1.1 	A bill for an act
1.2 	relating to appropriations; appropriating money for agriculture, veterans affairs, 
1.3 	and military affairs; modifying disposition of certain revenue and funds; 
1.4 	modifying certain grant and loan requirements; modifying use of Minnesota 
1.5 	grown label; modifying and creating certain funds and accounts; eliminating 
1.6 	the aquatic pest control license; modifying permit and safeguard requirements; 
1.7 	modifying and establishing certain fees and surcharges; creating a food safety 
1.8 	and defense task force; requiring certain studies and reports; providing for 
1.9 	NextGen energy; changing certain provisions related to veterans and members 
1.10 	of the national guard and reserves;amending Minnesota Statutes 2006, sections 
1.11 	3.737, subdivision 1; 3.7371, subdivision 3; 17.03, subdivision 3; 17.101, 
1.12 	subdivision 2; 17.102, subdivisions 1, 3, 4, by adding subdivisions; 17.117, 
1.13 	subdivisions 1, 4, 5a, 5b, 11; 17.982, subdivision 1; 17.983, subdivision 1; 
1.14 	18B.065, subdivisions 1, 2a; 18B.26, subdivision 3; 18B.33, subdivision 1; 
1.15 	18B.34, subdivision 1; 18B.345; 18C.305, by adding a subdivision; 18E.02, 
1.16 	subdivisions 1, 5, by adding a subdivision; 18E.03, subdivision 4; 25.341, 
1.17 	subdivision 1; 28A.04, subdivision 1; 28A.06; 28A.082, subdivision 1; 32.21, 
1.18 	subdivision 4; 32.212; 32.394, subdivision 4; 32.415; 41B.043, subdivisions 2, 
1.19 	3, 4; 41B.047; 41B.055; 41B.06; 41C.05, subdivision 2; 116.0714; 116O.09, 
1.20 	subdivision 2; 197.75; 198.002, subdivision 2; 198.004, subdivision 1; 239.7911, 
1.21 	subdivision 1; 327.201; 343.10; proposing coding for new law in Minnesota 
1.22 	Statutes, chapters 18C; 28A; 35; 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; 41A.09, subdivision 9; 41B.043, subdivision 1a; Laws 
1.25 	2006, chapter 258, section 14, subdivision 6; Minnesota Rules, parts 1705.0840; 
1.26 	1705.0850; 1705.0860; 1705.0870; 1705.0880; 1705.0890; 1705.0900; 
1.27 	1705.0910; 1705.0920; 1705.0930; 1705.0940; 1705.0950; 1705.0960; 
1.28 	1705.0970; 1705.0980; 1705.0990; 1705.1000; 1705.1010; 1705.1020; 
1.29 	1705.1030; 1705.1040; 1705.1050; 1705.1060; 1705.1070; 1705.1080; 
1.30 	1705.1086; 1705.1087; 1705.1088.
1.31 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.32 	ARTICLE 1
1.33 	AGRICULTURE

1.34	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
2.1 	The amounts shown in this section summarize direct appropriations, by fund, made 
2.2 	in this article.

2.3			2008
		2009
		Total
	
2.4	General
	$
	57,132,000
	$
	47,159,000
	$
	104,291,000
	
2.5	Remediation
		388,000
		388,000
		776,000
	
2.6	Total
	$
	57,520,000
	$
	47,547,000
	$
	105,067,000

2.7	Sec. 2. AGRICULTURE APPROPRIATIONS.
 	
2.8 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.9 	agencies and for the purposes specified in this article.  The appropriations are from the 
2.10 	general fund, or another named fund, and are available for the fiscal years indicated 
2.11 	for each purpose.  The figures "2008" and "2009" used in this article mean that the 
2.12 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
2.13 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
2.14 	year 2009. "The biennium" is fiscal years 2008 and 2009. 

2.15				APPROPRIATIONS
	
2.16				Available for the Year
	
2.17				Ending June 30
	
2.18					2008
		2009

2.19	Sec. 3. DEPARTMENT OF AGRICULTURE

2.20	Subdivision 1.Total Appropriation
 	$
	 50,846,000
	$
	40,992,000

2.21	Appropriations by Fund
	
2.22		2008
	2009
	
2.23	General
	50,458,000
	40,604,000
	
2.24	Remediation
	388,000
	388,000
	
2.25 	The amounts that may be spent for each 
2.26 	purpose are specified in the following 
2.27 	subdivisions.

2.28	Subd. 2.Protection Services
 		15,043,000
		13,916,000

2.29	Appropriations by Fund
	
2.30	General
	14,655,000
	13,528,000
	
2.31	Remediation
	388,000
	388,000
	
2.32 	$388,000 the first year and $388,000 the 
2.33 	second year are from the remediation fund 
2.34 	for administrative funding for the voluntary 
2.35 	cleanup program.
3.1 	$1,100,000 the first year is for research, 
3.2 	evaluation, and effectiveness monitoring of 
3.3 	agricultural practices in restoring impaired 
3.4 	waters. The funding must not be used to 
3.5 	hire additional employees to perform these 
3.6 	activities. This appropriation is available 
3.7 	until spent.
3.8 	$400,000 the first year is for clean 
3.9 	water legacy technical assistance in the 
3.10 	development of total maximum daily load 
3.11 	(TMDL) plans. This appropriation is 
3.12 	available until spent.
3.13 	$263,000 the first year and $267,000 the 
3.14 	second year are for additional invasive 
3.15 	species control activities.
3.16 	$90,000 the first year and $92,000 the second 
3.17 	year are for additional meat inspection 
3.18 	activities.
3.19 	$205,000 the first year and $205,000 the 
3.20 	second year are for electronic inspection 
3.21 	system costs for dairy and food inspections.
3.22 	$100,000 the first year and $100,000 the 
3.23 	second year are for emergency planning 
3.24 	activities.
3.25 	$141,000 the first year and $143,000 the 
3.26 	second year are for livestock premise 
3.27 	identification activities that increase the 
3.28 	state's ability to respond to animal health 
3.29 	emergencies. The commissioner shall not 
3.30 	require livestock premise identification for 
3.31 	county and district agricultural societies and 
3.32 	associations and small animal shows.
3.33 	The commissioner shall convene a task force 
3.34 	to identify, evaluate, and recommend options 
4.1 	for new or additional agricultural or other 
4.2 	trade-related uses of the Port of Duluth. The 
4.3 	task force shall consist of representatives 
4.4 	of the Departments of Agriculture, Natural 
4.5 	Resources, and Employment and Economic 
4.6 	Development as well as the Duluth Port 
4.7 	Authority, the city of Duluth, and other 
4.8 	stakeholders appointed by the commissioner, 
4.9 	including but not limited to, representatives 
4.10 	of the state's commodity trade, transportation, 
4.11 	and storage interests. No later than March 1, 
4.12 	2008, the commissioner shall report to the 
4.13 	chairs of the house and senate committees 
4.14 	with jurisdiction over agriculture finance.

4.15
4.16	Subd. 3.Agricultural Marketing and 
Development
 		8,547,000
		5,157,000
	
