans programming.
18.22 	(i) $63,000 the first year and $128,000 
18.23 	the second year are for compensation 
18.24 	adjustments for Department of Veterans 
18.25 	Affairs agency personnel.
18.26 	(j) $100,000 each year is for compensation 
18.27 	for honor guards at the funerals of veterans 
18.28 	in accordance with the program established 
18.29 	in Minnesota Statutes, section 197.231.
18.30 	(k) $26,000 each year is for spousal 
18.31 	education benefits in accordance with 
18.32 	Minnesota Statutes, section 197.75.
18.33 	(l) $500,000 each year is for providing 
18.34 	health screening exams for depleted uranium 
19.1 	in Minnesota veterans in accordance with 
19.2 	Minnesota Statutes, section 197.08. This is a 
19.3 	onetime appropriation.
19.4 	(m) $250,000 in the first year is for grants 
19.5 	to assist World War II veterans in attending 
19.6 	the dedication of the Minnesota World War II 
19.7 	Memorial in St. Paul on June 9, 2007, and for 
19.8 	other expenses of the dedication event. The 
19.9 	commissioner may spend only that portion 
19.10 	of this sum for which a matching amount, 
19.11 	whether in cash or in kind, is donated by 
19.12 	nongovernmental sources for this purpose. 
19.13 	This appropriation is available immediately. 
19.14 	(n) $80,000 the first year is for suicide 
19.15 	prevention and psychological support for 
19.16 	veterans. Of this amount, $50,000 is for a 
19.17 	study by the commissioner and the adjutant 
19.18 	general of the psychological status and 
19.19 	needs of returning Minnesota veterans, 
19.20 	and $30,000 is for a telephone hotline to 
19.21 	refer veterans to available psychological 
19.22 	counseling services. The commissioner 
19.23 	may use this appropriation to supplement 
19.24 	an existing informational hotline service 
19.25 	within the department, or may collaborate 
19.26 	with any other provider of compatible, 
19.27 	existing hotline services for this purpose. 
19.28 	The referral hotline must be available to 
19.29 	veterans statewide at all practicable hours. 
19.30 	The commissioner must broadly publicize 
19.31 	the availability of the telephone hotline 
19.32 	and any local, state, and federal counseling 
19.33 	services for Minnesota veterans using all 
19.34 	practicable means available, including but 
19.35 	not limited to: the agency Web site; local 
19.36 	media announcements; announcements in 
20.1 	service and trade publications; and any other 
20.2 	practical means of communication.
20.3 	The commissioner may spend up to two 
20.4 	percent of this appropriation for development 
20.5 	of special informational materials, such 
20.6 	as refrigerator magnets, wallet cards, and 
20.7 	other devices on which hotline numbers 
20.8 	may be kept for immediate use. The 
20.9 	commissioner also may accept and spend 
20.10 	other contributions from nongovernmental 
20.11 	sources for this purpose. This is a onetime 
20.12 	appropriation.
20.13 	(o) $338,000 each year is from the account 
20.14 	in the special revenue fund established in 
20.15 	Minnesota Statutes, section 190.19, for (1) 
20.16 	grants to veterans service organizations; and 
20.17 	(2) outreach to underserved veterans. Any 
20.18 	balance in the first year does not cancel and 
20.19 	is available in the second year.

20.20 	ARTICLE 2
20.21 	AGRICULTURE POLICY

20.22 	Section 1. Minnesota Statutes 2006, section 3.737, subdivision 1, is amended to read:
20.23 		Subdivision 1.Compensation required. (a) Notwithstanding section 3.736, 
20.24 	subdivision 3, paragraph (e), or any other law, a livestock owner shall be compensated 
20.25 	by the commissioner of agriculture for livestock that is destroyed by a gray wolf or is 
20.26 	so crippled by a gray wolf that it must be destroyed. TheExcept as provided in this 
20.27 	section, the owner is entitled to the fair market value of the destroyed livestock as 
20.28 	determined by the commissioner, upon recommendation of a university extension agent 
20.29 	or a conservation officer. In any fiscal year, a livestock owner may not be compensated 
20.30 	for a destroyed animal claim that is less than $100 in value and may be compensated up 
20.31 	to $20,000, as determined under this section. In any fiscal year, the commissioner may 
20.32 	provide compensation for claims filed under this section and section 3.7371 up to a total 
20.33 	of $100,000 for both programs combined.
21.1 	(b) Either the agent or the conservation officer must make a personal inspection of 
21.2 	the site. The agent or the conservation officer must take into account factors in addition to 
21.3 	a visual identification of a carcass when making a recommendation to the commissioner. 
21.4 	The commissioner, upon recommendation of the agent or conservation officer, shall 
21.5 	determine whether the livestock was destroyed by a gray wolf and any deficiencies in the 
21.6 	owner's adoption of the best management practices developed in subdivision 5. The 
21.7 	commissioner may authorize payment of claims only if the agent or the conservation 
21.8 	officer has recommended payment. The owner shall file a claim on forms provided by the 
21.9 	commissioner and available at the university extension agent's office.

21.10 	Sec. 2. Minnesota Statutes 2006, section 3.7371, subdivision 3, is amended to read:
21.11 		Subd. 3.Compensation. The crop owner is entitled to the target price or the 
21.12 	market price, whichever is greater, of the damaged or destroyed crop plus adjustments 
21.13 	for yield loss determined according to agricultural stabilization and conservation service 
21.14 	programs for individual farms, adjusted annually, as determined by the commissioner, 
21.15 	upon recommendation of the county extension agent for the owner's county. The 
21.16 	commissioner, upon recommendation of the agent, shall determine whether the crop 
21.17 	damage or destruction is caused by elk and, if so, the amount of the crop that is damaged 
21.18 	or destroyed. In any calendar fiscal year, a crop owner may not be compensated for a 
21.19 	damaged or destroyed crop that is less than $100 in value and may be compensated up to 
21.20 	$20,000, as determined under this section, if normal harvest procedures for the area are 
21.21 	followed. In any fiscal year, the commissioner may provide compensation for claims filed 
21.22 	under this section and section 3.737 up to a total of $100,000 for both programs combined.

21.23 	Sec. 3. Minnesota Statutes 2006, section 17.03, subdivision 3, is amended to read:
21.24 		Subd. 3.Cooperation with federal agencies. (a) The commissioner shall cooperate 
21.25 	with the government of the United States, with financial agencies created to assist in the 
21.26 	development of the agricultural resources of this state, and so far as practicable may use 
21.27 	the facilities provided by the existing state departments and the various state and local 
21.28 	organizations. This subdivision is intended to relate to every function and duty which 
21.29 	devolves upon the commissioner.
21.30 	(b) The commissioner may apply for, receive, and disburse federal funds made 
21.31 	available to the state by federal law or regulation for any purpose related to the powers 
21.32 	and duties of the commissioner. All money received by the commissioner under this 
21.33 	paragraph shall be deposited in the state treasury and is appropriated to the commissioner 
21.34 	for the purposes for which it was received. Money received under this paragraph does not 
22.1 	cancel and is available for expenditure according to federal law. The commissioner may 
22.2 	contract with and enter into grant agreements with persons, organizations, educational 
22.3 	institutions, firms, corporations, other state agencies, and any agency or instrumentality of 
22.4 	the federal government to carry out agreements made with the federal government relating 
22.5 	to the expenditure of money under this paragraph. Bid requirements under chapter 16C do 
22.6 	not apply to contracts under this paragraph.

22.7 	Sec. 4. Minnesota Statutes 2006, section 17.101, subdivision 2, is amended to read:
22.8 		Subd. 2.Agricultural development grants and contracts. In order to carry out 
22.9 	the duties in subdivision 1, the commissioner, in addition to whatever other resources 
22.10 	the department may commit, shall make grants and enter into contracts to fulfill the 
22.11 	obligations of subdivision 1. The commissioner may enter into partnerships or seek gifts to 
22.12 	carry out subdivision 1. The commissioner may contract with, among others, agricultural 
22.13 	commodity organizations, the University of Minnesota, and agriculture related businesses 
22.14 	to fulfill the duties. The commissioner shall make permanent rules for the administration 
22.15 	of these grants and contracts. The rules shall specify at a minimum:
22.16 	(a) eligibility criteria;
22.17 	(b) application procedures;
22.18 	(c) provisions for application review and project approval;
22.19 	(d) provisions for program monitoring and review for all approved grants and 
22.20 	contracts; and
22.21 	(e) other provisions the commissioner finds necessary.
22.22 	Contracts entered into by the commissioner pursuant to this subdivision shall not 
22.23 	exceed 75 percent of the cost of the project supported by the commissioner's grant. In 
22.24 	any biennium year, no organization shall receive more than $70,000 in grants from the 
22.25 	commissioner.

22.26 	Sec. 5. Minnesota Statutes 2006, section 17.102, subdivision 1, is amended to read:
22.27 		Subdivision 1.Establishment and use of label. (a) The commissioner shall 
22.28 	establish a "Minnesota grown" logo or labeling statement for use in identifying 
22.29 	agricultural products that are grown, raised, processed, or manufactured in this state. 
22.30 	The commissioner may develop labeling statements that apply to specific marketing or 
22.31 	promotional needs. One version of a labeling statement must identify food products 
22.32 	certified as organically grown in this state. The Minnesota grown logo or labeling 
22.33 	statement may be used on raw agricultural products only if 80 percent or more of the 
22.34 	agricultural product is produced in this state.
23.1 	(b) The Minnesota grown logo or labeling statement may not be used without 
23.2 	a license from the commissioner except that wholesalers and retailers may use the 
23.3 	Minnesota grown logo and labeling statement for displaying and advertising products that 
23.4 	qualify for use of the Minnesota grown logo or labeling statement.

23.5 	Sec. 6. Minnesota Statutes 2006, section 17.102, subdivision 3, is amended to read:
23.6 		Subd. 3.License. A person may not use the Minnesota grown logo or labeling 
23.7 	without an annual license from the commissioner. The commissioner shall issue licenses 
23.8 	for a fee of $5 $20.

23.9 	Sec. 7. Minnesota Statutes 2006, section 17.102, subdivision 4, is amended to read:
23.10 		Subd. 4.Minnesota grown account. The Minnesota grown account is established 
23.11 	as an account in the agricultural fund. License fee receipts and penalties collected under 
23.12 	this section must be deposited in the agricultural fund and credited to the Minnesota grown 
23.13 	account. The money in the account is continuously appropriated to the commissioner to 
23.14 	implement and enforce this section and to promote the Minnesota grown logo and labeling
23.15 	for the direct costs of implementing the Minnesota grown program.

23.16 	Sec. 8. Minnesota Statutes 2006, section 17.102, is amended by adding a subdivision 
23.17 	to read:
23.18 		Subd. 4a.Funding sources. The Minnesota grown account shall consist of 
23.19 	license fees, penalties, advertising revenue, revenue from the development and sale of 
23.20 	promotional materials, gifts, and appropriations.

23.21 	Sec. 9. Minnesota Statutes 2006, section 17.102, is amended by adding a subdivision 
23.22 	to read:
23.23 		Subd. 4b.Appropriations must be matched by private funds. Appropriations 
23.24 	from the Minnesota grown account may be expended only to the extent that they are 
23.25 	matched with contributions to the account from private sources on a basis of at least $1 
23.26 	of private contributions to each $4 of state money. For the purposes of this subdivision, 
23.27 	"private contributions" includes, but is not limited to, license fees, penalties, advertising 
23.28 	revenue, revenue from the development and sale of promotional materials, and gifts.

23.29 	Sec. 10. Minnesota Statutes 2006, section 17.117, subdivision 1, is amended to read:
23.30 		Subdivision 1.Purpose. The purpose of the agriculture best management practices 
23.31 	loan program is to provide low or no interest financing to farmers, agriculture supply 
24.1 	businesses, and rural landowners, and water-quality cooperatives for the implementation 
24.2 	of agriculture and other best management practices that reduce environmental pollution.