4.17 	$186,000 the first year and $186,000 the 
4.18 	second year are for transfer to the Minnesota 
4.19 	grown account and may be used as grants 
4.20 	for Minnesota grown promotion under 
4.21 	Minnesota Statutes, section 17.102. Grants 
4.22 	may be made for one year. Notwithstanding 
4.23 	Minnesota Statutes, section 16A.28, the 
4.24 	appropriations encumbered under contract on 
4.25 	or before June 30, 2009, for Minnesota grown 
4.26 	grants in this paragraph are available until 
4.27 	June 30, 2011. $50,000 of the appropriation 
4.28 	in each year is for efforts that identify 
4.29 	and promote Minnesota grown products 
4.30 	in retail food establishments including but 
4.31 	not limited to restaurants, grocery stores, 
4.32 	and convenience stores. The balance in the 
4.33 	Minnesota grown matching account in the 
4.34 	agricultural fund is canceled to the Minnesota 
4.35 	grown account in the agricultural fund and 
5.1 	the Minnesota grown matching account is 
5.2 	abolished.
5.3 	$160,000 the first year and $160,000 the 
5.4 	second year are for grants to farmers for 
5.5 	demonstration projects involving sustainable 
5.6 	agriculture as authorized in Minnesota 
5.7 	Statutes, section 17.116. Of the amount 
5.8 	for grants, up to $20,000 may be used for 
5.9 	dissemination of information about the 
5.10 	demonstration projects. Notwithstanding 
5.11 	Minnesota Statutes, section 16A.28, the 
5.12 	appropriations encumbered under contract 
5.13 	on or before June 30, 2009, for sustainable 
5.14 	agriculture grants in this paragraph are 
5.15 	available until June 30, 2011.
5.16 	$100,000 the first year and $100,000 
5.17 	the second year are to provide training 
5.18 	and technical assistance to county and 
5.19 	town officials relating to livestock siting 
5.20 	issues and local zoning and land use 
5.21 	planning, including a checklist template that 
5.22 	would clarify the federal, state, and local 
5.23 	government requirements for consideration 
5.24 	of an animal agriculture modernization 
5.25 	or expansion project. In developing 
5.26 	the training and technical assistance 
5.27 	program, the commissioner shall seek 
5.28 	guidance, advice, and support of livestock 
5.29 	producer organizations, general agricultural 
5.30 	organizations, local government associations, 
5.31 	academic institutions, other government 
5.32 	agencies, and others with expertise in land 
5.33 	use and agriculture.
6.1 	$103,000 the first year and $106,000 the 
6.2 	second year are for additional integrated pest 
6.3 	management activities.
6.4 	$2,500,000 the first year is for the agricultural 
6.5 	best management practices loan program. At 
6.6 	least $2,000,000 is available for pass-through 
6.7 	to local governments and lenders for 
6.8 	low-interest loans.
6.9 	$1,000,000 the first year is for the agricultural 
6.10 	best management practices loan program for 
6.11 	capital equipment loans for persons using 
6.12 	native, perennial cropping systems for energy 
6.13 	or seed production. This appropriation is 
6.14 	available until spent.
6.15 	$100,000 the first year and $100,000 the 
6.16 	second year are for annual cost-share 
6.17 	payments to resident farmers or persons 
6.18 	who sell, process, or package agricultural 
6.19 	products in this state for the costs of organic 
6.20 	certification. Annual cost-share payments 
6.21 	per farmer must be two-thirds of the cost 
6.22 	of the certification or $350, whichever is 
6.23 	less. In any year that a resident farmer or 
6.24 	person who sells, processes, or packages 
6.25 	agricultural products in this state receives 
6.26 	a federal organic certification cost-share 
6.27 	payment, that resident farmer or person is 
6.28 	not eligible for state cost-share payments. 
6.29 	A certified farmer is eligible to receive 
6.30 	annual certification cost-share payments for 
6.31 	up to five years. $15,000 each year is for 
6.32 	organic market and program development. 
6.33 	The commissioner may allocate any excess 
6.34 	appropriation in either fiscal year for organic 
6.35 	producer education efforts, assistance for 
7.1 	persons transitioning from conventional 
7.2 	to organic agriculture, or sustainable 
7.3 	agriculture demonstration grants authorized 
7.4 	under Minnesota Statutes, section 17.116, 
7.5 	and pertaining to organic research or 
7.6 	demonstration. Any unencumbered balance 
7.7 	does not cancel at the end of the first year 
7.8 	and is available for the second year.