24.3 	Sec. 11. Minnesota Statutes 2006, section 17.117, subdivision 4, is amended to read:
24.4 		Subd. 4.Definitions. (a) For the purposes of this section, the terms defined in this 
24.5 	subdivision have the meanings given them.
24.6 	(b) "Agricultural and environmental revolving accounts" means accounts in the 
24.7 	agricultural fund, controlled by the commissioner, which hold funds available to the 
24.8 	program.
24.9 	(c) "Agriculture supply business" means a person, partnership, joint venture, 
24.10 	corporation, limited liability company, association, firm, public service company, 
24.11 	or cooperative that provides materials, equipment, or services to farmers or 
24.12 	agriculture-related enterprises.
24.13 	(d) "Allocation" means the funds awarded to an applicant for implementation of best 
24.14 	management practices through a competitive or noncompetitive application process.
24.15 	(e) "Applicant" means a local unit of government eligible to participate in this 
24.16 	program that requests an allocation of funds as provided in subdivision 6b.
24.17 	(f) "Best management practices" has the meaning given in sections 103F.711, 
24.18 	subdivision 3, and 103H.151, subdivision 2, or other practices, techniques, and measures 
24.19 	that have been demonstrated to the satisfaction of the commissioner to prevent or reduce 
24.20 	adverse environmental impacts by using the most effective and practicable means of 
24.21 	achieving environmental goals. 
24.22 	(g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner 
24.23 	applying for a low-interest loan.
24.24 	(h) "Commissioner" means the commissioner of agriculture, including when the 
24.25 	commissioner is acting in the capacity of chair of the Rural Finance Authority, or the 
24.26 	designee of the commissioner.
24.27 	(i) "Committed project" means an eligible project scheduled to be implemented at 
24.28 	a future date:
24.29 	(1) that has been approved and certified by the local government unit; and
24.30 	(2) for which a local lender has obligated itself to offer a loan.
24.31 	(j) "Comprehensive water management plan" means a state approved and locally 
24.32 	adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331, 
24.33 	103D.401, or 103D.405. 
25.1 	(k) "Cost incurred" means expenses for implementation of a project accrued because 
25.2 	the borrower has agreed to purchase equipment or is obligated to pay for services or 
25.3 	materials already provided as a result of implementing a prior an approved eligible project.
25.4 	(l) "Farmer" means a person, partnership, joint venture, corporation, limited liability 
25.5 	company, association, firm, public service company, or cooperative that regularly 
25.6 	participates in physical labor or operations management of farming and files a Schedule F 
25.7 	as part of filing United States Internal Revenue Service Form 1040 or indicates farming as 
25.8 	the primary business activity under Schedule C, K, or S, or any other applicable report to 
25.9 	the United States Internal Revenue Service.
25.10 	(m) "Lender agreement" means an agreement entered into between the commissioner 
25.11 	and a local lender which contains terms and conditions of participation in the program.
25.12 	(n) "Local government unit" means a county, soil and water conservation district, 
25.13 	or an organization formed for the joint exercise of powers under section 471.59 with 
25.14 	the authority to participate in the program. 
25.15 	(o) "Local lender" means a local government unit as defined in paragraph (n), a state 
25.16 	or federally chartered bank, a savings association, a state or federal credit union, Agribank 
25.17 	and its affiliated organizations, or a nonprofit economic development organization or other 
25.18 	financial lending institution approved by the commissioner.
25.19 	(p) "Local revolving loan account" means the account held by a local government 
25.20 	unit and a local lender into which principal repayments from borrowers are deposited and 
25.21 	new loans are issued in accordance with the requirements of the program and lender 
25.22 	agreements.
25.23 	(q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6. 
25.24 	(r) "Program" means the agriculture best management practices loan program 
25.25 	in this section.
25.26 	(s) "Project" means one or more components or activities located within Minnesota 
25.27 	that are required by the local government unit to be implemented for satisfactory 
25.28 	completion of an eligible best management practice.
25.29 	(t) "Rural landowner" means the owner of record of Minnesota real estate located 
25.30 	in an area determined by the local government unit to be rural after consideration of 
25.31 	local land use patterns, zoning regulations, jurisdictional boundaries, local community 
25.32 	definitions, historical uses, and other pertinent local factors.
25.33 	(u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph 
25.34 	(d), except as expressly limited in this section.

25.35 	Sec. 12. Minnesota Statutes 2006, section 17.117, subdivision 5a, is amended to read:
26.1 		Subd. 5a.Agricultural and environmental revolving accounts. (a) There 
26.2 	shall be established in the agriculturalspecial revenue fund revolving accounts to 
26.3 	receive appropriations, transfers of the balances from previous appropriations for the 
26.4 	activities under this section, and money from other sources. All balances from previous 
26.5 	appropriations for activities under this section and repayments of loans granted under this 
26.6 	section, including principal and interest, must be deposited into the appropriate revolving 
26.7 	account created in this subdivision or the account created in subdivision 13. Interest 
26.8 	earned in an account accrues to that account.
26.9 	(b) The money in the revolving accounts and the account created in subdivision 13 is 
26.10 	appropriated to the commissioner for the purposes of this section.

26.11 	Sec. 13. Minnesota Statutes 2006, section 17.117, subdivision 5b, is amended to read:
26.12 		Subd. 5b.Application fee. The commissioner may impose a nonrefundable 
26.13 	application fee of $50 for each loan issued under the program. The fees must be credited 
26.14 	to the agricultural best management practices administration account, which is hereby 
26.15 	established in the agriculturalspecial revenue fund. Interest earned in the account accrues 
26.16 	to the account. Money in the account and interest earned in the accounts established 
26.17 	in the agricultural fund under subdivision 5a are appropriated to the commissioner for 
26.18 	administrative expenses of the program.

26.19 	Sec. 14. Minnesota Statutes 2006, section 17.117, subdivision 11, is amended to read:
26.20 		Subd. 11.Loans issued to borrower. (a) Local lenders may issue loans only for 
26.21 	projects that are approved and certified by the local government unit as meeting priority 
26.22 	needs identified in a comprehensive water management plan or other local planning 
26.23 	documents, are in compliance with accepted practices, standards, specifications, or 
26.24 	criteria, and are eligible for financing under Environmental Protection Agency or other 
26.25 	applicable guidelines.
26.26 	(b) The local lender may use any additional criteria considered necessary to 
26.27 	determine the eligibility of borrowers for loans.
26.28 	(c) Local lenders shall set the terms and conditions of loans to borrowers, except that:
26.29 	(1) no loan to a borrower may exceed $50,000 $100,000;
26.30 	(2) no loan for a project may exceed $50,000 $100,000; and
26.31 	(3) no borrower shall, at any time, have multiple loans from this program with a total 
26.32 	outstanding loan balance of more than $50,000 $100,000.
26.33 	(d) The maximum term length for conservation tillage projects is five years. The 
26.34 	maximum term length for other projects in this paragraph is ten years.
27.1 	(e) Notwithstanding paragraph (c), a local lender may issue a loan of up to $100,000 
27.2 	for a community sewage treatment system serving two or more households.
27.3 	(f) (e) Fees charged at the time of closing must:
27.4 	(1) be in compliance with normal and customary practices of the local lender;
27.5 	(2) be in accordance with published fee schedules issued by the local lender;
27.6 	(3) not be based on participation program; and
27.7 	(4) be consistent with fees charged other similar types of loans offered by the local 
27.8 	lender.
27.9 	(g) (f) The interest rate assessed to an outstanding loan balance by the local lender 
27.10 	must not exceed three percent per year.

27.11 	Sec. 15. Minnesota Statutes 2006, section 17.983, subdivision 1, is amended to read:
27.12 		Subdivision 1.Administrative penalties; citation. If a person has violated a 
27.13 	provision of chapter 25, 28A, 29, 31, 31A, 31B, 32, or 34, the commissioner may issue a 
27.14 	written citation to the person by personal service or by certified mail. The citation must 
27.15 	describe the nature of the violation and the statute or rule alleged to have been violated; 
27.16 	state the time for correction, if applicable; and the amount of any proposed fine. The 
27.17 	citation must advise the person to notify the commissioner in writing within 30 days if the 
27.18 	person wishes to appeal the citation. If the person fails to appeal the citation, the citation 
27.19 	is the final order and not subject to further review.

27.20 	Sec. 16. Minnesota Statutes 2006, section 17B.03, is amended by adding a subdivision 
27.21 	to read:
27.22 		Subd. 4.Port of Duluth. The commissioner shall provide official services for 
27.23 	grain for export from the Port of Duluth, including inspection, weighing, supervision of 
27.24 	weights, and related services. The commissioner shall maintain and, when required, renew 
27.25 	delegated authority from the United States Department of Agriculture as required by 
27.26 	federal law to provide official export grain inspection services. 

27.27 	Sec. 17. Minnesota Statutes 2006, section 18B.065, subdivision 1, is amended to read:
27.28 		Subdivision 1.Collection and disposal. The commissioner of agriculture shall 
27.29 	establish and operate a program to collect waste pesticides. The program shall must be 
27.30 	made available to agriculture and residential pesticide end users whose waste generating 
27.31 	activity occurs in this state.

28.1 	EFFECTIVE DATE. This section is effective August 1, 2007, and applies to all 
28.2 	cooperative agreements entered into by the commissioner of agriculture and local units of 
28.3 	government for waste pesticide collection and disposal after that date.

28.4 	Sec. 18. Minnesota Statutes 2006, section 18B.065, subdivision 2a, is amended to read:
28.5 		Subd. 2a.Disposal site requirement. The commissioner must designate a place 
28.6 	in each county of the state that is available at least every other year for the residents of 
28.7 	each county in the state persons to dispose of unused portions of pesticides in accordance 
28.8 	with subdivision 1. The commissioner shall consult with the person responsible for solid 
28.9 	waste management and disposal in each county to determine an appropriate location.

28.10 	EFFECTIVE DATE. This section is effective August 1, 2007, and applies to all 
28.11 	cooperative agreements entered into by the commissioner of agriculture and local units of 
28.12 	government for waste pesticide collection and disposal after that date.

28.13 	Sec. 19. Minnesota Statutes 2006, section 18B.26, subdivision 3, is amended to read:
28.14 		Subd. 3.Application fee. (a) A registrant shall pay an annual application fee for 
28.15 	each pesticide to be registered, and this fee is set at 0.4 percent of annual gross sales 
28.16 	within the state and annual gross sales of pesticides used in the state, with a minimum 
28.17 	nonrefundable fee of $250. The registrant shall determine when and which pesticides 
28.18 	are sold or used in this state. The registrant shall secure sufficient sales information of 
28.19 	pesticides distributed into this state from distributors and dealers, regardless of distributor 
28.20 	location, to make a determination. Sales of pesticides in this state and sales of pesticides 
28.21 	for use in this state by out-of-state distributors are not exempt and must be included in the 
28.22 	registrant's annual report, as required under paragraph (c), and fees shall be paid by the 
28.23 	registrant based upon those reported sales. Sales of pesticides in the state for use outside 
28.24 	of the state are exempt from the application fee in this paragraph if the registrant properly 
28.25 	documents the sale location and distributors. A registrant paying more than the minimum 
28.26 	fee shall pay the balance due by March 1 based on the gross sales of the pesticide by the 
28.27 	registrant for the preceding calendar year. The fee for disinfectants and sanitizers shall be 
28.28 	the minimum. The minimum fee is due by December 31 preceding the year for which 
28.29 	the application for registration is made. The commissioner shall spend at least $300,000
28.30 	$400,000, not including the commissioner's administrative costs, per fiscal year from the 
28.31 	pesticide regulatory account for the purposes of the waste pesticide collection program.
28.32 	(b) An additional fee of $100 must be paid by the applicant for each pesticide to be 
28.33 	registered if the application is a renewal application that is submitted after December 31.
29.1 	(c) A registrant must annually report to the commissioner the amount and type of 
29.2 	each registered pesticide sold, offered for sale, or otherwise distributed in the state. The 
29.3 	report shall be filed by March 1 for the previous year's registration. The commissioner 
29.4 	shall specify the form of the report and require additional information deemed necessary 
29.5 	to determine the amount and type of pesticides annually distributed in the state. The 
29.6 	information required shall include the brand name, amount, and formulation of each 
29.7 	pesticide sold, offered for sale, or otherwise distributed in the state, but the information 
29.8 	collected, if made public, shall be reported in a manner which does not identify a specific 
29.9 	brand name in the report.
29.10 	(d) A registrant who is required to pay more than the minimum fee for any pesticide 
29.11 	under paragraph (a) must pay a late fee penalty of $100 for each pesticide application fee 
29.12 	paid after March 1 in the year for which the license is to be issued.

29.13 	EFFECTIVE DATE. This section is effective August 1, 2007, and applies to all 
29.14 	cooperative agreements entered into by the commissioner of agriculture and local units of 
29.15 	government for waste pesticide collection and disposal after that date.

29.16 	Sec. 20. Minnesota Statutes 2006, section 18B.33, subdivision 1, is amended to read:
29.17 		Subdivision 1.Requirement. (a) A person may not apply a pesticide for hire 
29.18 	without a commercial applicator license for the appropriate use categories or a structural 
29.19 	pest control license or aquatic pest control license.
29.20 	(b) A person with a commercial applicator license may not apply pesticides on 
29.21 	or into surface waters without an aquatic pest control license under section 18B.315, 
29.22 	except an aquatic pest control license is not required for licensed commercial applicators 
29.23 	applying pesticides for the purposes of: 
29.24 	(1) pest control on cultivated wild rice;
29.25 	(2) mosquito and black fly control operations;
29.26 	(3) pest control on rights-of-way;
29.27 	(4) aerial pest control operations for emergent vegetation control;
29.28 	(5) aerial application of piscicides; and
29.29 	(6) pest control for silvicultural operations.
29.30 	(c)(b) A commercial applicator licensee must have a valid license identification card 
29.31 	when applying pesticides for hire and must display it upon demand by an authorized 
29.32 	representative of the commissioner or a law enforcement officer. The commissioner shall 
29.33 	prescribe the information required on the license identification card.

29.34 	Sec. 21. Minnesota Statutes 2006, section 18B.34, subdivision 1, is amended to read:
30.1 		Subdivision 1.Requirement. (a) Except for a licensed commercial applicator, 
30.2 	certified private applicator, a licensed aquatic pest control applicator, or licensed structural 
30.3 	pest control applicator, a person, including a government employee, may not use a 
30.4 	restricted use pesticide in performance of official duties without having a noncommercial 
30.5 	applicator license for an appropriate use category.
30.6 	(b) A licensed noncommercial applicator may not apply pesticides into or on surface 
30.7 	waters without an aquatic pest control license, except an aquatic pest control license is not 
30.8 	required for licensed noncommercial applicators applying pesticides for the purposes of:
30.9 	(1) mosquito and black fly control operations;
30.10 	(2) pest control on rights-of-way;
30.11 	(3) pest control operations for purple loosestrife control;
30.12 	(4) application of piscicides; and
30.13 	(5) pest control for silvicultural operations.
30.14 	(c)(b) A licensee must have a valid license identification card when applying 
30.15 	pesticides and must display it upon demand by an authorized representative of the 
30.16 	commissioner or a law enforcement officer. The license identification card must contain 
30.17 	information required by the commissioner.

30.18 	Sec. 22. Minnesota Statutes 2006, section 18B.345, is amended to read:
30.19 	18B.345 PESTICIDE APPLICATION ON GOLF COURSES.
30.20 	(a) Application of a pesticide to the property of a golf course must be performed by:
30.21 	(1) a structural pest control applicator; or
30.22 	(2) a commercial or noncommercial pesticide applicator with appropriate use 
30.23 	certification; or.
30.24 	(3) an aquatic pest control applicator.
30.25 	(b) Pesticides determined by the commissioner to be sanitizers and disinfectants are 
30.26 	exempt from the requirements in paragraph (a).

30.27 	Sec. 23. Minnesota Statutes 2006, section 18C.305, is amended by adding a 
30.28 	subdivision to read:
30.29 		Subd. 3.Exemption. A permit and safeguard is not required for agricultural 
30.30 	commodity producers who store, on their own property, for their own use, no more than 
30.31 	6,000 gallons of liquid commercial fertilizer.

30.32 	Sec. 24. [18C.70] MINNESOTA AGRICULTURAL FERTILIZER RESEARCH 
30.33 	AND EDUCATION COUNCIL.
31.1 		Subdivision 1.Establishment; membership. (a) The Minnesota Agricultural 
31.2 	Fertilizer Research and Education Council is established. The council is composed of 
31.3 	12 voting members as follows:
31.4 	(1) two members of the Minnesota Crop Production Retailers; 
31.5 	(2) one member of the Minnesota Corn Growers Association; 
31.6 	(3) one member of the Minnesota Soybean Growers Association; 
31.7 	(4) one member of the sugar beet growers industry; 
31.8 	(5) one member of the Minnesota Association of Wheat Growers; 
31.9 	(6) one member of the potato growers industry; 
31.10 	(7) one member of the Minnesota Farm Bureau; 
31.11 	(8) one member of the Minnesota Farmers Union; 
31.12 	(9) one member from the Minnesota Irrigators Association; 
31.13 	(10) one member of the Minnesota Grain and Feed Association; and 
31.14 	(11) one member of the Minnesota Independent Crop Consultant Association or the 
31.15 	Minnesota certified crop advisor program. 
31.16 	(b) Council members shall serve three-year terms. After the initial council is 
31.17 	appointed, subsequent appointments must be staggered so that one-third of council 
31.18 	membership is replaced each year. Council members must be nominated by their 
31.19 	organizations and appointed by the commissioner. The council may add ex-officio 
31.20 	members at its discretion. The council must meet at least once per year, with all 
31.21 	related expenses reimbursed by members' sponsoring organizations or by the members 
31.22 	themselves. 
31.23 		Subd. 2.Powers and duties. The council must review applications and select 
31.24 	projects to receive agricultural fertilizer research and education program grants, as 
31.25 	authorized in section 18C.71. The council must establish a program to provide grants to 
31.26 	research, education, and technology transfer projects related to agricultural fertilizer, 
31.27 	soil amendments, and plant amendments. For the purpose of this section, "fertilizer" 
31.28 	includes soil amendments and plant amendments, but does not include vegetable or animal 
31.29 	manures that are not manipulated. The commissioner has authority over all deposits to 
31.30 	and withdrawals from the program account authorized in subdivision 4, but after January 
31.31 	1, 2008, the council may select the commissioner or any other person it considers fit 
31.32 	to perform all other administrative duties related to the program. The commissioner 
31.33 	is responsible for all fiscal and administrative duties in the first year and may use up 
31.34 	to eight percent of program revenue to offset costs incurred. No later than October 1, 
31.35 	2007, the commissioner must provide the council with an estimate of the annual costs the 
31.36 	commissioner would incur in administering the program.
32.1 		Subd. 3.Checkoff fees. The legislature, if requested by a formal order from the 
32.2 	council, may implement, administer, or discontinue a checkoff fee to provide funding 
32.3 	for grants under section 18C.71. During any period that a checkoff fee is in effect, any 
32.4 	person, whether in Minnesota or elsewhere, that sells fertilizer to producers must collect 
32.5 	a checkoff fee of 40 cents per ton of fertilizer sold and forward the checkoff funds at 
32.6 	least semiannually to the commissioner along with forms provided by the commissioner. 
32.7 	For the purposes of this section, "producer" means a person who owns or operates an 
32.8 	agricultural producing or growing facility for an agricultural commodity, shares in the 
32.9 	profits and risk of loss from the operation, and grows, raises, feeds, or produces the 
32.10 	agricultural commodity in Minnesota during the current or preceding calendar year. 
32.11 		Subd. 4.Program account. There is established in the state treasury an agricultural 
32.12 	fertilizer research and education program account in the agricultural fund. The checkoff 
32.13 	funds raised under this section must be deposited in the account.
32.14 		Subd. 5.Refunds. A producer may, by use of forms provided by the commissioner 
32.15 	and upon presentation of proof the commissioner requires, have the checkoff fee refunded 
32.16 	if the checkoff fee was remitted on a timely basis. The producer must submit refund 
32.17 	requests to the commissioner by February 28 each year for checkoff fees paid in the 
32.18 	previous calendar year. For checkoff fees paid between January 1, 2008, and January 1, 
32.19 	2009, refunds must not be issued until January 15, 2009.
32.20 		Subd. 6.Rules. The commissioner's duties under this section and section 18C.71 
32.21 	are not subject to the provisions of chapter 14.
32.22 		Subd. 7.Expiration. This section expires January 8, 2017.

32.23 	EFFECTIVE DATE. This section is effective January 1, 2008.

32.24 	Sec. 25. [18C.71] MINNESOTA AGRICULTURAL FERTILIZER RESEARCH 
32.25 	AND EDUCATION PROGRAM.
32.26 		Subdivision 1.Eligible projects. Eligible project activities include research, 
32.27 	education, and technology transfer related to the production and application of fertilizer, 
32.28 	soil amendments, and other plant amendments. Chosen projects must contain a component 
32.29 	of outreach that achieves a timely dissemination of findings and their applicability to the 
32.30 	production agricultural community. 
32.31 		Subd. 2.Awarding grants. Applications for program grants must be submitted in 
32.32 	the form prescribed by the Minnesota Agricultural Fertilizer Research and Education 
32.33 	Council. Applications must be submitted on or before the deadline prescribed by the 
32.34 	council. All applications are subject to a thorough in-state review by a peer committee 
32.35 	established and approved by the council. Each project meeting the basic qualifications is 
33.1 	subject to a yes or no vote by each council member. Projects chosen to receive funding 
33.2 	must achieve an affirmative vote from at least eight of the 12 council members or 
33.3 	two-thirds of voting members present. Projects awarded program funds must submit an 
33.4 	annual progress report in the form prescribed by the council. 
33.5 		Subd. 3.Annual audit. The program must have an annual audit of financial 
33.6 	activities, which the council must file with the commissioner on or before June 1 for the 
33.7 	immediately preceding year ending December 31.
33.8 		Subd. 4.Expiration. This section expires January 8, 2017.

33.9 	EFFECTIVE DATE. This section is effective January 1, 2008.

33.10 	Sec. 26. Minnesota Statutes 2006, section 18E.02, subdivision 5, is amended to read:
33.11 		Subd. 5.Eligible person. "Eligible person" means:
33.12 	(1) a responsible party or an owner of real property, but does not include the state, 
33.13 	a state agency, or a political subdivision of the state, except as provided in clause (2),; 
33.14 	common carriers, as defined by section 218.011, subdivision 10; motor carriers as defined 
33.15 	by section 221.011, subdivision 15, while transporting agricultural chemicals except as 
33.16 	provided in clause (3); or the federal government, or an agency of the federal government;
33.17 	(2) the owners of municipal airports in Minnesota where a licensed aerial pesticide 
33.18 	applicator has caused an incident through storage, handling, or distribution operations for 
33.19 	agricultural chemicals if (i) the commissioner has determined that corrective action is 
33.20 	necessary and (ii) the commissioner determines, and the Agricultural Chemical Response 
33.21 	Compensation Board concurs, that based on an affirmative showing made by the owner, a 
33.22 	responsible party cannot be identified or the identified responsible party is unable to 
33.23 	comply with an order for corrective action; or
33.24 	(3) a person involved in a transaction relating to real property who is not a responsible 
33.25 	party or owner of the real property and who voluntarily takes corrective action on the 
33.26 	property in response to a request or order for corrective action from the commissioner.

33.27 	Sec. 27. Minnesota Statutes 2006, section 18E.02, is amended by adding a subdivision 
33.28 	to read:
33.29 		Subd. 7.Incident. "Incident" means a flood, fire, tornado, transportation accident, 
33.30 	storage container rupture, leak, spill, emission discharge, escape, disposal, or other event 
33.31 	that releases an agricultural chemical accidentally or otherwise into the environment and 
33.32 	may cause unreasonable adverse effects on the environment. Incident does not include a 
33.33 	release from the normal use of a product or practice in accordance with law.

34.1 	Sec. 28. Minnesota Statutes 2006, section 18E.03, subdivision 4, is amended to read:
34.2 		Subd. 4.Fee. (a) The response and reimbursement fee consists of the surcharges and 
34.3 	any adjustments made by the commissioner in this subdivision and shall be collected by 
34.4 	the commissioner. The amount of the response and reimbursement fee shall be determined 
34.5 	and imposed annually by the commissioner as required to satisfy the requirements in 
34.6 	subdivision 3. The commissioner shall adjust the amount of the surcharges imposed in 
34.7 	proportion to the amount of the surcharges listed in this subdivision. License application 
34.8 	categories under paragraph (d) must be charged in proportion to the amount of surcharges 
34.9 	imposed up to a maximum of 50 percent of the license fees set under chapters 18B and 
34.10 	18C.
34.11 	(b) The commissioner shall impose a surcharge on pesticides registered under 
34.12 	chapter 18B to be collected as a surcharge on the registration application fee under 
34.13 	section 18B.26, subdivision 3, that is equal to 0.1 percent of sales of the pesticide in the 
34.14 	state and sales of pesticides for use in the state during the previous calendar year, except 
34.15 	the surcharge may not be imposed on pesticides that are sanitizers or disinfectants as 
34.16 	determined by the commissioner. No surcharge is required if the surcharge amount based 
34.17 	on percent of annual gross sales is less than $10. The registrant shall determine when and 
34.18 	which pesticides are sold or used in this state. The registrant shall secure sufficient sales 
34.19 	information of pesticides distributed into this state from distributors and dealers, regardless 
34.20 	of distributor location, to make a determination. Sales of pesticides in this state and sales 
34.21 	of pesticides for use in this state by out-of-state distributors are not exempt and must be 
34.22 	included in the registrant's annual report, as required under section 18B.26, subdivision 3, 
34.23 	paragraph (c), and fees shall be paid by the registrant based upon those reported sales. 
34.24 	Sales of pesticides in the state for use outside of the state are exempt from the surcharge in 
34.25 	this paragraph if the registrant properly documents the sale location and the distributors. 
34.26 	(c) The commissioner shall impose a ten cents per ton surcharge on the inspection 
34.27 	fee under section 18C.425, subdivision 6, for fertilizers, soil amendments, and plant 
34.28 	amendments. 
34.29 	(d) The commissioner shall impose a surcharge on the license application of persons 
34.30 	licensed under chapters 18B and 18C consisting of:
34.31 	(1) a $75 surcharge for each site where pesticides are stored or distributed, to 
34.32 	be imposed as a surcharge on pesticide dealer application fees under section 18B.31, 
34.33 	subdivision 5; 
34.34 	(2) a $75 surcharge for each site where a fertilizer, plant amendment, or soil 
34.35 	amendment is distributed, to be imposed on persons licensed under sections 18C.415
34.36 	and 18C.425; 
35.1 	(3) a $50 surcharge to be imposed on a structural pest control applicator license 
35.2 	application under section 18B.32, subdivision 6, for business license applications only; 
35.3 	(4) a $20 surcharge to be imposed on commercial applicator license application fees 
35.4 	under section 18B.33, subdivision 7; and
35.5 	(5) a $20 surcharge to be imposed on noncommercial applicator license application 
35.6 	fees under section 18B.34, subdivision 5, except a surcharge may not be imposed on a 
35.7 	noncommercial applicator that is a state agency, political subdivision of the state, the 
35.8 	federal government, or an agency of the federal government; and.
35.9 	(6) a $20 surcharge to be imposed on aquatic pest control licenses under section 
35.10 	18B.315. 
35.11 	(e) A $1,000 fee shall be imposed on each site where pesticides are stored and sold 
35.12 	for use outside of the state unless:
35.13 	(1) the distributor properly documents that it has less than $2,000,000 per year in 
35.14 	wholesale value of pesticides stored and transferred through the site; or
35.15 	(2) the registrant pays the surcharge under paragraph (b) and the registration fee 
35.16 	under section 18B.26, subdivision 3, for all of the pesticides stored at the site and sold for 
35.17 	use outside of the state. 
35.18 	(f) Paragraphs (c) to (e) apply to sales, licenses issued, applications received for 
35.19 	licenses, and inspection fees imposed on or after July 1, 1990.