7.97.10
	Subd. 4.Bioenergy and Value-Added 
Agricultural Products
 		19,918,000
		15,168,000
	
7.11 	$15,168,000 the first year and $15,168,000 
7.12 	the second year are for ethanol producer 
7.13 	payments under Minnesota Statutes, section 
7.14 	41A.09. If the total amount for which all 
7.15 	producers are eligible in a quarter exceeds 
7.16 	the amount available for payments, the 
7.17 	commissioner shall make payments on a 
7.18 	pro rata basis. If the appropriation exceeds 
7.19 	the total amount for which all producers 
7.20 	are eligible in a fiscal year for scheduled 
7.21 	payments and for deficiencies in payments 
7.22 	during previous fiscal years, the balance 
7.23 	in the appropriation is available to the 
7.24 	commissioner for value-added agricultural 
7.25 	programs including the value-added 
7.26 	agricultural product processing and 
7.27 	marketing grant program under Minnesota 
7.28 	Statutes, section 17.101, subdivision 5. The 
7.29 	appropriation remains available until spent.
7.30 	$3,000,000 the first year is for grants to 
7.31 	bioenergy projects. The NextGen Energy 
7.32 	Board shall make recommendations to 
7.33 	the commissioner on grants for owners of 
7.34 	Minnesota facilities producing bioenergy, 
7.35 	organizations that provide for on-station, 
7.36 	on-farm field scale research and outreach to 
8.1 	develop and test the agronomic and economic 
8.2 	requirements of diverse stands of prairie 
8.3 	plants and other perennials for bioenergy 
8.4 	systems, or certain nongovernmental 
8.5 	entities. For the purposes of this paragraph, 
8.6 	"bioenergy" includes transportation fuels 
8.7 	derived from cellulosic material as well as 
8.8 	the generation of energy for commercial heat, 
8.9 	industrial process heat, or electrical power 
8.10 	from cellulosic material via gasification 
8.11 	or other processes. The board must give 
8.12 	priority to a bioenergy facility that is at 
8.13 	least 60 percent owned and controlled by 
8.14 	farmers, as defined in Minnesota Statutes, 
8.15 	section 500.24, subdivision 2, paragraph 
8.16 	(n), or natural persons residing in the 
8.17 	county or counties contiguous to where the 
8.18 	facility is located. Grants are limited to 50 
8.19 	percent of the cost of research, technical 
8.20 	assistance, or equipment related to bioenergy 
8.21 	production or $500,000, whichever is less. 
8.22 	Grants to nongovernmental entities for the 
8.23 	development of business plans and structures 
8.24 	related to community ownership of eligible 
8.25 	bioenergy facilities together may not exceed 
8.26 	$150,000. The board shall make a good 
8.27 	faith effort to select projects that have 
8.28 	merit and when taken together represent a 
8.29 	variety of bioenergy technologies, biomass 
8.30 	feedstocks, and geographic regions of the 
8.31 	state. Projects must have a qualified engineer 
8.32 	certification on the technology and fuel 
8.33 	source. Grantees shall provide reports at 
8.34 	the request of the commissioner and must 
8.35 	actively participate in the Agricultural 
8.36 	Utilization Research Institute's Renewable 
9.1 	Energy Roundtable. No later than February 
9.2 	1, 2009, the commissioner shall report on 
9.3 	the projects funded under this appropriation 
9.4 	to the house and senate committees with 
9.5 	jurisdiction over agriculture finance. The 
9.6 	commissioner's costs in administering the 
9.7 	program may be paid from the appropriation.
9.8 	$350,000 the first year is for grants to 
9.9 	the Minnesota Institute for Sustainable 
9.10 	Agriculture at the University of Minnesota 
9.11 	to provide funds for on-station and 
9.12 	on-farm field scale research and outreach 
9.13 	to develop and test the agronomic and 
9.14 	economic requirements of diverse stands 
9.15 	of prairie plants and other perennials 
9.16 	for bioenergy systems including, but not 
9.17 	limited to, multiple species selection and 
9.18 	establishment, ecological management 
9.19 	between planting and harvest, harvest 
9.20 	technologies, financial and agronomic 
9.21 	risk management, farmer goal setting and 
9.22 	adoption of technologies, integration of 
9.23 	wildlife habitat into management approaches, 
9.24 	evaluation of carbon and other benefits, and 
9.25 	robust policies needed to induce farmer 
9.26 	conversion on marginal lands.
9.27 	$200,000 the first year is for a grant to the 
9.28 	Minnesota Turf Seed Council for basic 
9.29 	and applied agronomic research on native 
9.30 	plants, including plant breeding, nutrient 
9.31 	management, pest management, disease 
9.32 	management, yield, and viability. The grant 
9.33 	recipient may subcontract with a qualified 
9.34 	third party for some or all of the basic 
9.35 	or applied research. The grant recipient 
9.36 	must actively participate in the Agricultural 
10.1 	Utilization Research Institute's Renewable 
10.2 	Energy Roundtable and no later than 
10.3 	February 1, 2009, must report to the house 
10.4 	and senate committees with jurisdiction 
10.5 	over agriculture finance. This is a onetime 
10.6 	appropriation and is available until spent.
10.7 	$200,000 the first year is for a grant to a joint 
10.8 	venture combined heat and power energy 
10.9 	facility located in Scott or LeSueur County 
10.10 	for the creation of a centrally located biomass 
10.11 	fuel supply depot with the capability of 
10.12 	unloading, processing, testing, scaling, and 
10.13 	storing renewable biomass fuels. The grant 
10.14 	must be matched by at least $3 of nonstate 
10.15 	funds for every $1 of state funds. The grant 
10.16 	recipient must actively participate in the 
10.17 	Agricultural Utilization Research Institute's 
10.18 	Renewable Energy Roundtable and no 
10.19 	later than February 1, 2009, must report 
10.20 	to the house and senate committees with 
10.21 	jurisdiction over agriculture finance. This is 
10.22 	a onetime appropriation and is available until 
10.23 	spent.
10.24 	$300,000 the first year is for a grant to the 
10.25 	Bois Forte Band of Chippewa for a feasibility 
10.26 	study of a renewable energy biofuels 
10.27 	demonstration facility on the Bois Forte 
10.28 	Reservation in St. Louis and Koochiching 
10.29 	Counties. The grant shall be used by the Bois 
10.30 	Forte Band to conduct a detailed feasibility 
10.31 	study of the economic and technical viability 
10.32 	of developing a multistream renewable 
10.33 	energy biofuels demonstration facility 
10.34 	on Bois Forte Reservation land to utilize 
10.35 	existing forest resources, woody biomass, 
10.36 	and cellulosic material to produce biofuels or 
11.1 	bioenergy. The grant recipient must actively 
11.2 	participate in the Agricultural Utilization 
11.3 	Research Institute's Renewable Energy 
11.4 	Roundtable and no later than February 1, 
11.5 	2009, must report to the house and senate 
11.6 	committees with jurisdiction over agriculture 
11.7 	finance. This is a onetime appropriation and 
11.8 	is available until spent.
11.9 	$300,000 the first year is for a grant to 
11.10 	the White Earth Band of Chippewa for a 
11.11 	feasibility study of a renewable energy 
11.12 	biofuels production, research, and production 
11.13 	facility on the White Earth Reservation in 
11.14 	Mahnomen County. The grant must be used 
11.15 	by the White Earth Band and the University 
11.16 	of Minnesota to conduct a detailed feasibility 
11.17 	study of the economic and technical viability 
11.18 	of (1) developing a multistream renewable 
11.19 	energy biofuels demonstration facility on 
11.20 	White Earth Reservation land to utilize 
11.21 	existing forest resources, woody biomass, 
11.22 	and cellulosic material to produce biofuels or 
11.23 	bioenergy, and (2) developing, harvesting, 
11.24 	and marketing native prairie plants and seeds 
11.25 	for bioenergy production. The grant recipient 
11.26 	must actively participate in the Agricultural 
11.27 	Utilization Research Institute's Renewable 
11.28 	Energy Roundtable and no later than 
11.29 	February 1, 2009, must report to the house 
11.30 	and senate committees with jurisdiction 
11.31 	over agriculture finance. This is a onetime 
11.32 	appropriation and is available until spent.
11.33 	$200,000 the first year is for a grant to the Elk 
11.34 	River Economic Development Authority for 
11.35 	upfront engineering and a feasibility study 
11.36 	of the Elk River renewable fuels facility. 
12.1 	The facility must use a plasma gasification 
12.2 	process to convert primarily cellulosic 
12.3 	material, but may also use plastics and other 
12.4 	components from municipal solid waste, as 
12.5 	feedstock for the production of methanol 
12.6 	for use in biodiesel production facilities. 
12.7 	Any unencumbered balance in fiscal year 
12.8 	2008 does not cancel but is available for 
12.9 	fiscal year 2009. Notwithstanding Minnesota 
12.10 	Statutes, section 16A.285, the agency must 
12.11 	not transfer this appropriation. The grant 
12.12 	recipient must actively participate in the 
12.13 	Agricultural Utilization Research Institute's 
12.14 	Renewable Energy Roundtable and no 
12.15 	later than February 1, 2009, must report 
12.16 	to the house and senate committees with 
12.17 	jurisdiction over agriculture finance. This is 
12.18 	a onetime appropriation and is available until 
12.19 	spent.
12.20 	$200,000 the first year is for a grant to 
12.21 	Chisago County to conduct a detailed 
12.22 	feasibility study of the economic and 
12.23 	technical viability of developing a 
12.24 	multistream renewable energy biofuels 
12.25 	demonstration facility in Chisago, Isanti, 
12.26 	or Pine County to utilize existing forest 
12.27 	resources, woody biomass, and cellulosic 
12.28 	material to produce biofuels or bioenergy. 
12.29 	Chisago County may expend funds to Isanti 
12.30 	and Pine Counties and the University of 
12.31 	Minnesota for any costs incurred as part 
12.32 	of the study. The feasibility study must 
12.33 	consider the capacity of: (1) the seed bank 
12.34 	at Wild River State Park to expand the 
12.35 	existing prairie grass, woody biomass, and 
12.36 	cellulosic material resources in Chisago, 
13.1 	Isanti, and Pine Counties; (2) willing and 
13.2 	interested landowners in Chisago, Isanti, and 
13.3 	Pine Counties to grow cellulosic materials; 
13.4 	and (3) the Minnesota Conservation Corps, 
13.5 	the sentence to serve program, and other 
13.6 	existing workforce programs in east central 
13.7 	Minnesota to contribute labor to these efforts. 
13.8 	The grant recipient must actively participate 
13.9 	in the Agricultural Utilization Research 
13.10 	Institute's Renewable Energy Roundtable and 
13.11 	no later than February 1, 2009, must report 
13.12 	to the house and senate committees with 
13.13 	jurisdiction over agriculture finance. This is 
13.14 	a onetime appropriation and is available until 
13.15 	spent.

13.16
13.17	Subd. 5.Administration and Financial 
Assistance
 		7,338,000
		6,751,000
	
13.18 	$1,005,000 the first year and $1,005,000 
13.19 	the second year are for continuation of 
13.20 	the dairy development and profitability 
13.21 	enhancement and dairy business planning 
13.22 	grant programs established under Laws 1997, 
13.23 	chapter 216, section 7, subdivision 2, and 
13.24 	Laws 2001, First Special Session chapter 2, 
13.25 	section 9, subdivision 2 . The commissioner 
13.26 	may allocate the available sums among 
13.27 	permissible activities, including efforts to 
13.28 	improve the quality of milk produced in the 
13.29 	state in the proportions that the commissioner 
13.30 	deems most beneficial to Minnesota's dairy 
13.31 	farmers. The commissioner must submit a 
13.32 	work plan detailing plans for expenditures 
13.33 	under this program to the chairs of the 
13.34 	house and senate committees dealing with 
13.35 	agricultural policy and budget on or before 
13.36 	the start of each fiscal year. If significant 
14.1 	changes are made to the plans in the course 
14.2 	of the year, the commissioner must notify the 
14.3 	chairs.
14.4 	$50,000 the first year and $50,000 the 
14.5 	second year are for the Northern Crops 
14.6 	Institute. These appropriations may be spent 
14.7 	to purchase equipment.
14.8 	$19,000 the first year and $19,000 the 
14.9 	second year are for a grant to the Minnesota 
14.10 	Livestock Breeders Association.
14.11 	$250,000 the first year and $250,000 the 
14.12 	second year are for grants to the Minnesota 
14.13 	Agricultural Education Leadership Council 
14.14 	for programs of the council under Minnesota 
14.15 	Statutes, chapter 41D.
14.16 	$600,000 the first year is for grants for 
14.17 	fertilizer research as awarded by the 
14.18 	Minnesota Agricultural Fertilizer Research 
14.19 	and Education Council under Minnesota 
14.20 	Statutes, section 18C.71. No later than 
14.21 	February 1, 2009, the commissioner shall 
14.22 	report to the house and senate committees 
14.23 	with jurisdiction over agriculture finance. 
14.24 	The report must include the progress and 
14.25 	outcome of funded projects as well as the 
14.26 	sentiment of the council concerning the need 
14.27 	for additional research funded through an 
14.28 	industry checkoff fee.
14.29 	$465,000 the first year and $465,000 the 
14.30 	second year are for payments to county and 
14.31 	district agricultural societies and associations 
14.32 	under Minnesota Statutes, section 38.02, 
14.33 	subdivision 1. Aid payments to county and 
14.34 	district agricultural societies and associations 
14.35 	shall be disbursed not later than July 15 of 
15.1 	each year. These payments are the amount of 
15.2 	aid owed by the state for an annual fair held 
15.3 	in the previous calendar year.
15.4 	$65,000 the first year and $65,000 the second 
15.5 	year are for annual grants to the Minnesota 
15.6 	Turf Seed Council for basic and applied 
15.7 	research on the improved production of 
15.8 	forage and turf seed related to new and 
15.9 	improved varieties. The grant recipient may 
15.10 	subcontract with a qualified third party for 
15.11 	some or all of the basic and applied research.
15.12 	$500,000 the first year and $500,000 the 
15.13 	second year are for grants to Second Harvest 
15.14 	Heartland on behalf of Minnesota's six 
15.15 	Second Harvest food banks for the purchase 
15.16 	of milk for distribution to Minnesota's food 
15.17 	shelves and other charitable organizations 
15.18 	that are eligible to receive food from the food 
15.19 	banks. Milk purchased under the grants must 
15.20 	be acquired from Minnesota milk processors 
15.21 	and based on low-cost bids. The milk must be 
15.22 	allocated to each Second Harvest food bank 
15.23 	serving Minnesota according to the formula 
15.24 	used in the distribution of United States 
15.25 	Department of Agriculture commodities 
15.26 	under The Emergency Food Assistance 
15.27 	Program (TEFAP). Second Harvest 
15.28 	Heartland must submit quarterly reports 
15.29 	to the commissioner on forms prescribed 
15.30 	by the commissioner. The reports must 
15.31 	include, but are not limited to, information 
15.32 	on the expenditure of funds, the amount 
15.33 	of milk purchased, and the organizations 
15.34 	to which the milk was distributed. Second 
15.35 	Harvest Heartland may enter into contracts 
15.36 	or agreements with food banks for shared 
16.1 	funding or reimbursement of the direct 
16.2 	purchase of milk. Each food bank receiving 
16.3 	money from this appropriation may use up to 
16.4 	two percent of the grant for administrative 
16.5 	expenses.
16.6 	$100,000 the first year and $100,000 the 
16.7 	second year are for transfer to the Board of 
16.8 	Trustees of the Minnesota State Colleges and 
16.9 	Universities for mental health counseling 
16.10 	support to farm families and business 
16.11 	operators through farm business management 
16.12 	programs at Central Lakes College and 
16.13 	Ridgewater College.
16.14 	$18,000 the first year and $18,000 the 
16.15 	second year are for grants to the Minnesota 
16.16 	Horticultural Society.
16.17 	$50,000 is for a grant to the University of 
16.18 	Minnesota, Department of Horticultural 
16.19 	Science, Enology Laboratory, to upgrade 
16.20 	and purchase instrumentation to allow 
16.21 	rapid and accurate measurement of enology 
16.22 	components. This is a onetime appropriation 
16.23 	and is available until expended.