35.20 	Sec. 29. Minnesota Statutes 2006, section 25.341, subdivision 1, is amended to read:
35.21 		Subdivision 1.Requirement. Before a person may: (1) manufacture a commercial 
35.22 	feed in the state; (2) distribute a commercial feed in or into the state; or (3) have the 
35.23 	person's name appear on the label of a commercial feed as guarantor, the person must have 
35.24 	a commercial feed license for each manufacturing or distributing facility. A person who 
35.25 	makes only retail sales of commercial feed bearing labeling or another approved indication 
35.26 	that the commercial feed is from a licensed manufacturer, guarantor, or distributor who 
35.27 	has assumed full responsibility for the tonnage inspection fee due under sections 25.31 to 
35.28 	25.43, guaranteed by another, is not required to obtain a license.

35.29 	Sec. 30. Minnesota Statutes 2006, section 28A.04, subdivision 1, is amended to read:
35.30 		Subdivision 1.Application; date of issuance. (a) No person shall engage in the 
35.31 	business of manufacturing, processing, selling, handling, or storing food without having 
35.32 	first obtained from the commissioner a license for doing such business. Applications for 
35.33 	such license shall be made to the commissioner in such manner and time as required 
35.34 	and upon such forms as provided by the commissioner and shall contain the name and 
36.1 	address of the applicant, address or description of each place of business, and the nature 
36.2 	of the business to be conducted at each place, and such other pertinent information as 
36.3 	the commissioner may require.
36.4 	(b) A retail or wholesale food handler license shall be issued for the period July 1 
36.5 	to June 30 following and shall be renewed thereafter by the licensee on or before July 
36.6 	1 each year, except that:
36.7 	(1) licenses for all mobile food concession units and retail mobile units shall must be 
36.8 	issued for the period April 1 to March 31, and shall must be renewed thereafter by the 
36.9 	licensee on or before April 1 each year; and
36.10 	(2) a license issued for a temporary food concession stand must have a license 
36.11 	issuance and renewal date consistent with appropriate statutory provisions.
36.12 	 A license for a food broker or for a food processor or manufacturer shall be issued for the 
36.13 	period January 1 to December 31 following and shall be renewed thereafter by the licensee 
36.14 	on or before January 1 of each year, except that a license for a wholesale food processor or 
36.15 	manufacturer operating only at the state fair shall be issued for the period July 1 to June 30 
36.16 	following and shall be renewed thereafter by the licensee on or before July 1 of each year. 
36.17 	A penalty for a late renewal shall be assessed in accordance with section 28A.08. 
36.18 	(c) A person applying for a new license up to 14 calendar days before the effective 
36.19 	date of the new license period under paragraph (b) must be issued a license for the 14 days 
36.20 	and the next license year as a single license and pay a single license fee as if the 14 days 
36.21 	were part of the upcoming license period.

36.22 	Sec. 31. Minnesota Statutes 2006, section 28A.06, is amended to read:
36.23 	28A.06 EXTENT OF LICENSE.
36.24 	No person, except as described in sections 27.03 and 27.04, shall be required to 
36.25 	hold more than one license in order to engage in any aspect of food handling described 
36.26 	in section 28A.05 provided, that each issued license shall be valid for no more than one 
36.27 	place of business, except that a license for a mobile unit or a retail food vehicle, portable 
36.28 	structure, or cart is valid statewide and is required to be issued only once each year unless 
36.29 	the licensee fails to display the license as required by section 28A.07 or it is a seasonal 
36.30 	permanent food stand, seasonal temporary food stand, food cart, or special event food 
36.31 	stand as defined in section 157.15, in which case the duration of the license is restricted by 
36.32 	the limitations found in the definitions in section 157.15. 

36.33 	Sec. 32. Minnesota Statutes 2006, section 28A.082, subdivision 1, is amended to read:
37.1 		Subdivision 1.Fees; application. The fees for review of food handler facility floor 
37.2 	plans under the Minnesota Food Code are based upon the square footage of the structure 
37.3 	being newly constructed, remodeled, or converted. The fees for the review shall be:

37.4		square footage
		review fee
	
37.5		0 - 4,999
........	$
	156.25 200.00
	
37.6		5,000 - 24,999
........	$
	218.75 275.00
	
37.7		25,000 plus
........	$
	343.75 425.00
	
37.8 	The applicant must submit the required fee, review application, plans, equipment 
37.9 	specifications, materials lists, and other required information on forms supplied by the 
37.10 	department at least 30 days prior to commencement of construction, remodeling, or 
37.11 	conversion.

37.12 	Sec. 33. [28A.21] FOOD SAFETY AND DEFENSE TASK FORCE.
37.13 		Subdivision 1.Establishment. The Food Safety and Defense Task Force is 
37.14 	established to advise the commissioner and the legislature on food issues and food safety.
37.15 		Subd. 2.Membership. (a) The Food Safety and Defense Task Force consists of:
37.16 	(1) the commissioner of agriculture or the commissioner's designee;
37.17 	(2) the commissioner of health or the commissioner's designee;
37.18 	(3) a representative of the United States Food and Drug Administration;
37.19 	(4) a representative of the United States Department of Agriculture;
37.20 	(5) a representative of the Agricultural Utilization Research Institute;
37.21 	(6) one member of the Minnesota Grocers Association;
37.22 	(7) one member from the University of Minnesota knowledgeable in food and food 
37.23 	safety issues; and
37.24 	(8) nine members appointed by the governor who are interested in food and food 
37.25 	safety, of whom:
37.26 	(i) two persons are health or food professionals;
37.27 	(ii) one person represents a statewide general farm organization;
37.28 	(iii) one person represents a local food inspection agency; and
37.29 	(iv) one person represents a food-oriented consumer group.
37.30 	(b) Members shall serve without compensation. Members appointed by the governor 
37.31 	shall serve four-year terms.
37.32 		Subd. 3.Organization. (a) The task force shall meet monthly or as determined by 
37.33 	the chair.
37.34 	(b) The members of the task force shall annually elect a chair and other officers 
37.35 	as the members deem necessary.
38.1 		Subd. 4.Staff. The commissioner shall provide support staff, office space, and 
38.2 	administrative services for the task force.
38.3 		Subd. 5.Duties. The task force shall:
38.4 	(1) coordinate educational efforts regarding food safety;
38.5 	(2) provide advice and coordination to state agencies as requested by the agencies;
38.6 	(3) serve as a source of information and referral for the public, news media, and 
38.7 	others concerned with food safety; and
38.8 	(4) make recommendations to Congress, the legislature, and others about appropriate 
38.9 	action to improve food safety in the state.

38.10 	Sec. 34. Minnesota Statutes 2006, section 32.21, subdivision 4, is amended to read:
38.11 		Subd. 4.Penalties. (a) A person, other than a milk producer, who violates this 
38.12 	section is guilty of a misdemeanor or subject to a civil penalty up to $1,000.
38.13 	(b) A milk producer may not change milk plants within 30 days, without permission 
38.14 	of the commissioner, after receiving notification from the commissioner under paragraph 
38.15 	(c) or (d) that the milk producer has violated this section.
38.16 	(c) A milk producer who violates subdivision 3, clause (1), (2), (3), (4), or (5), is 
38.17 	subject to clauses (1) to (3) of this paragraph.
38.18 	(1) Upon notification of the first violation in a 12-month period, the producer must 
38.19 	meet with the qualified dairy sanitarian to initiate corrective action within 30 days.
38.20 	(2) Upon the second violation within a 12-month period, the producer is subject to 
38.21 	a civil penalty of $300. The commissioner shall notify the producer by certified mail 
38.22 	stating the penalty is payable in 30 days, the consequences of failure to pay the penalty, 
38.23 	and the consequences of future violations.
38.24 	(3) Upon the third violation within a 12-month period, the producer is subject to 
38.25 	an additional civil penalty of $300 and possible revocation of the producer's permit or 
38.26 	certification. The commissioner shall notify the producer by certified mail that all civil 
38.27 	penalties owed must be paid within 30 days and that the commissioner is initiating 
38.28 	administrative procedures to revoke the producer's permit or certification to sell milk 
38.29 	for at least 30 days.
38.30 	(d) The producer's shipment of milk must be immediately suspended if the producer 
38.31 	is identified as an individual source of milk containing residues causing a bulk load of 
38.32 	milk to test positive in violation of subdivision 3, clause (6) or (7). The Grade A or 
38.33 	manufacturing grade permit must be converted to temporary status for not more than 
38.34 	30 days and shipment may resume only after subsequent milk has been sampled by 
39.1 	the commissioner or the commissioner's agent and found to contain no residues above 
39.2 	established tolerances or safe levels.
39.3 	The Grade A or manufacturing grade permit may be restored if the producer 
39.4 	completes the "Milk and Dairy Beef Residue Prevention Protocol" with a licensed 
39.5 	veterinarian, displays the signed certificate in the milkhouse, and sends verification to the 
39.6 	commissioner within the 30-day temporary permit status period. If the producer does 
39.7 	not comply within the temporary permit status period, the Grade A or manufacturing 
39.8 	grade permit must be suspended. A milk producer whose milk supply is in violation of 
39.9 	subdivision 3, clause (6) or (7), and has caused a bulk load to test positive is subject to 
39.10 	clauses (1) to (3) of this paragraph.
39.11 	(1) For the first violation in a 12-month period, the penalty is the value of all milk on 
39.12 	the contaminated load plus any costs associated with the disposition of the contaminated 
39.13 	load. Future pickups are prohibited until subsequent testing reveals the milk is free of 
39.14 	drug residue. A farm inspection must be completed by a qualified dairy sanitarian and 
39.15 	the producer to determine the cause of the residue and actions required to prevent future 
39.16 	violations.
39.17 	(2) For the second violation in a 12-month period, the penalty is the value of all 
39.18 	milk on the contaminated load plus any costs associated with the disposition of the 
39.19 	contaminated load. Future pickups are prohibited until subsequent testing reveals the milk 
39.20 	is free of drug residue. A farm inspection must be completed by the regulatory agency 
39.21 	or its agent a qualified dairy sanitarian to determine the cause of the residue and actions 
39.22 	required to prevent future violations.
39.23 	(3) For the third or subsequent violation in a 12-month period, the penalty is the value 
39.24 	of all milk on the contaminated load plus any costs associated with the disposition of the 
39.25 	contaminated load. Future pickups are prohibited until subsequent testing reveals the milk 
39.26 	is free of drug residue. The commissioner or the commissioner's agent shall also notify the 
39.27 	producer by certified mail that the commissioner is initiating administrative procedures to 
39.28 	revoke the producer's right permit or certification to sell milk for a minimum of 30 days.
39.29 	(4) If a bulk load of milk tests negative for residues and there is a positive producer 
39.30 	sample on the load, no civil penalties may be assessed to the producer. The plant must 
39.31 	report the positive result within 24 hours and reject further milk shipments from that 
39.32 	producer until the producer's milk tests negative. A farm inspection must be completed 
39.33 	by the plant representative and the producer a qualified dairy sanitarian to determine the 
39.34 	cause of the residue and actions required to prevent future violations. The department 
39.35 	shall suspend the producer's permit and count the violation on the producer's record. The 
39.36 	Grade A or manufacturing grade permit must be converted to temporary status for not 
40.1 	more than 30 days during which time the producer must review the "Milk and Dairy Beef 
40.2 	Residue Prevention Protocol" with a licensed veterinarian, display the signed certificate 
40.3 	in the milkhouse, and send verification to the commissioner. If these conditions are met, 
40.4 	the Grade A or manufacturing grade permit must be reinstated. If the producer does not 
40.5 	comply within the temporary permit status period, the Grade A or manufacturing grade 
40.6 	permit must be suspended.
40.7 	(e) A milk producer that has been certified as completing the "Milk and Dairy Beef 
40.8 	Residue Prevention Protocol" within 12 months of the first violation of subdivision 3, 
40.9 	clause (7), need only review the cause of the violation with a field service representative 
40.10 	within three days to maintain Grade A or manufacturing grade permit and shipping status 
40.11 	if all other requirements of this section are met.
40.12 	(f) Civil penalties collected under this section must be deposited in the milk 
40.13 	inspection services account established in this chapter.

40.14 	Sec. 35. Minnesota Statutes 2006, section 32.212, is amended to read:
40.15 	32.212 MILK HOUSES FOR BULK TANKS.
40.16 	Any producer using a bulk tank for cooling and storage of milk to be used for 
40.17 	manufacturing purposes shall have an enclosed milk room which shall conform to the 
40.18 	standards provided by this section and section 32.213. The floor shall be constructed of 
40.19 	concrete or other impervious material, maintained in good repair, and graded to provide 
40.20 	proper drainage. The walls and ceilings of the room shall be sealed and constructed 
40.21 	of smooth easily cleaned material. All windows shall be screened and doors shall be 
40.22 	self-closing. It shall be well ventilated and must meet the following requirements: 
40.23 	(1) The bulk tank shall not be located over a drain or under a ventilator.
40.24 	(2) The hose port shall be located in an exterior wall and fitted with a tight 
40.25 	self-closing door.
40.26 	(3) Each milk room shall have an adequate supply of water readily accessible with 
40.27 	facilities for heating the water, to insure the cleaning and sanitizing of the bulk tank, 
40.28 	utensils and equipment and the keeping of the milk room clean.
40.29 	(4) No lights shall be placed directly over the bulk tank.
40.30 	(5) The bulk tank shall be properly located in the milk room for easy access to all 
40.31 	areas for cleaning and servicing.
40.32 	(6) The milkhouse shall be used only for storage of milk, milk utensils, and supplies 
40.33 	incidental to the production of milk.
40.34 	(7) This section and section 32.213 are is effective for all bulk tanks for milk 
40.35 	produced for manufacturing purposes. 
41.1 	(8) No milk processor shall buy milk from any producer of milk using a bulk 
41.2 	tank to be used for manufacturing purposes unless such producer has complied with the 
41.3 	provisions of this section.
41.4 	(9) After July 1, 1965, no person shall install a bulk tank except in a milk room or 
41.5 	milkhouse which complies with the provisions of this section and section 32.213. 
41.6 	(10) The enforcement of this section and section 32.213 shall be administered by 
41.7 	the Minnesota Department of Agriculture. 
41.8 	(11) Any person violating any provisions of this section and section 32.213 shall be 
41.9 	punished by a fine of not more than $50. 

41.10 	Sec. 36. Minnesota Statutes 2006, section 32.394, subdivision 4, is amended to read:
41.11 		Subd. 4.Rules. The commissioner shall by rule promulgate adopt identity, 
41.12 	production, and processing standards for milk, milk products, and goat milk which are 
41.13 	intended to bear the Grade A label.
41.14 	In the exercise of the authority to establish requirements for Grade A milk, milk 
41.15 	products, and goat milk, the commissioner adopts definitions, standards of identity, and 
41.16 	requirements for production and processing contained in the "2001 Grade A Pasteurized 
41.17 	Milk Ordinance" and the "1995 Grade A Condensed and Dry Milk Ordinance" of the 
41.18 	United States Department of Health and Human Services, in a manner provided for and 
41.19 	not in conflict with law.

41.20 	Sec. 37. Minnesota Statutes 2006, section 32.415, is amended to read:
41.21 	32.415 MILK FOR MANUFACTURING; QUALITY STANDARDS.
41.22 	(a) The commissioner may adopt rules to provide uniform quality standards, 
41.23 	and producers of milk used for manufacturing purposes shall conform to the 
41.24 	standards contained in Subparts B, C, D, E, and F of the United States Department of 
41.25 	Agriculture Consumer and Marketing Service Recommended Requirements for Milk 
41.26 	for Manufacturing Purposes and its Production and Processing, as revised through June 
41.27 	17, 2002, except that the commissioner shall develop methods by which producers can 
41.28 	comply with the standards without violation of religious beliefs.
41.29 	(b) The commissioner shall perform or contract for the performance of the 
41.30 	inspections necessary to implement this section or shall certify dairy industry personnel to 
41.31 	perform the inspections.
41.32 	(c) The commissioner and other employees of the department shall make every 
41.33 	reasonable effort to assist producers in achieving the milk quality standards at minimum 
41.34 	cost and to use the experience and expertise of the University of Minnesota and the 
42.1 	Agricultural Extension Service to assist producers in achieving the milk quality standards 
42.2 	in the most cost-effective manner.
42.3 	(d) The commissioner shall consult with producers, processors, and others involved 
42.4 	in the dairy industry in order to prepare for the implementation of this section including 
42.5 	development of informational and educational materials, meetings, and other methods of 
42.6 	informing producers about the implementation of standards under this section.

42.7 	Sec. 38. [35.085] INDEMNITY FOR DESTROYED CATTLE.
42.8 	(a) The board may pay indemnity to cattle owners who choose to euthanize cattle 
42.9 	that test suspect for bovine tuberculosis, if funds are available from appropriations for 
42.10 	the purpose and if the United States Department of Agriculture refuses to pay indemnity 
42.11 	for the animal. The board shall pay fair market value less salvage value as appraised by 
42.12 	a disinterested appraiser appointed by the board. The board's decision as to the amount 
42.13 	of indemnity is final. If the owner refuses the board's offer, the owner need not dispose 
42.14 	of the animal unless and until it later shows positive to any recognized test for bovine 
42.15 	tuberculosis.
42.16 	(b) Indemnity payments made by the board are subject to the requirements of 
42.17 	chapter 336A.

42.18 	Sec. 39. [35.244] RULES FOR CONTROL OF BOVINE TUBERCULOSIS.
42.19 	The board may adopt rules to provide for the control of tuberculosis in cattle. The 
42.20 	rules may include provisions for quarantine, tests, and such other measures as the board 
42.21 	deems appropriate. Federal regulations, as provided by Code of Federal Regulations, title 
42.22 	9, part 77, and the Bovine Tuberculosis Eradication Uniform Methods and Rules, are 
42.23 	incorporated as part of the rules in this state.

42.24 	Sec. 40. [38.171] CAMPGROUND DURING FAIRS.
42.25 	Notwithstanding sections 327.14 to 327.28 or any rule adopted by the commissioner 
42.26 	of health, during a county fair or other fair requiring camping accommodations, a camping 
42.27 	area maintained by a county agricultural society must have a minimum area of 300 square 
42.28 	feet per site and the total number of sites must not exceed one site for every 300 square 
42.29 	feet of usable land area.

42.30 	Sec. 41. Minnesota Statutes 2006, section 41B.03, subdivision 1, is amended to read:
42.31 		Subdivision 1.Eligibility generally. To be eligible for a program in sections 
42.32 	41B.01 to 41B.23: 
43.1 	(1) a borrower must be a resident of Minnesota or a domestic family farm 
43.2 	corporation or family farm partnership, as defined in an entity eligible to own farm land 
43.3 	under section 500.24, subdivision 2; and 
43.4 	(2) the borrower or one of the borrowers must be the principal operator of the 
43.5 	farm or, for a prospective homestead redemption borrower, must have at one time been 
43.6 	the principal operator of a farm.

43.7 	Sec. 42. Minnesota Statutes 2006, section 41B.043, subdivision 2, is amended to read:
43.8 		Subd. 2.Specifications. No direct loan may exceed $35,000 or $125,000 for a loan 
43.9 	participation. Each direct loan and participation must be secured by a mortgage on real 
43.10 	property and such other security as the authority may require.

43.11 	Sec. 43. Minnesota Statutes 2006, section 41B.043, subdivision 3, is amended to read:
43.12 		Subd. 3.Application and origination fee. The authority may impose a reasonable 
43.13 	nonrefundable application fee for each application submitted for a direct loan or
43.14 	participation and an origination fee for each direct loan issued under the agricultural 
43.15 	improvement loan program. The origination fee initially shall be set at 1.5 percent and The 
43.16 	application fee atis initially $50. The authority may review the fees annually and make 
43.17 	adjustments as necessary. The fees must be deposited in the state treasury and credited 
43.18 	to an account in the special revenue fund. Money in this account is appropriated to the 
43.19 	commissioner for administrative expenses of the agricultural improvement loan program.

43.20 	Sec. 44. Minnesota Statutes 2006, section 41B.043, subdivision 4, is amended to read:
43.21 		Subd. 4.Interest rate. The interest rate per annum on the agricultural improvement 
43.22 	direct loan or participation must be the rate of interest determined by the authority to be 
43.23 	necessary to provide for the timely payment of principal and interest when due on bonds 
43.24 	or other obligations of the authority issued under chapter 41B to provide financing for 
43.25 	direct loans and participations made under the agricultural improvement loan program, 
43.26 	and to provide for reasonable and necessary costs of issuing, carrying, administering, 
43.27 	and securing the bonds or notes and to pay the costs incurred and to be incurred by the 
43.28 	authority in the implementation of the agricultural improvement loan program.

43.29 	Sec. 45. Minnesota Statutes 2006, section 41B.046, subdivision 4, is amended to read:
43.30 		Subd. 4.Eligibility. To be eligible for this program a borrower must:
43.31 	(1) be a resident of Minnesota or a domestic family farm corporation as defined in 
43.32 	section 500.24, subdivision 2 meet the requirements of section 41B.03, subdivision 1; 
44.1 	(2) be a grower of the agricultural product which is to be processed by an agricultural 
44.2 	product processing facility;
44.3 	(3) demonstrate an ability to repay the loan; and
44.4 	(4) meet any other requirements which the authority may impose by rule.

44.5 	Sec. 46. Minnesota Statutes 2006, section 41B.047, is amended to read:
44.6 	41B.047 DISASTER RECOVERY LOAN PROGRAM.
44.7 		Subdivision 1.Establishment. The authority shall establish and implement a 
44.8 	disaster recovery loan program to help farmers:
44.9 	(1) clean up, repair, or replace farm structures and septic and water systems, as well 
44.10 	as replacement of replace seed, other crop inputs, feed, and livestock, when damaged 
44.11 	by high winds, hail, tornado, or flood; or
44.12 	(2) purchase watering systems, irrigation systems, and other drought mitigation 
44.13 	systems and practices when drought is the cause of the purchase.
44.14 		Subd. 3.Eligibility. To be eligible for this program, a borrower must:
44.15 	(1) be a resident of this state or a domestic family farm corporation or family farm 
44.16 	partnership as defined in section 500.24, subdivision 2 meet the requirements of section 
44.17 	41B.03, subdivision 1; 
44.18 	(2) certify that the damage or loss was sustained within a county that was the subject 
44.19 	of a state or federal disaster declaration;
44.20 	(3) demonstrate an ability to repay the loan;
44.21 	(4) have a total net worth, including assets and liabilities of the borrower's spouse 
44.22 	and dependents, of less than $400,000 $660,000 in 2004 and an amount in subsequent 
44.23 	years which is adjusted for inflation by multiplying that amount by the cumulative 
44.24 	inflation rate as determined by the Consumer Price Index; and
44.25 	(5) have received at least 50 percent of average annual gross income from farming 
44.26 	for the past three years.
44.27 		Subd. 4.Loans. (a) The authority may participate in a disaster recovery loan with 
44.28 	an eligible lender to a farmer who is eligible under subdivision 3. Participation is limited 
44.29 	to 45 percent of the principal amount of the loan or $50,000, whichever is less. The 
44.30 	interest rates and repayment terms of the authority's participation interest may differ from 
44.31 	the interest rates and repayment terms of the lender's retained portion of the loan, but the 
44.32 	authority's interest rate must not exceed four percent.
44.33 	(b) Standards for loan amortization shall be set by the Rural Finance Authority 
44.34 	not to exceed ten years.
45.1 	(c) Security for the disaster recovery loans must be a personal note executed by the 
45.2 	borrower and whatever other security is required by the eligible lender or the authority.
45.3 	(d) The authority may impose a reasonable nonrefundable application fee for a 
45.4 	disaster recovery loan. The authority may review the fee annually and make adjustments 
45.5 	as necessary. The application fee is initially $50. Application fees received by the 
45.6 	authority must be deposited in the disaster recovery revolving fund revolving loan account 
45.7 	established under section 41B.06.
45.8 	(e) Disaster recovery loans under this program will be made using money in the 
45.9 	disaster recovery revolving fund established under subdivision 2 revolving loan account 
45.10 	established under section 41B.06.
45.11 	(f) Repayments of financial assistance under this section, including principal and 
45.12 	interest, must be deposited into the revolving loan account established under section 
45.13 	41B.06.