16.24	Sec. 4. BOARD OF ANIMAL HEALTH
 	$
	3,574,000
	$
	3,455,000
	
16.25 	$448,000 the first year and $363,000 the 
16.26 	second year are for bovine tuberculosis 
16.27 	eradication and surveillance in cattle herds. 
16.28 	Of this amount, $159,000 is permanent.
16.29 	$100,000 the first year is for reimbursements 
16.30 	under Minnesota Statutes, section 35.085. 
16.31 	This appropriation is available until spent.
16.32 	$200,000 the first year and $200,000 the 
16.33 	second year are for a program to control 
17.1 	paratuberculosis (Johne's disease) in 
17.2 	domestic bovine herds.
17.3 	$80,000 the first year and $80,000 the second 
17.4 	year are for a program to investigate the 
17.5 	avian pneumovirus disease and to identify 
17.6 	the infected flocks. This appropriation must 
17.7 	be matched on a dollar-for-dollar or in-kind 
17.8 	basis with nonstate sources and is in addition 
17.9 	to money currently designated for turkey 
17.10 	disease research. Costs of blood sample 
17.11 	collection, handling, and transportation, 
17.12 	in addition to costs associated with early 
17.13 	diagnosis tests and the expenses of vaccine 
17.14 	research trials, may be credited to the match.
17.15 	$400,000 the first year and $400,000 the 
17.16 	second year are for the purposes of cervidae 
17.17 	inspection as authorized in Minnesota 
17.18 	Statutes, section 35.155.

17.19
17.20	Sec. 5. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	3,100,000
	$
	3,100,000
	
17.21 	$700,000 the first year and $700,000 the 
17.22 	second year are for technical assistance 
17.23 	and technology transfer to bioenergy crop 
17.24 	producers and users.
17.25 	From the appropriation in both years, the 
17.26 	Agricultural Utilization Research Institute 
17.27 	must continue to monitor and coordinate 
17.28 	renewable energy efforts and opportunities 
17.29 	in the state via the Renewable Energy 
17.30 	Roundtable, the Center for Producer-Owned 
17.31 	Energy, and related initiatives. In addition, 
17.32 	as part of the Renewable Energy Roundtable, 
17.33 	the institute shall convene a Bioenergy 
17.34 	Advisory Committee consisting of, but not 
17.35 	limited to, representatives of the state's 
18.1 	agriculture, natural resources, forestry, and 
18.2 	rural economic development communities 
18.3 	and shall present this group's viewpoints 
18.4 	as part of the institute's participation in the 
18.5 	NextGen Energy Board created in Minnesota 
18.6 	Statutes, section 41A.10.

18.7 	Sec. 6. Minnesota Statutes 2006, section 3.737, subdivision 1, is amended to read:
18.8 		Subdivision 1.Compensation required. (a) Notwithstanding section 3.736, 
18.9 	subdivision 3, paragraph (e), or any other law, a livestock owner shall be compensated 
18.10 	by the commissioner of agriculture for livestock that is destroyed by a gray wolf or is 
18.11 	so crippled by a gray wolf that it must be destroyed. TheExcept as provided in this 
18.12 	section, the owner is entitled to the fair market value of the destroyed livestock as 
18.13 	determined by the commissioner, upon recommendation of a university extension agent 
18.14 	or a conservation officer. In any fiscal year, a livestock owner may not be compensated 
18.15 	for a destroyed animal claim that is less than $100 in value and may be compensated up 
18.16 	to $20,000, as determined under this section. In any fiscal year, the commissioner may 
18.17 	provide compensation for claims filed under this section and section 3.7371 up to a total 
18.18 	of $100,000 for both programs combined.
18.19 	(b) Either the agent or the conservation officer must make a personal inspection of 
18.20 	the site. The agent or the conservation officer must take into account factors in addition to 
18.21 	a visual identification of a carcass when making a recommendation to the commissioner. 
18.22 	The commissioner, upon recommendation of the agent or conservation officer, shall 
18.23 	determine whether the livestock was destroyed by a gray wolf and any deficiencies in the 
18.24 	owner's adoption of the best management practices developed in subdivision 5. The 
18.25 	commissioner may authorize payment of claims only if the agent or the conservation 
18.26 	officer has recommended payment. The owner shall file a claim on forms provided by the 
18.27 	commissioner and available at the university extension agent's office.

18.28 	Sec. 7. Minnesota Statutes 2006, section 3.7371, subdivision 3, is amended to read:
18.29 		Subd. 3.Compensation. The crop owner is entitled to the target price or the 
18.30 	market price, whichever is greater, of the damaged or destroyed crop plus adjustments 
18.31 	for yield loss determined according to agricultural stabilization and conservation service 
18.32 	programs for individual farms, adjusted annually, as determined by the commissioner, 
18.33 	upon recommendation of the county extension agent for the owner's county. The 
18.34 	commissioner, upon recommendation of the agent, shall determine whether the crop 
19.1 	damage or destruction is caused by elk and, if so, the amount of the crop that is damaged 
19.2 	or destroyed. In any calendar fiscal year, a crop owner may not be compensated for a 
19.3 	damaged or destroyed crop that is less than $100 in value and may be compensated up to 
19.4 	$20,000, as determined under this section, if normal harvest procedures for the area are 
19.5 	followed. In any fiscal year, the commissioner may provide compensation for claims filed 
19.6 	under this section and section 3.737 up to a total of $100,000 for both programs combined.