45.14 	Sec. 47. Minnesota Statutes 2006, section 41B.055, is amended to read:
45.15 	41B.055 LIVESTOCK EQUIPMENT PILOT LOAN PROGRAM.
45.16 		Subdivision 1.Establishment. The authority must establish and implement 
45.17 	a livestock equipment pilot loan program to help finance the first purchase of 
45.18 	livestock-related equipment and make livestock facilities improvements.
45.19 		Subd. 2.Eligibility. Notwithstanding section 41B.03, to be eligible for this program 
45.20 	a borrower must:
45.21 	(1) be a resident of Minnesota or general partnership or a family farm corporation, 
45.22 	authorized farm corporation, family farm partnership, or authorized farm partnership as 
45.23 	defined in section 500.24, subdivision 2;
45.24 	(2) be the principal operator of a livestock farm;
45.25 	(3) have a total net worth, including assets and liabilities of the borrower's spouse 
45.26 	and dependents, no greater than the amount stipulated in section 41B.03, subdivision 3;
45.27 	(4) demonstrate an ability to repay the loan; and
45.28 	(5) hold an appropriate feedlot registration or be using the loan under this program 
45.29 	to meet registration requirements. In addition to the requirements in clauses (1) to (5), 
45.30 	preference must be given to applicants who have farmed less than ten years as evidenced 
45.31 	by their filing of schedule F in their federal tax returns.
45.32 		Subd. 3.Loans. (a) The authority may participate in a livestock equipment loan 
45.33 	equal to 90 percent of the purchased equipment value with an eligible lender to a farmer 
45.34 	who is eligible under subdivision 2. Participation is limited to 45 percent of the principal 
45.35 	amount of the loan or $40,000, whichever is less. The interest rates and repayment terms 
46.1 	of the authority's participation interest may differ from the interest rates and repayment 
46.2 	terms of the lender's retained portion of the loan, but the authority's interest rate must 
46.3 	not exceed three percent. The authority may review the interest annually and make 
46.4 	adjustments as necessary.
46.5 	(b) Standards for loan amortization must be set by the Rural Finance Authority and 
46.6 	must not exceed seventen years.
46.7 	(c) Security for a livestock equipment loan must be a personal note executed by the 
46.8 	borrower and whatever other security is required by the eligible lender or the authority.
46.9 	(d) Refinancing of existing debt is not an eligible purpose.
46.10 	(e) The authority may impose a reasonable, nonrefundable application fee for 
46.11 	a livestock equipment loan. The authority may review the fee annually and make 
46.12 	adjustments as necessary. The initial application fee is $50. Application fees received by 
46.13 	the authority must be deposited in the revolving loan account established in section 41B.06.
46.14 	(f) Loans under this program must be made using money in the revolving loan 
46.15 	account established in section 41B.06.
46.16 		Subd. 4.Eligible expenditures. Money may be used for loans for the acquisition of 
46.17 	equipment for animal housing, confinement, animal feeding, milk production, and waste 
46.18 	management, including the following, if related to animal husbandry:
46.19 	(1) fences;
46.20 	(2) watering facilities;
46.21 	(3) feed storage and handling equipment;
46.22 	(4) milking parlors;
46.23 	(5) milking equipment;
46.24 	(6) scales;
46.25 	(7) milk storage and cooling facilities;
46.26 	(8) manure pumping and storage facilities; and
46.27 	(9) capital investment in pasture.;
46.28 	(10) hoop barns;
46.29 	(11) portable structures;
46.30 	(12) hay and forage equipment; and
46.31 	(13) related structural work for the installation of equipment.

46.32 	Sec. 48. Minnesota Statutes 2006, section 41B.06, is amended to read:
46.33 	41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.
46.34 	There is established in the rural finance administration fund a Rural Finance 
46.35 	Authority revolving loan account that is eligible to receive appropriations and the transfer 
47.1 	of loan funds from other programs. All repayments of financial assistance granted from 
47.2 	this account, including principal and interest, must be deposited into this account. Interest 
47.3 	earned on money in the account accrues to the account, and the money in the account 
47.4 	is appropriated to the commissioner of agriculture for purposes of the Rural Finance 
47.5 	Authority livestock equipment, methane digester, disaster recovery, and value-added 
47.6 	agricultural product loan programs, including costs incurred by the authority to establish 
47.7 	and administer the programs.

47.8 	Sec. 49. Minnesota Statutes 2006, section 41C.05, subdivision 2, is amended to read:
47.9 		Subd. 2.Eligibility; beginning farmers. The authority shall provide in the 
47.10 	agricultural development bond beginning farmer and agricultural business enterprise loan 
47.11 	program that a mortgage or a contract on behalf of a beginning farmer may be provided if 
47.12 	the borrower qualifies under authority rules and under federal tax law governing qualified 
47.13 	small issue bonds and must:
47.14 	(1) be a resident of Minnesota;
47.15 	(2) have sufficient education, training, or experience in the type of farming for 
47.16 	which the loan is desired;
47.17 	(3) have a low or moderate net worth, as defined in section 41C.02, subdivision 12; 
47.18 	(4) certify that the agricultural land to be purchased will be used by the borrower 
47.19 	for agricultural purposes;
47.20 	(5) certify that farming will be the principal occupation of an individual borrower;
47.21 	(6) agree to participate in a farm management program approved by the 
47.22 	commissioner of agriculture for at least the first fivethree years of the loan, if an approved 
47.23 	program is available within 45 miles from the borrower's residence. The commissioner 
47.24 	may waive this requirement for any of the programs administered by the authority if the 
47.25 	participant requests a waiver and provides justification; and
47.26 	(7) agree to file an approved soil and water conservation plan with the Soil 
47.27 	Conservation Service office in the county where the land is located.

47.28 	Sec. 50. Minnesota Statutes 2006, section 116.0714, is amended to read:
47.29 	116.0714 NEW OPEN AIR SWINE BASINS.
47.30 	After May 18, 2002, The commissioner of the Pollution Control Agency or a county 
47.31 	board shall not approve any permits for the construction of new open air swine basins, 
47.32 	except that existing facilities may use one basin of less than 1,000,000 gallons as part 
47.33 	of a permitted waste treatment program for resolving pollution problems or to allow 
48.1 	conversion of an existing basin of less than 1,000,000 gallons to a different animal type, 
48.2 	provided all standards are met. This section expires June 30, 2007 2012.

48.3 	Sec. 51. Minnesota Statutes 2006, section 156.001, is amended by adding a subdivision 
48.4 	to read:
48.5 		Subd. 3a.Animal chiropractic. "Animal chiropractic" means a system of treating 
48.6 	diseases by manipulation of the vertebral column.

48.7 	Sec. 52. Minnesota Statutes 2006, section 156.001, is amended by adding a subdivision 
48.8 	to read:
48.9 		Subd. 3b.Artificial insemination. "Artificial insemination" means the implanting 
48.10 	of live spermatozoa into a female animal.

48.11 	Sec. 53. Minnesota Statutes 2006, section 156.001, is amended by adding a subdivision 
48.12 	to read:
48.13 		Subd. 6b.Farriery. "Farriery" means techniques used by a farrier or blacksmith 
48.14 	including trimming hooves and making, fitting, and remodeling horseshoes. 

48.15 	Sec. 54. Minnesota Statutes 2006, section 156.001, is amended by adding a subdivision 
48.16 	to read:
48.17 		Subd. 8a.Massage. "Massage" means systematic therapeutic stroking or kneading 
48.18 	of the body or a specific body part of an animal to improve circulation and muscle 
48.19 	function, release scar tissue, or produce relaxation.

48.20 	Sec. 55. Minnesota Statutes 2006, section 156.001, is amended by adding a subdivision 
48.21 	to read:
48.22 		Subd. 10a.Teeth floating. "Teeth floating" for horses and other equine animals 
48.23 	means:
48.24 	(1) removal of enamel points from teeth with hand-held, nonmotorized, 
48.25 	non-air-powered files or rasps;
48.26 	(2) reestablishing normal molar table angles and freeing up lateral excursion and 
48.27 	other normal movements of the mandible;
48.28 	(3) shaping the lingual aspect of the lower arcades and the buccal aspect of the upper 
48.29 	arcades to a rounded smooth surface; and
48.30 	(4) removing points from the buccal aspect of the upper arcade and the lingual 
48.31 	aspect of the lower arcade.

49.1 	Sec. 56. Minnesota Statutes 2006, section 156.12, subdivision 1, is amended to read:
49.2 		Subdivision 1.Practice. (a) The practice of veterinary medicine, as used in this 
49.3 	chapter, shall mean the diagnosis, treatment, correction, relief, or prevention of animal 
49.4 	disease, deformity, defect, injury, or other physical or mental conditions; the performance 
49.5 	of obstetrical procedures for animals, including determination of pregnancy and correction 
49.6 	of sterility or infertility; and the rendering of advice or recommendations with regard to 
49.7 	any of the above. The practice of veterinary medicine shall include but not be limited to 
49.8 	the prescription or administration of any drug, medicine, biologic, apparatus, application, 
49.9 	anesthetic, or other therapeutic or diagnostic substance or technique. 
49.10 	(b) The practice of veterinary medicine shall not be construed to include the 
49.11 	dehorning of cattle and goats or, the castration of cattle, swine, goats, and sheep, or the 
49.12 	docking of sheep, artificial insemination, teeth floating, farriery, animal chiropractic, 
49.13 	massage, or other treatments of similar or less risk or requiring similar or less formal 
49.14 	veterinary education employed to maintain domestic animals in good health.

49.15 	Sec. 57. Minnesota Statutes 2006, section 343.10, is amended to read:
49.16 	343.10 COUNTY AND DISTRICT SOCIETIES.
49.17 	A county society for the prevention of cruelty to animals may be formed in any 
49.18 	county and a district society for the prevention of cruelty to animals may be formed in any 
49.19 	group of two or more contiguous or noncontiguous counties or parts of counties by not 
49.20 	less than seven incorporators. County and district societies shall be created as corporations 
49.21 	under chapter 317A and as provided in the bylaws of the state federation. No county or 
49.22 	district society may conduct investigations or assist in prosecutions outside the boundaries 
49.23 	of the county or counties included in the county or district society.

49.24 	Sec. 58. COMMISSIONER TO EVALUATE AND REPORT.
 49.25 	By March 1, 2008, the commissioner of agriculture in consultation with the 
49.26 	commissioner of health and the University of Minnesota shall evaluate the potential 
49.27 	hazards posed by plants to retail consumers and livestock, and report the findings to 
49.28 	the standing committees of the senate and the house of representatives with jurisdiction 
49.29 	over agriculture policy. 

49.30 	Sec. 59. WASTE PESTICIDE TASK FORCE, REPORT.
 49.31 	The commissioner of agriculture shall convene a waste pesticide task force to review 
49.32 	all aspects of the waste pesticide collection issue and develop a comprehensive approach 
49.33 	to equitably and efficiently collect waste pesticides statewide. The task force shall include 
50.1 	a representative of each of the following organizations: the house of representatives, 
50.2 	as appointed by the chair of the house committee with jurisdiction over agriculture 
50.3 	finance; the senate, as appointed by the chair of the senate committee with jurisdiction 
50.4 	over agriculture finance; the departments of agriculture; the department of pollution 
50.5 	control; the Minnesota Solid Waste Administrators Association; the metropolitan Solid 
50.6 	Waste Management Coordinating Board; the Association of Minnesota Counties; the 
50.7 	Minnesota Farm Bureau; and the Minnesota Farmers Union. The task force must have 
50.8 	three additional members representing Minnesota pesticide registrants, distributors, and 
50.9 	retailers, respectively, as appointed by the commissioner. Public members of the task force 
50.10 	must serve without compensation or reimbursement of personal expenses. No later than 
50.11 	January 5, 2008, the commissioner of agriculture shall present the task force's findings 
50.12 	and specific recommendations to the house and senate committees with jurisdiction over 
50.13 	agriculture finance. 

50.14 	Sec. 60. WASTE PESTICIDE COLLECTION, DISPOSAL.
 50.15 	Notwithstanding section 18B.26, subdivision 2, the commissioner of agriculture 
50.16 	shall spend at least $600,000 in fiscal year 2008 from the pesticide regulatory account 
50.17 	for the purposes of the waste pesticide collection program. During fiscal year 2008, the 
50.18 	commissioner shall provide an opportunity for residents to dispose of waste residential 
50.19 	and agricultural pesticides in each county where the commissioner has not provided an 
50.20 	opportunity for persons to dispose of waste pesticides within county boundaries during the 
50.21 	previous two fiscal years.

50.22 	Sec. 61. RESIDENTIAL ANTIMICROBIAL PESTICIDE APPLICATOR 
50.23 	LICENSE STUDY.
 50.24 	(a) The commissioners of agriculture and health must study the development 
50.25 	and implementation of a new category of license for commercial pesticide applicators 
50.26 	who apply antimicrobial pesticides for hire to mitigate or remediate mold in homes, 
50.27 	apartments, or other residences. The commissioners must seek and obtain consultation 
50.28 	with representatives of the University of Minnesota qualified in mold and other fungal 
50.29 	microbe pest control. They shall prepare a report which must include: 
50.30 	(1) a discussion of existing federal and state laws and rules, if any, that govern 
50.31 	commercial residential antimicrobial pesticide mold control applicators; 
50.32 	(2) a literature review on the need for, and efficacy of, antimicrobial pesticides used 
50.33 	in residential settings for mold control and any potential dangers posed by the residential 
50.34 	application of these products, particularly to young children and other sensitive persons; 
51.1 	(3) a survey of the law and process, if any, for licensing commercial residential 
51.2 	antimicrobial pesticide mold control applicators in the rest of the United States; and
51.3 	(4) recommended procedures for licensing prospective residential antimicrobial 
51.4 	pesticide mold control applicators in Minnesota, highlighting provisions that test the 
51.5 	applicant's understanding of the efficacy of antimicrobial pesticides and methods for 
51.6 	mitigating any potential dangers discovered in the review required in clause (2).
51.7 	(b) No later than December 1, 2007, the commissioners shall report the results of 
51.8 	the study described in paragraph (a) and an implementation plan to the house and senate 
51.9 	committees with jurisdiction over agricultural policy and finance and environmental 
51.10 	health.

51.11 	Sec. 62.  REPEALER.
 51.12 	(a) Minnesota Statutes 2006, sections 17.109; 18B.315; 18C.425, subdivision 5; 
51.13 	32.213; 35.08; 35.09; 35.10; 35.11; 35.12; 41B.043, subdivision 1a; and 156.075, are 
51.14 	repealed.
51.15 	(b) Minnesota Rules, parts 1705.0840; 1705.0850; 1705.0860; 1705.0870; 
51.16 	1705.0880; 1705.0890; 1705.0900; 1705.0910; 1705.0920; 1705.0930; 1705.0940; 
51.17 	1705.0950; 1705.0960; 1705.0970; 1705.0980; 1705.0990; 1705.1000; 1705.1010; 
51.18 	1705.1020; 1705.1030; 1705.1040; 1705.1050; 1705.1060; 1705.1070; 1705.1080; 
51.19 	1705.1086; 1705.1087; and 1705.1088, are repealed.

51.20 	ARTICLE 3
51.21 	BIOENERGY POLICY

51.22 	Section 1. [41A.10] NEXTGEN ENERGY.
51.23 		Subdivision 1.Purpose. It is the goal of the state through the Department of 
51.24 	Agriculture to research and develop energy sources to displace fossil fuels with renewable 
51.25 	technology.
51.26 		Subd. 2.NextGen Energy Board. There is created a NextGen Energy Board 
51.27 	consisting of the commissioners of agriculture, commerce, natural resources, the Pollution 
51.28 	Control Agency, and employment and economic development; the chairs of the house and 
51.29 	senate committees with jurisdiction over energy finance; the chairs of the house and 
51.30 	senate committees with jurisdiction over agriculture finance; one member of the second 
51.31 	largest political party in the house, as appointed by the chairs of the house committees 
51.32 	with jurisdiction over agriculture finance and energy finance; one member of the second 
51.33 	largest political party in the senate, as appointed by the chairs of the senate committees 
51.34 	with jurisdiction over agriculture finance and energy finance; and the executive director 
52.1 	of the Agricultural Utilization Research Institute. In addition, the governor shall appoint 
52.2 	six members: two representing statewide agriculture organizations; two representing 
52.3 	statewide environment and natural resource conservation organizations; one representing 
52.4 	the University of Minnesota; and one representing the Minnesota State Colleges and 
52.5 	Universities system. 
52.6 		Subd. 3.Duties. The board shall research and report to the commissioner of 
52.7 	agriculture and to the legislature recommendations as to how the state can invest its 
52.8 	resources to most efficiently achieve energy independence, agricultural and natural 
52.9 	resources sustainability, and rural economic vitality. The board shall:
52.10 	(1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen, 
52.11 	methanol, diesel, and ethanol within Minnesota;
52.12 	(2) develop equity grant programs to assist locally owned facilities;
52.13 	(3) study the proper role of the state in creating financing and investing and 
52.14 	providing incentives;
52.15 	(4) evaluate how state and federal programs, including the Farm Bill, can best work 
52.16 	together and leverage resources; and
52.17 	(5) report to the legislature before February 1 each year with recommendations as 
52.18 	to appropriations and results of past actions and projects.
52.19 		Subd. 4.Commissioner's duties. The commissioner of agriculture shall administer 
52.20 	this section.
52.21 		Subd. 5.Expiration. This section expires June 30, 2011.

52.22 	Sec. 2. [41A.11] TWENTY-FIVE BY TWENTY-FIVE GOAL.
52.23 	It is the goal of the state that no later than January 1, 2025, the state's agricultural, 
52.24 	forestry, and working land should provide from renewable resources not less than 25 
52.25 	percent of the total energy consumed in this state while continuing to produce safe, 
52.26 	abundant, and affordable food, feed, and fiber. 

52.27 	Sec. 3. Minnesota Statutes 2006, section 239.7911, subdivision 1, is amended to read:
52.28 		Subdivision 1.Petroleum replacement goal. The tiered petroleum replacement 
52.29 	goal of the state of Minnesota is that:
52.30 	(1) at least 20 percent of the liquid fuel sold in the state is derived from renewable 
52.31 	sources by December 31, 2015; and
52.32 	(2) at least 25 percent of the liquid fuel sold in the state is derived from renewable 
52.33 	sources by December 31, 2025.

53.1 	ARTICLE 4
53.2 	VETERANS AFFAIRS POLICY

53.3 	Section 1. [192.382] HONOR GUARDS.
53.4 	Upon the death of any person who has honorably served six or more years or is 
53.5 	in active service in the Minnesota National Guard, the adjutant general may activate 
53.6 	members to serve as an honor guard at the funeral. Members activated for service as honor 
53.7 	guards must be paid at the rate provided in section 192.49, subdivision 1 or 2.

53.8 	Sec. 2. [197.08] HEALTH SCREENING TEST FOR EXPOSURE TO 
53.9 	DEPLETED URANIUM.
53.10 		Subdivision 1.Definitions. (a) For purposes of this section, the following definitions 
53.11 	apply.
53.12 	(b) "Commissioner" means the commissioner of veterans affairs.
53.13 	(c) "Depleted uranium" means uranium containing less Uranium 235 than the 
53.14 	naturally occurring distribution of uranium isotopes.
53.15 	(d) "Eligible person" means a veteran or current member of the United States armed 
53.16 	forces, including the Minnesota National Guard and other reserves, who has served 
53.17 	in active military service as defined in section 190.05, subdivision 5, at any time since 
53.18 	August 2, 1990, and who is a Minnesota resident.
53.19 	(e) "Veteran" has the meaning given in section 197.447.
53.20 		Subd. 2.Health screening test. (a) The following eligible persons have a right to a 
53.21 	best practice health screening test for exposure to depleted uranium:
53.22 	(1) those who have been assigned a risk level I or II for depleted uranium exposure 
53.23 	by the person's branch of service;
53.24 	(2) those who can provide to the satisfaction of the commissioner evidence of 
53.25 	exposure equivalent to an assigned risk of level I or II; and
53.26 	(3) those who provide evidence to the satisfaction of the commissioner of a medical 
53.27 	diagnosis of serious debilitating symptoms of nonspecific origin following service in an 
53.28 	area where depleted uranium ammunition was expended.
53.29 	(b) The commissioner, in consultation with the commissioner of health, must 
53.30 	select a test that utilizes a bioassay procedure involving sensitive methods capable of 
53.31 	detecting depleted uranium at low levels and the use of equipment with the capacity to 
53.32 	discriminate between different radioisotopes in naturally occurring levels of uranium and 
53.33 	the characteristic ratio and marker for depleted uranium.
54.1 		Subd. 3.Commissioner to provide for test. The commissioner shall establish a 
54.2 	method for administering the health screening test described in subdivision 2.
54.3 		Subd. 4.Notification of availability to those eligible. The commissioner must 
54.4 	make reasonable efforts to inform all eligible persons of their potential right to the health 
54.5 	screening test described in subdivision 2.
54.6 		Subd. 5.Random sample study. (a) In addition to the testing required under 
54.7 	subdivision 2, the commissioner shall select a random sample containing ten percent of 
54.8 	the eligible members who as Minnesota residents have served for a period of 30 days 
54.9 	or more within Iraq or Afghanistan in support of contingency operations for Operation 
54.10 	Iraqi Freedom or Operation Enduring Freedom. Each eligible member who is selected 
54.11 	into the sample by the commissioner has the right to the same health screening test 
54.12 	as provided under subdivision 2. The commissioner must make a reasonable effort to 
54.13 	inform each selected person of that right, and must provide the person with a reasonable 
54.14 	opportunity to take the health screening test. The commissioner, acting in accordance with 
54.15 	the requirements of chapter 13, the Government Data Practices Act, must statistically 
54.16 	tabulate the results of the screening tests for the selected sample and upon request must 
54.17 	report those results to the chairs and ranking minority members of the senate and house of 
54.18 	representatives committees responsible for military and veterans affairs.
54.19 	(b) The adjutant general of the Minnesota National Guard, and the senior officer of 
54.20 	each military reserve organization located within Minnesota shall assist the commissioner 
54.21 	with the sampling task by providing to the commissioner in a timely manner a complete 
54.22 	listing of the names, unit designations, and most recent mailing addresses of their current 
54.23 	and previous members who as Minnesota residents have served for a period of 30 days 
54.24 	or more in active military service within Iraq or Afghanistan in support of contingency 
54.25 	operations for Operation Iraqi Freedom or Operation Enduring Freedom.

54.26 	EFFECTIVE DATE. This section is effective July 1, 2007.

54.27 	Sec. 3. [197.231] HONOR GUARDS.
54.28 	The commissioner of veterans affairs shall pay, within available funds and upon 
54.29 	request by a local unit of a congressionally chartered veterans organization or its auxiliary, 
54.30 	up to $50 to the local unit for each time that local unit provides an honor guard detail at 
54.31 	the funeral of a deceased veteran. The commissioner may give priority to local units that 
54.32 	do not have charitable gambling operations. If the local unit provides a student to play 
54.33 	"Taps," the local unit may pay some or all of the $50 to the student.