19.7 	Sec. 8. Minnesota Statutes 2006, section 17.03, subdivision 3, is amended to read:
19.8 		Subd. 3.Cooperation with federal agencies. (a) The commissioner shall cooperate 
19.9 	with the government of the United States, with financial agencies created to assist in the 
19.10 	development of the agricultural resources of this state, and so far as practicable may use 
19.11 	the facilities provided by the existing state departments and the various state and local 
19.12 	organizations. This subdivision is intended to relate to every function and duty which 
19.13 	devolves upon the commissioner.
19.14 	(b) The commissioner may apply for, receive, and disburse federal funds made 
19.15 	available to the state by federal law or regulation for any purpose related to the powers 
19.16 	and duties of the commissioner. All money received by the commissioner under this 
19.17 	paragraph shall be deposited in the state treasury and is appropriated to the commissioner 
19.18 	for the purposes for which it was received. Money received under this paragraph does not 
19.19 	cancel and is available for expenditure according to federal law. The commissioner may 
19.20 	contract with and enter into grant agreements with persons, organizations, educational 
19.21 	institutions, firms, corporations, other state agencies, and any agency or instrumentality of 
19.22 	the federal government to carry out agreements made with the federal government relating 
19.23 	to the expenditure of money under this paragraph. Bid requirements under chapter 16C do 
19.24 	not apply to contracts under this paragraph.

19.25 	Sec. 9. Minnesota Statutes 2006, section 17.101, subdivision 2, is amended to read:
19.26 		Subd. 2.Agricultural development grants and contracts. In order to carry out 
19.27 	the duties in subdivision 1, the commissioner, in addition to whatever other resources 
19.28 	the department may commit, shall make grants and enter into contracts to fulfill the 
19.29 	obligations of subdivision 1. The commissioner may enter into partnerships or seek gifts to 
19.30 	carry out subdivision 1. The commissioner may contract with, among others, agricultural 
19.31 	commodity organizations, the University of Minnesota, and agriculture related businesses 
19.32 	to fulfill the duties. The commissioner shall make permanent rules for the administration 
19.33 	of these grants and contracts. The rules shall specify at a minimum:
19.34 	(a) eligibility criteria;
20.1 	(b) application procedures;
20.2 	(c) provisions for application review and project approval;
20.3 	(d) provisions for program monitoring and review for all approved grants and 
20.4 	contracts; and
20.5 	(e) other provisions the commissioner finds necessary.
20.6 	Contracts entered into by the commissioner pursuant to this subdivision shall not 
20.7 	exceed 75 percent of the cost of the project supported by the commissioner's grant. In 
20.8 	any biennium year, no organization shall receive more than $70,000 in grants from the 
20.9 	commissioner.

20.10 	Sec. 10. Minnesota Statutes 2006, section 17.102, subdivision 1, is amended to read:
20.11 		Subdivision 1.Establishment and use of label. (a) The commissioner shall 
20.12 	establish a "Minnesota grown" logo or labeling statement for use in identifying 
20.13 	agricultural products that are grown, raised, processed, or manufactured in this state. 
20.14 	The commissioner may develop labeling statements that apply to specific marketing or 
20.15 	promotional needs. One version of a labeling statement must identify food products 
20.16 	certified as organically grown in this state. The Minnesota grown logo or labeling 
20.17 	statement may be used on raw agricultural products only if 80 percent or more of the 
20.18 	agricultural product is produced in this state.
20.19 	(b) The Minnesota grown logo or labeling statement may not be used without 
20.20 	a license from the commissioner except that wholesalers and retailers may use the 
20.21 	Minnesota grown logo and labeling statement for displaying and advertising products that 
20.22 	qualify for use of the Minnesota grown logo or labeling statement.

20.23 	Sec. 11. Minnesota Statutes 2006, section 17.102, subdivision 3, is amended to read:
20.24 		Subd. 3.License. A person may not use the Minnesota grown logo or labeling 
20.25 	without an annual license from the commissioner. The commissioner shall issue licenses 
20.26 	for a fee of $5 $20.

20.27 	Sec. 12. Minnesota Statutes 2006, section 17.102, subdivision 4, is amended to read:
20.28 		Subd. 4.Minnesota grown account. The Minnesota grown account is established 
20.29 	as an account in the agricultural fund. License fee receipts and penalties collected under 
20.30 	this section must be deposited in the agricultural fund and credited to the Minnesota grown 
20.31 	account. The money in the account is continuously appropriated to the commissioner to 
20.32 	implement and enforce this section and to promote the Minnesota grown logo and labeling
20.33 	for the direct costs of implementing the Minnesota grown program.

21.1 	Sec. 13. Minnesota Statutes 2006, section 17.102, is amended by adding a subdivision 
21.2 	to read:
21.3 		Subd. 4a.Funding sources. The Minnesota grown account shall consist of 
21.4 	license fees, penalties, advertising revenue, revenue from the development and sale of 
21.5 	promotional materials, gifts, and appropriations.

21.6 	Sec. 14. Minnesota Statutes 2006, section 17.102, is amended by adding a subdivision 
21.7 	to read:
21.8 		Subd. 4b.Appropriations must be matched by private funds. Appropriations 
21.9 	from the Minnesota grown account may be expended only to the extent that they are 
21.10 	matched with contributions to the account from private sources on a basis of at least $1 
21.11 	of private contributions to each $4 of state money. For the purposes of this subdivision, 
21.12 	"private contributions" includes, but is not limited to, license fees, penalties, advertising 
21.13 	revenue, revenue from the development and sale of promotional materials, and gifts.

21.14 	Sec. 15. Minnesota Statutes 2006, section 17.117, subdivision 1, is amended to read:
21.15 		Subdivision 1.Purpose. The purpose of the agriculture best management practices 
21.16 	loan program is to provide low or no interest financing to farmers, agriculture supply 
21.17 	businesses, and rural landowners, and water-quality cooperatives for the implementation 
21.18 	of agriculture and other best management practices that reduce environmental pollution.

21.19 	Sec. 16. Minnesota Statutes 2006, section 17.117, subdivision 4, is amended to read:
21.20 		Subd. 4.Definitions. (a) For the purposes of this section, the terms defined in this 
21.21 	subdivision have the meanings given them.
21.22 	(b) "Agricultural and environmental revolving accounts" means accounts in the 
21.23 	agricultural fund, controlled by the commissioner, which hold funds available to the 
21.24 	program.
21.25 	(c) "Agriculture supply business" means a person, partnership, joint venture, 
21.26 	corporation, limited liability company, association, firm, public service company, 
21.27 	or cooperative that provides materials, equipment, or services to farmers or 
21.28 	agriculture-related enterprises.
21.29 	(d) "Allocation" means the funds awarded to an applicant for implementation of best 
21.30 	management practices through a competitive or noncompetitive application process.
21.31 	(e) "Applicant" means a local unit of government eligible to participate in this 
21.32 	program that requests an allocation of funds as provided in subdivision 6b.
22.1 	(f) "Best management practices" has the meaning given in sections 103F.711, 
22.2 	subdivision 3, and 103H.151, subdivision 2, or other practices, techniques, and measures 
22.3 	that have been demonstrated to the satisfaction of the commissioner to prevent or reduce 
22.4 	adverse environmental impacts by using the most effective and practicable means of 
22.5 	achieving environmental goals. 
22.6 	(g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner 
22.7 	applying for a low-interest loan.
22.8 	(h) "Commissioner" means the commissioner of agriculture, including when the 
22.9 	commissioner is acting in the capacity of chair of the Rural Finance Authority, or the 
22.10 	designee of the commissioner.
22.11 	(i) "Committed project" means an eligible project scheduled to be implemented at 
22.12 	a future date:
22.13 	(1) that has been approved and certified by the local government unit; and
22.14 	(2) for which a local lender has obligated itself to offer a loan.
22.15 	(j) "Comprehensive water management plan" means a state approved and locally 
22.16 	adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331, 
22.17 	103D.401, or 103D.405. 
22.18 	(k) "Cost incurred" means expenses for implementation of a project accrued because 
22.19 	the borrower has agreed to purchase equipment or is obligated to pay for services or 
22.20 	materials already provided as a result of implementing a prior an approved eligible project.
22.21 	(l) "Farmer" means a person, partnership, joint venture, corporation, limited liability 
22.22 	company, association, firm, public service company, or cooperative that regularly 
22.23 	participates in physical labor or operations management of farming and files a Schedule F 
22.24 	as part of filing United States Internal Revenue Service Form 1040 or indicates farming as 
22.25 	the primary business activity under Schedule C, K, or S, or any other applicable report to 
22.26 	the United States Internal Revenue Service.
22.27 	(m) "Lender agreement" means an agreement entered into between the commissioner 
22.28 	and a local lender which contains terms and conditions of participation in the program.
22.29 	(n) "Local government unit" means a county, soil and water conservation district, 
22.30 	or an organization formed for the joint exercise of powers under section 471.59 with 
22.31 	the authority to participate in the program. 
22.32 	(o) "Local lender" means a local government unit as defined in paragraph (n), a state 
22.33 	or federally chartered bank, a savings association, a state or federal credit union, Agribank 
22.34 	and its affiliated organizations, or a nonprofit economic development organization or other 
22.35 	financial lending institution approved by the commissioner.
23.1 	(p) "Local revolving loan account" means the account held by a local government 
23.2 	unit and a local lender into which principal repayments from borrowers are deposited and 
23.3 	new loans are issued in accordance with the requirements of the program and lender 
23.4 	agreements.
23.5 	(q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6. 
23.6 	(r) "Program" means the agriculture best management practices loan program 
23.7 	in this section.
23.8 	(s) "Project" means one or more components or activities located within Minnesota 
23.9 	that are required by the local government unit to be implemented for satisfactory 
23.10 	completion of an eligible best management practice.
23.11 	(t) "Rural landowner" means the owner of record of Minnesota real estate located 
23.12 	in an area determined by the local government unit to be rural after consideration of 
23.13 	local land use patterns, zoning regulations, jurisdictional boundaries, local community 
23.14 	definitions, historical uses, and other pertinent local factors.
23.15 	(u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph 
23.16 	(d), except as expressly limited in this section.