55.1 	Sec. 4. Minnesota Statutes 2006, section 197.75, is amended to read:
55.2 	197.75 EDUCATIONAL ASSISTANCE, WAR ORPHANSSURVIVORS AND 
55.3 	VETERANS.
55.4 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
55.5 	section.
55.6 	(b) "Commissioner" means the commissioner of veterans affairs.
55.7 	(c) "Deceased veteran" means a veteran who was a Minnesota resident within six 
55.8 	months of the time of the person's entry into the United States armed forces and who has 
55.9 	died as a result of that service, as determined by the United States Veterans Administration. 
55.10 	(d) "Eligible child" means a person who:
55.11 	(1) is the natural or adopted son or daughter of a deceased veteran; and
55.12 	(2) is a student making satisfactory academic progress at an eligible institution 
55.13 	of higher education.
55.14 	(e) "Eligible institution" means a postsecondary educational institution located in 
55.15 	this state that either (1) is operated by this state, or (2) is operated publicly or privately 
55.16 	and, as determined by the office, maintains academic standards substantially equivalent 
55.17 	to those of comparable institutions operated in this state.
55.18 	(f) "Eligible spouse" means the surviving spouse of a deceased veteran.
55.19 	(g) "Eligible veteran" means a veteran who:
55.20 	(1) is a student making satisfactory academic progress at an eligible institution 
55.21 	of higher education;
55.22 	(2) had Minnesota as the person's state of residence at the time of the person's 
55.23 	enlistment or any reenlistment into the United States armed forces, as shown by the 
55.24 	person's federal form DD-214 or other official documentation to the satisfaction of the 
55.25 	commissioner;
55.26 	(3) except for benefits under this section, has no remaining military or veteran-related 
55.27 	educational assistance benefits for which the person may have been entitled; and
55.28 	(4) while using the educational assistance authorized in this section, remains a 
55.29 	resident student as defined in section 136A.101, subdivision 8.
55.30 	(h) "Satisfactory academic progress" has the meaning given in section 136A.101, 
55.31 	subdivision 10.
55.32 	(i) "Student" has the meaning given in section 136A.101, subdivision 7.
55.33 	(j) "Veteran" has the meaning given in section 197.447.
55.34 		Subd. 2.Benefits; eligibility. (a) The commissioner of veterans affairs shall spend a 
55.35 	biennial appropriation for tuition of veterans, and for tuition, fees, board, room, books, and 
55.36 	supplies of the children of veterans who have died as a result of their service in the armed 
56.1 	forces of the United States as determined by the United States Veterans Administration 
56.2 	or other instrumentality of the United States, in the University of Minnesota, a state 
56.3 	university, a community college, a technical college, or any other university of higher 
56.4 	learning within the state accredited by the North Central Association of Colleges and 
56.5 	Secondary Schools, a law college approved by the Supreme Court, a nursing school 
56.6 	approved by the state Board of Nursing, or in a trade, business, or vocational school in 
56.7 	the state approved by the state Department of Education, or in a theological seminary, for 
56.8 	any course which such veteran or child may elect. Not more than $750 shall be expended 
56.9 	for the benefit of any individual veteran, and not more than $750 in any fiscal year shall 
56.10 	be expended for the benefit of any child under this section. No child of any veteran 
56.11 	shall make application for the benefits provided in this section unless the child resided 
56.12 	in Minnesota for at least two years immediately prior to the date of the application. to 
56.13 	provide an educational assistance stipend of $750 each year for each eligible child and 
56.14 	each eligible spouse, and a single payment of $750 for each eligible veteran. This stipend 
56.15 	is not available for any person who has attained a bachelor's or equivalent degree.
56.16 	Children of veterans eligible for benefits according to this section(b) Each eligible 
56.17 	child and each eligible spouse shall be admitted to state institutions of university grade
56.18 	any Minnesota public eligible institution free of tuition until they receivethe person has 
56.19 	attained a bachelorsbachelor's or equivalent degree.
56.20 	(c) Payments of benefits authorized under this section shall be made directly to the 
56.21 	institution in which the course of instruction is givenparticipating eligible institutions or to 
56.22 	the individual on forms prescribedeligible individuals, as determined by the commissioner.
56.23 		Subd. 2.Limitations. The benefits in subdivision 1 are not available to a veteran 
56.24 	who is entitled to the same or similar benefits under a law or regulation of the United 
56.25 	States, except that a veteran who has been eligible for and has used up the benefits the 
56.26 	veteran is entitled to under the laws of the United States is entitled to the benefits provided 
56.27 	for by subdivision 1.
56.28 		Subd. 3.Proof of eligibility. Approval for benefits under this section shall require 
56.29 	submission of the following evidence: application, proof of military service, and where 
56.30 	applicable, proof of residency and where applicable, a statement from the United States 
56.31 	Veterans Administration that the veteran has exhausted entitlement to federal educational 
56.32 	benefits through use thereof or that the veteran died of service connected disabilities. 
56.33 	Upon submission of satisfactory proof of eligibility, benefits shall be provided from the 
56.34 	date of application and notification of approval shall be sent to the educational institution 
56.35 	and applicant.
57.1 		Subd. 4.Reimbursement form. Reimbursement to such institution or eligible 
57.2 	individual authorized under subdivision 1 shall be on forms prescribed by The 
57.3 	commissioner shall establish policies and procedures for determining eligibility and 
57.4 	payment under this section.
57.5 		Subd. 5.Definition of veteran Participation by eligible institutions. The word 
57.6 	"veteran" as used in this section shall have the same meaning as defined in section 197.447
57.7 	except that it shall include service persons that died while on active duty.(a) Each 
57.8 	Minnesota public postsecondary institution must continue to participate in the educational 
57.9 	assistance program authorized in this section during both peacetime and times of war.
57.10 	(b) Any participating eligible institution not described in paragraph (a) may suspend 
57.11 	or terminate its participation in the program at the end of any academic semester or other 
57.12 	academic term.
57.13 		Subd. 6.Residence required. Veterans under this section shall have been a resident 
57.14 	of the state of Minnesota at the time of induction into the armed forces and six months 
57.15 	immediately preceding the induction.

57.16 	EFFECTIVE DATE. This section is effective July 1, 2007, and applies to 
57.17 	applications for coursework taken on or after that date.

57.18 	Sec. 5. Minnesota Statutes 2006, section 198.002, subdivision 2, is amended to read:
57.19 		Subd. 2.Membership. The board consists of nine voting members appointed by the 
57.20 	governor with the advice and consent of the senate. The members of the board shall fairly 
57.21 	represent the geographic areas of the state. The members are:
57.22 	(1) a chair, designated by the governor;
57.23 	(2) three public members experienced in policy formulation with professional 
57.24 	experience in health care delivery; and
57.25 	(3) at least five members experienced in policy formulation with professional 
57.26 	experience in health care delivery who are members of congressionally chartered veterans 
57.27 	organizations or their auxiliaries that have a statewide organizational structure and state 
57.28 	level officers in Minnesota.
57.29 	The commissioner of veterans affairs shall serve as an ex officio, nonvoting member 
57.30 	of the board. From each house of the legislature, the chair of the committee that deals 
57.31 	with veterans affairs or the chair's designee shall serve as an ex officio, nonvoting member 
57.32 	if that person is a veteran of the board.

57.33 	Sec. 6. Minnesota Statutes 2006, section 198.004, subdivision 1, is amended to read:
58.1 		Subdivision 1.Appointment. (a) The board shall appoint an executive director. The 
58.2 	executive director shall serve in the unclassified service at the pleasure of the board. The 
58.3 	executive director must be a resident of the state of Minnesota, a citizen of the United 
58.4 	States, and, except as provided in paragraph (b), a veteran as that term is defined in section 
58.5 	197.447. The executive director shall serve as secretary of the board. 
58.6 	(b) When selecting an executive director, the board shall give preference to qualified 
58.7 	applicants who are veterans by initially placing only the names of qualified applicants who 
58.8 	are veterans on the selection list for final consideration, and only if the list contains fewer 
58.9 	than three qualified applicants who are veterans shall the names of qualified applicants 
58.10 	who are not veterans be added to the list. The board shall then select the most qualified 
58.11 	applicant from the list. If at any point in the selection process the board concludes that 
58.12 	no applicant is sufficiently qualified for the director position, the board may reopen the 
58.13 	application process.

58.14 	Sec. 7. PSYCHOLOGICAL COUNSELING SERVICES REPORT.
 58.15 	By November 1, 2007, the commissioner of veterans affairs and the adjutant general 
58.16 	of the National Guard, in consultation with relevant policy personnel and professional 
58.17 	staff of the Minnesota Veterans Homes Board and the United States Department of 
58.18 	Veterans Affairs, shall jointly report to the chair and ranking minority member of each 
58.19 	committee in the senate and house of representatives with jurisdiction over the policy or 
58.20 	finance of veterans affairs and military affairs regarding the psychological status and 
58.21 	needs of soldiers and veterans returning to Minnesota after having served in support of 
58.22 	contingency operations for Operation Enduring Freedom and Operation Iraqi Freedom.
58.23 	The report must provide the best relevant insights into and advice concerning how 
58.24 	to most effectively provide the psychological support services determined to be needed 
58.25 	by those soldiers and veterans. The report shall also provide an overview and discussion 
58.26 	of the types of federal, state, and local mental health resources available to soldiers and 
58.27 	veterans throughout the state, with particular emphasis on the role and capabilities of 
58.28 	the mental health facility under planning by the Minnesota Veterans Homes Board in 
58.29 	Kandiyohi County.

58.30 	ARTICLE 5
58.31 	MILITARY AFFAIRS

58.32	Section 1. APPROPRIATIONS.
 	
58.33 	The sums shown in the columns marked "appropriations" are appropriated to the 
58.34 	agencies and for the purposes specified in this article. The appropriations are from the 
59.1 	general fund, or another named fund, and are available for the fiscal years indicated 
59.2 	for each purpose. The figures "2008" and "2009" used in this article mean that the 
59.3 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
59.4 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
59.5 	year 2009. "The biennium" is fiscal years 2008 and 2009. 

59.6				APPROPRIATIONS
	
59.7				Available for the Year
	
59.8				Ending June 30
	
59.9					2008
		2009

59.10	Sec. 2. MILITARY AFFAIRS

59.11	Subdivision 1.Total Appropriation
 	$
	21,814,000
	$
	20,123,000

59.12	Appropriations by Fund
	
59.13		2008
	2009
	
59.14	General
	21,476,000
	19,785,000
	
59.15	Special Revenue
	338,000
	338,000
	
59.16 	The amounts that may be spent for each 
59.17 	purpose are specified in the following 
59.18 	subdivisions.

59.19	Subd. 2.Maintenance of Training Facilities
 		7,504,000
		7,448,000
	
59.20 	$185,000 the first year is to pay special 
59.21 	assessments levied against state property. 
59.22 	This is a onetime appropriation.

59.23	Subd. 3.General Support
 		4,101,000
		2,464,000

59.24	Appropriations by Fund
	
59.25	General
	3,763,000
	2,126,000
	
59.26	Special Revenue
	338,000
	338,000
	
59.27 	(a) $1,500,000 the first year is for the 
59.28 	Minnesota National Guard reintegration 
59.29 	program. This appropriation is available 
59.30 	until spent.
59.31 	(b) $275,000 the first year and $285,000 the 
59.32 	second year are for additional staffing.
59.33 	(c) $338,000 each year is from the account 
59.34 	in the special revenue fund established in 
60.1 	Minnesota Statutes, section 190.19, for 
60.2 	grants under that section.
60.3 	(d) $150,000 the first year is for predesign 
60.4 	and design of a new facility for the Starbase 
60.5 	Minnesota program. This appropriation is 
60.6 	available until spent.
60.7 	(e) $25,000 the first year is for a longitudinal 
60.8 	study measuring improvement in academic 
60.9 	achievement as a result of participation in the 
60.10 	Starbase program.

60.11	Subd. 4.Enlistment Incentives
 		10,209,000
		10,211,000
	
60.12 	If appropriations for either year of the 
60.13 	biennium are insufficient, the appropriation 
60.14 	from the other year is available. The 
60.15 	appropriations for enlistment incentives are 
60.16 	available until expended.

60.17 	Sec. 3. [192.382] HONOR GUARDS.
60.18 	Upon the death of any person who has honorably served six or more years or is 
60.19 	in active service in the Minnesota National Guard, the adjutant general may activate 
60.20 	members to serve as an honor guard at the funeral. Members activated for service as honor 
60.21 	guards must be paid at the rate provided in section 192.49, subdivision 1 or 2.

60.22 	Sec. 4. [192.515] NATIONAL GUARD NONAPPROPRIATED FUND 
60.23 	INSTRUMENTALITY.
60.24 		Subdivision 1.Establishment. The adjutant general may:
60.25 	(a) establish a Minnesota National Guard nonappropriated fund instrumentality to 
60.26 	create, operate, and maintain morale, welfare, and recreation facilities and activities at 
60.27 	Camp Ripley and other property owned, leased, or otherwise controlled by the Minnesota 
60.28 	Nation Guard; and
60.29 	(b) create a board to manage the fund established under paragraph (a) and delegate 
60.30 	to the board the adjutant general's authority under this section.
60.31 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
60.32 	(b) "MNG NAFI" means the Minnesota National Guard nonappropriated fund 
60.33 	instrumentality.
61.1 	(c) "Morale, welfare, and recreation" refers to a facility or activity intended to 
61.2 	provide recreational opportunities, promote unit and individual morale, and generally 
61.3 	improve the welfare of Minnesota National Guard personnel at Camp Ripley or other 
61.4 	properties owned, leased, or otherwise controlled by the Minnesota National Guard. It 
61.5 	does not include facilities or services provided by the Army and Air Force Exchange 
61.6 	Service. It also does not include facilities or services provided by other instrumentalities 
61.7 	through the use of appropriated funds.
61.8 		Subd. 3.Use. The adjutant general may authorize Minnesota National Guard lands 
61.9 	and facilities to be used in support of morale, welfare, and recreation activities under this 
61.10 	section. That use must not interfere with military operations or training.
61.11 		Subd. 4.Funds. (a) Except as otherwise specifically authorized in this section, 
61.12 	no general fund money or other state funds may be used for the purposes authorized 
61.13 	under this section.
61.14 	(b) The MNG NAFI is authorized to accept donations or gifts from public or private 
61.15 	sources for purposes authorized under this section, including, but not limited to, federal 
61.16 	funds made available to the National Guard for related activities and money received from 
61.17 	recycling activities to the extent authorized by federal regulation.
61.18 	(c) Money received from operation of activities under this section, including, but 
61.19 	not limited to, user fees and rental charges must be deposited and managed consistent 
61.20 	with this subdivision.
61.21 	(d) The adjutant general may transfer funds from any existing morale, welfare, or 
61.22 	recreation fund to the MNG NAFI.
61.23 	(e) Money received by the MNG NAFI must be deposited in the Minnesota National 
61.24 	Guard morale, welfare, and recreation fund.
61.25 	(f) Accounts or funds created under this section must be audited annually by officers 
61.26 	of the military forces detailed by the adjutant general as military auditors.
61.27 		Subd. 5.Rules. The adjutant general must adopt rules for the establishment, 
61.28 	management, and operation of the MNG NAFI consistent with this section.

61.29 	Sec. 5. BOND SALE AUTHORIZATION REDUCED.
 61.30 	The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, 
61.31 	is reduced by $150,000.

61.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

61.33 	Sec. 6.  REPEALER.
 61.34 	Laws 2006, chapter 258, section 14, subdivision 6, is repealed.