23.17 	Sec. 17. Minnesota Statutes 2006, section 17.117, subdivision 5a, is amended to read:
23.18 		Subd. 5a.Agricultural and environmental revolving accounts. (a) There 
23.19 	shall be established in the agriculturalspecial revenue fund revolving accounts to 
23.20 	receive appropriations, transfers of the balances from previous appropriations for the 
23.21 	activities under this section, and money from other sources. All balances from previous 
23.22 	appropriations for activities under this section and repayments of loans granted under this 
23.23 	section, including principal and interest, must be deposited into the appropriate revolving 
23.24 	account created in this subdivision or the account created in subdivision 13. Interest 
23.25 	earned in an account accrues to that account.
23.26 	(b) The money in the revolving accounts and the account created in subdivision 13 is 
23.27 	appropriated to the commissioner for the purposes of this section.

23.28 	Sec. 18. Minnesota Statutes 2006, section 17.117, subdivision 5b, is amended to read:
23.29 		Subd. 5b.Application fee. The commissioner may impose a nonrefundable 
23.30 	application fee of $50 for each loan issued under the program. The fees must be credited 
23.31 	to the agricultural best management practices administration account, which is hereby 
23.32 	established in the agriculturalspecial revenue fund. Interest earned in the account accrues 
23.33 	to the account. Money in the account and interest earned in the accounts established 
24.1 	in the agricultural fund under subdivision 5a are appropriated to the commissioner for 
24.2 	administrative expenses of the program.

24.3 	Sec. 19. Minnesota Statutes 2006, section 17.117, subdivision 11, is amended to read:
24.4 		Subd. 11.Loans issued to borrower. (a) Local lenders may issue loans only for 
24.5 	projects that are approved and certified by the local government unit as meeting priority 
24.6 	needs identified in a comprehensive water management plan or other local planning 
24.7 	documents, are in compliance with accepted practices, standards, specifications, or 
24.8 	criteria, and are eligible for financing under Environmental Protection Agency or other 
24.9 	applicable guidelines.
24.10 	(b) The local lender may use any additional criteria considered necessary to 
24.11 	determine the eligibility of borrowers for loans.
24.12 	(c) Local lenders shall set the terms and conditions of loans to borrowers, except that:
24.13 	(1) no loan to a borrower may exceed $50,000 $100,000;
24.14 	(2) no loan for a project may exceed $50,000 $100,000; and
24.15 	(3) no borrower shall, at any time, have multiple loans from this program with a total 
24.16 	outstanding loan balance of more than $50,000 $100,000.
24.17 	(d) The maximum term length for conservation tillage projects is five years. The 
24.18 	maximum term length for other projects in this paragraph is ten years.
24.19 	(e) Notwithstanding paragraph (c), a local lender may issue a loan of up to $100,000 
24.20 	for a community sewage treatment system serving two or more households.
24.21 	(f) (e) Fees charged at the time of closing must:
24.22 	(1) be in compliance with normal and customary practices of the local lender;
24.23 	(2) be in accordance with published fee schedules issued by the local lender;
24.24 	(3) not be based on participation program; and
24.25 	(4) be consistent with fees charged other similar types of loans offered by the local 
24.26 	lender.
24.27 	(g) (f) The interest rate assessed to an outstanding loan balance by the local lender 
24.28 	must not exceed three percent per year.

24.29 	Sec. 20. Minnesota Statutes 2006, section 17.982, subdivision 1, is amended to read:
24.30 		Subdivision 1.Criminal penalties. A person who violates a provision of chapter 
24.31 	25, 28A, 29, 31, 31A, 31B, or 34 for which a penalty has not been prescribed is guilty 
24.32 	of a misdemeanor.

24.33 	Sec. 21. Minnesota Statutes 2006, section 17.983, subdivision 1, is amended to read:
25.1 		Subdivision 1.Administrative penalties; citation. If a person has violated a 
25.2 	provision of chapter 25, 28A, 29, 31, 31A, 31B, 32, or 34, the commissioner may issue a 
25.3 	written citation to the person by personal service or by certified mail. The citation must 
25.4 	describe the nature of the violation and the statute or rule alleged to have been violated; 
25.5 	state the time for correction, if applicable; and the amount of any proposed fine. The 
25.6 	citation must advise the person to notify the commissioner in writing within 30 days if the 
25.7 	person wishes to appeal the citation. If the person fails to appeal the citation, the citation 
25.8 	is the final order and not subject to further review.

25.9 	Sec. 22. Minnesota Statutes 2006, section 18B.065, subdivision 1, is amended to read:
25.10 		Subdivision 1.Collection and disposal. The commissioner of agriculture shall 
25.11 	establish and operate a program to collect waste pesticides. The program shall must be 
25.12 	made available to agriculture and residential pesticide end users whose waste generating 
25.13 	activity occurs in this state.

25.14 	EFFECTIVE DATE. This section is effective July 1, 2008, and applies to all 
25.15 	cooperative agreements entered into by the commissioner of agriculture and local units of 
25.16 	government for waste pesticide collection and disposal after that date.

25.17 	Sec. 23. Minnesota Statutes 2006, section 18B.065, subdivision 2a, is amended to read:
25.18 		Subd. 2a.Disposal site requirement. The commissioner must designate a place 
25.19 	in each county of the state that is available at least every other year for the residents of 
25.20 	each county in the state persons to dispose of unused portions of pesticides in accordance 
25.21 	with subdivision 1. The commissioner shall consult with the person responsible for solid 
25.22 	waste management and disposal in each county to determine an appropriate location.

25.23 	EFFECTIVE DATE. This section is effective July 1, 2008, and applies to all 
25.24 	cooperative agreements entered into by the commissioner of agriculture and local units of 
25.25 	government for waste pesticide collection and disposal after that date.

25.26 	Sec. 24. Minnesota Statutes 2006, section 18B.26, subdivision 3, is amended to read:
25.27 		Subd. 3.Application fee. (a) A registrant shall pay an annual application fee for 
25.28 	each pesticide to be registered, and this fee is set at 0.4 percent of annual gross sales 
25.29 	within the state and annual gross sales of pesticides used in the state, with a minimum 
25.30 	nonrefundable fee of $250. The registrant shall determine when and which pesticides 
25.31 	are sold or used in this state. The registrant shall secure sufficient sales information of 
25.32 	pesticides distributed into this state from distributors and dealers, regardless of distributor 
26.1 	location, to make a determination. Sales of pesticides in this state and sales of pesticides 
26.2 	for use in this state by out-of-state distributors are not exempt and must be included in the 
26.3 	registrant's annual report, as required under paragraph (c), and fees shall be paid by the 
26.4 	registrant based upon those reported sales. Sales of pesticides in the state for use outside 
26.5 	of the state are exempt from the application fee in this paragraph if the registrant properly 
26.6 	documents the sale location and distributors. A registrant paying more than the minimum 
26.7 	fee shall pay the balance due by March 1 based on the gross sales of the pesticide by the 
26.8 	registrant for the preceding calendar year. The fee for disinfectants and sanitizers shall be 
26.9 	the minimum. The minimum fee is due by December 31 preceding the year for which 
26.10 	the application for registration is made. The commissioner shall spend at least $300,000
26.11 	$400,000, not including the commissioner's administrative costs, per fiscal year from the 
26.12 	pesticide regulatory account for the purposes of the waste pesticide collection program.
26.13 	(b) An additional fee of $100 must be paid by the applicant for each pesticide to be 
26.14 	registered if the application is a renewal application that is submitted after December 31.
26.15 	(c) A registrant must annually report to the commissioner the amount and type of 
26.16 	each registered pesticide sold, offered for sale, or otherwise distributed in the state. The 
26.17 	report shall be filed by March 1 for the previous year's registration. The commissioner 
26.18 	shall specify the form of the report and require additional information deemed necessary 
26.19 	to determine the amount and type of pesticides annually distributed in the state. The 
26.20 	information required shall include the brand name, amount, and formulation of each 
26.21 	pesticide sold, offered for sale, or otherwise distributed in the state, but the information 
26.22 	collected, if made public, shall be reported in a manner which does not identify a specific 
26.23 	brand name in the report.
26.24 	(d) A registrant who is required to pay more than the minimum fee for any pesticide 
26.25 	under paragraph (a) must pay a late fee penalty of $100 for each pesticide application fee 
26.26 	paid after March 1 in the year for which the license is to be issued.

26.27 	EFFECTIVE DATE. This section is effective July 1, 2008, and applies to all 
26.28 	cooperative agreements entered into by the commissioner of agriculture and local units of 
26.29 	government for waste pesticide collection and disposal after that date.

26.30 	Sec. 25. Minnesota Statutes 2006, section 18B.33, subdivision 1, is amended to read:
26.31 		Subdivision 1.Requirement. (a) A person may not apply a pesticide for hire 
26.32 	without a commercial applicator license for the appropriate use categories or a structural 
26.33 	pest control license or aquatic pest control license.
26.34 	(b) A person with a commercial applicator license may not apply pesticides on 
26.35 	or into surface waters without an aquatic pest control license under section 18B.315, 
27.1 	except an aquatic pest control license is not required for licensed commercial applicators 
27.2 	applying pesticides for the purposes of: 
27.3 	(1) pest control on cultivated wild rice;
27.4 	(2) mosquito and black fly control operations;
27.5 	(3) pest control on rights-of-way;
27.6 	(4) aerial pest control operations for emergent vegetation control;
27.7 	(5) aerial application of piscicides; and
27.8 	(6) pest control for silvicultural operations.
27.9 	(c)(b) A commercial applicator licensee must have a valid license identification card 
27.10 	when applying pesticides for hire and must display it upon demand by an authorized 
27.11 	representative of the commissioner or a law enforcement officer. The commissioner shall 
27.12 	prescribe the information required on the license identification card.

27.13 	Sec. 26. Minnesota Statutes 2006, section 18B.34, subdivision 1, is amended to read:
27.14 		Subdivision 1.Requirement. (a) Except for a licensed commercial applicator, 
27.15 	certified private applicator, a licensed aquatic pest control applicator, or licensed structural 
27.16 	pest control applicator, a person, including a government employee, may not use a 
27.17 	restricted use pesticide in performance of official duties without having a noncommercial 
27.18 	applicator license for an appropriate use category.
27.19 	(b) A licensed noncommercial applicator may not apply pesticides into or on surface 
27.20 	waters without an aquatic pest control license, except an aquatic pest control license is not 
27.21 	required for licensed noncommercial applicators applying pesticides for the purposes of:
27.22 	(1) mosquito and black fly control operations;
27.23 	(2) pest control on rights-of-way;
27.24 	(3) pest control operations for purple loosestrife control;
27.25 	(4) application of piscicides; and
27.26 	(5) pest control for silvicultural operations.
27.27 	(c)(b) A licensee must have a valid license identification card when applying 
27.28 	pesticides and must display it upon demand by an authorized representative of the 
27.29 	commissioner or a law enforcement officer. The license identification card must contain 
27.30 	information required by the commissioner.

27.31 	Sec. 27. Minnesota Statutes 2006, section 18B.345, is amended to read:
27.32 	18B.345 PESTICIDE APPLICATION ON GOLF COURSES.
27.33 	(a) Application of a pesticide to the property of a golf course must be performed by:
27.34 	(1) a structural pest control applicator; or
28.1 	(2) a commercial or noncommercial pesticide applicator with appropriate use 
28.2 	certification; or.
28.3 	(3) an aquatic pest control applicator.
28.4 	(b) Pesticides determined by the commissioner to be sanitizers and disinfectants are 
28.5 	exempt from the requirements in paragraph (a).

28.6 	Sec. 28. Minnesota Statutes 2006, section 18C.305, is amended by adding a 
28.7 	subdivision to read:
28.8 		Subd. 3.Exemption. A permit and safeguard is not required for agricultural 
28.9 	commodity producers who store, on their own property, for their own use, no more than 
28.10 	6,000 gallons of liquid commercial fertilizer.

28.11 	Sec. 29. [18C.70] MINNESOTA AGRICULTURAL FERTILIZER RESEARCH 
28.12 	AND EDUCATION COUNCIL.
28.13 		Subdivision 1.Establishment; membership. (a) The Minnesota Agricultural 
28.14 	Fertilizer Research and Education Council is established. The council is composed of 
28.15 	12 voting members as follows:
28.16 	(1) two members of the Minnesota Crop Production Retailers; 
28.17 	(2) one member of the Minnesota Corn Growers Association; 
28.18 	(3) one member of the Minnesota Soybean Growers Association; 
28.19 	(4) one member of the sugar beet growers industry; 
28.20 	(5) one member of the Minnesota Association of Wheat Growers; 
28.21 	(6) one member of the potato growers industry; 
28.22 	(7) one member of the Minnesota Farm Bureau; 
28.23 	(8) one member of the Minnesota Farmers Union; 
28.24 	(9) one member from the Minnesota Irrigators Association; 
28.25 	(10) one member of the Minnesota Grain and Feed Association; and 
28.26 	(11) one member of the Minnesota Independent Crop Consultant Association or the 
28.27 	Minnesota certified crop advisor program. 
28.28 	(b) Council members shall serve three-year terms. After the initial council is 
28.29 	appointed, subsequent appointments must be staggered so that one-third of council 
28.30 	membership is replaced each year. Council members must be nominated by their 
28.31 	organizations and appointed by the commissioner. The council may add ex-officio 
28.32 	members at its discretion. The council must meet at least once per year, with all 
28.33 	related expenses reimbursed by members' sponsoring organizations or by the members 
28.34 	themselves. 
29.1 		Subd. 2.Powers and duties. The council must review applications and select 
29.2 	projects to receive agricultural fertilizer research and education program grants, as 
29.3 	authorized in section 18C.71. The council must establish a program to provide grants to 
29.4 	research, education, and technology transfer projects related to agricultural fertilizer, 
29.5 	soil amendments, and plant amendments. For the purpose of this section, "fertilizer" 
29.6 	includes soil amendments and plant amendments, but does not include vegetable or 
29.7 	animal manures that are not manipulated. The commissioner is responsible for all fiscal 
29.8 	and administrative duties in the first year and may use up to eight percent of program 
29.9 	revenue to offset costs incurred. No later than October 1, 2007, the commissioner must 
29.10 	provide the council with an estimate of the annual costs the commissioner would incur in 
29.11 	administering the program.
29.12 		Subd. 3.Checkoff fees. The council may recommend to the governor and 
29.13 	legislature a checkoff fee to provide funding for grants under section 18C.71.
29.14 		Subd. 4.Rules. The commissioner's duties under this section and section 18C.71 
29.15 	are not subject to the provisions of chapter 14.
29.16 		Subd. 5.Expiration. This section expires January 8, 2017.

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

29.18 	Sec. 30. [18C.71] MINNESOTA AGRICULTURAL FERTILIZER RESEARCH 
29.19 	AND EDUCATION PROGRAM.
29.20 		Subdivision 1.Eligible projects. Eligible project activities include research, 
29.21 	education, and technology transfer related to the production and application of fertilizer, 
29.22 	soil amendments, and other plant amendments. Chosen projects must contain a component 
29.23 	of outreach that achieves a timely dissemination of findings and their applicability to the 
29.24 	production agricultural community. 
29.25 		Subd. 2.Awarding grants. Applications for program grants must be submitted in 
29.26 	the form prescribed by the Minnesota Agricultural Fertilizer Research and Education 
29.27 	Council. Applications must be submitted on or before the deadline prescribed by the 
29.28 	council. All applications are subject to a thorough in-state review by a peer committee 
29.29 	established and approved by the council. Each project meeting the basic qualifications is 
29.30 	subject to a yes or no vote by each council member. Projects chosen to receive funding 
29.31 	must achieve an affirmative vote from at least eight of the 12 council members or 
29.32 	two-thirds of voting members present. Projects awarded program funds must submit an 
29.33 	annual progress report in the form prescribed by the council. 
30.1 		Subd. 3.Annual audit. The program must have an annual audit of financial 
30.2 	activities, which the council must file with the commissioner on or before June 1 for the 
30.3 	immediately preceding year ending December 31.
30.4 		Subd. 4.Expiration. This section expires January 8, 2017.

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

30.6 	Sec. 31. Minnesota Statutes 2006, section 18E.02, subdivision 1, is amended to read:
30.7 		Subdivision 1.Definitions in chapters 18B, 18C, and 18D apply. The definitions 
30.8 	contained in this section andapply to this chapter. Except for terms defined in this section, 
30.9 	the definitions contained in  chapters 18B, 18C, and 18D apply to this chapter.

30.10 	Sec. 32. Minnesota Statutes 2006, section 18E.02, subdivision 5, is amended to read:
30.11 		Subd. 5.Eligible person. "Eligible person" means:
30.12 	(1) a responsible party or an owner of real property, but does not include the state, 
30.13 	a state agency, or a political subdivision of the state, except as provided in clause (2),; 
30.14 	common carriers, as defined by section 218.011, subdivision 10; motor carriers as defined 
30.15 	by section 221.011, subdivision 15, while transporting agricultural chemicals except as 
30.16 	provided in clause (3); or the federal government, or an agency of the federal government;
30.17 	(2) the owners of municipal airports in Minnesota where a licensed aerial pesticide 
30.18 	applicator has caused an incident through storage, handling, or distribution operations for 
30.19 	agricultural chemicals if (i) the commissioner has determined that corrective action is 
30.20 	necessary and (ii) the commissioner determines, and the Agricultural Chemical Response 
30.21 	Compensation Board concurs, that based on an affirmative showing made by the owner, a 
30.22 	responsible party cannot be identified or the identified responsible party is unable to 
30.23 	comply with an order for corrective action; or
30.24 	(3) a person involved in a transaction relating to real property who is not a responsible 
30.25 	party or owner of the real property and who voluntarily takes corrective action on the 
30.26 	property in response to a request or order for corrective action from the commissioner.

30.27 	Sec. 33. Minnesota Statutes 2006, section 18E.02, is amended by adding a subdivision 
30.28 	to read:
30.29 		Subd. 7.Incident. "Incident" means a flood, fire, tornado, transportation accident, 
30.30 	storage container rupture, leak, spill, emission discharge, escape, disposal, or other event 
30.31 	that releases an agricultural chemical accidentally or otherwise into the environment and 
30.32 	may cause unreasonable adverse effects on the environment. Incident does not include a 
30.33 	release from the normal use of a product or practice in accordance with law.

31.1 	Sec. 34. Minnesota Statutes 2006, section 18E.03, subdivision 4, is amended to read:
31.2 		Subd. 4.Fee. (a) The response and reimbursement fee consists of the surcharges and 
31.3 	any adjustments made by the commissioner in this subdivision and shall be collected by 
31.4 	the commissioner. The amount of the response and reimbursement fee shall be determined 
31.5 	and imposed annually by the commissioner as required to satisfy the requirements in 
31.6 	subdivision 3. The commissioner shall adjust the amount of the surcharges imposed in 
31.7 	proportion to the amount of the surcharges listed in this subdivision. License application 
31.8 	categories under paragraph (d) must be charged in proportion to the amount of surcharges 
31.9 	imposed up to a maximum of 50 percent of the license fees set under chapters 18B and 
31.10 	18C.
31.11 	(b) The commissioner shall impose a surcharge on pesticides registered under 
31.12 	chapter 18B to be collected as a surcharge on the registration application fee under 
31.13 	section 18B.26, subdivision 3, that is equal to 0.1 percent of sales of the pesticide in the 
31.14 	state and sales of pesticides for use in the state during the previous calendar year, except 
31.15 	the surcharge may not be imposed on pesticides that are sanitizers or disinfectants as 
31.16 	determined by the commissioner. No surcharge is required if the surcharge amount based 
31.17 	on percent of annual gross sales is less than $10. The registrant shall determine when and 
31.18 	which pesticides are sold or used in this state. The registrant shall secure sufficient sales 
31.19 	information of pesticides distributed into this state from distributors and dealers, regardless 
31.20 	of distributor location, to make a determination. Sales of pesticides in this state and sales 
31.21 	of pesticides for use in this state by out-of-state distributors are not exempt and must be 
31.22 	included in the registrant's annual report, as required under section 18B.26, subdivision 3, 
31.23 	paragraph (c), and fees shall be paid by the registrant based upon those reported sales. 
31.24 	Sales of pesticides in the state for use outside of the state are exempt from the surcharge in 
31.25 	this paragraph if the registrant properly documents the sale location and the distributors. 
31.26 	(c) The commissioner shall impose a ten cents per ton surcharge on the inspection 
31.27 	fee under section 18C.425, subdivision 6, for fertilizers, soil amendments, and plant 
31.28 	amendments. 
31.29 	(d) The commissioner shall impose a surcharge on the license application of persons 
31.30 	licensed under chapters 18B and 18C consisting of:
31.31 	(1) a $75 surcharge for each site where pesticides are stored or distributed, to 
31.32 	be imposed as a surcharge on pesticide dealer application fees under section 18B.31, 
31.33 	subdivision 5; 
31.34 	(2) a $75 surcharge for each site where a fertilizer, plant amendment, or soil 
31.35 	amendment is distributed, to be imposed on persons licensed under sections 18C.415
31.36 	and 18C.425; 
32.1 	(3) a $50 surcharge to be imposed on a structural pest control applicator license 
32.2 	application under section 18B.32, subdivision 6, for business license applications only; 
32.3 	(4) a $20 surcharge to be imposed on commercial applicator license application fees 
32.4 	under section 18B.33, subdivision 7; and
32.5 	(5) a $20 surcharge to be imposed on noncommercial applicator license application 
32.6 	fees under section 18B.34, subdivision 5, except a surcharge may not be imposed on a 
32.7 	noncommercial applicator that is a state agency, political subdivision of the state, the 
32.8 	federal government, or an agency of the federal government; and.
32.9 	(6) a $20 surcharge to be imposed on aquatic pest control licenses under section 
32.10 	18B.315. 
32.11 	(e) A $1,000 fee shall be imposed on each site where pesticides are stored and sold 
32.12 	for use outside of the state unless:
32.13 	(1) the distributor properly documents that it has less than $2,000,000 per year in 
32.14 	wholesale value of pesticides stored and transferred through the site; or
32.15 	(2) the registrant pays the surcharge under paragraph (b) and the registration fee 
32.16 	under section 18B.26, subdivision 3, for all of the pesticides stored at the site and sold for 
32.17 	use outside of the state. 
32.18 	(f) Paragraphs (c) to (e) apply to sales, licenses issued, applications received for 
32.19 	licenses, and inspection fees imposed on or after July 1, 1990.

32.20 	Sec. 35. Minnesota Statutes 2006, section 25.341, subdivision 1, is amended to read:
32.21 		Subdivision 1.Requirement. Before a person may: (1) manufacture a commercial 
32.22 	feed in the state; (2) distribute a commercial feed in or into the state; or (3) have the 
32.23 	person's name appear on the label of a commercial feed as guarantor, the person must have 
32.24 	a commercial feed license for each manufacturing or distributing facility. A person who 
32.25 	makes only retail sales of commercial feed bearing labeling or another approved indication 
32.26 	that the commercial feed is from a licensed manufacturer, guarantor, or distributor who 
32.27 	has assumed full responsibility for the tonnage inspection fee due under sections 25.31 to 
32.28 	25.43, guaranteed by another, is not required to obtain a license.

32.29 	Sec. 36. Minnesota Statutes 2006, section 28A.04, subdivision 1, is amended to read:
32.30 		Subdivision 1.Application; date of issuance. (a) No person shall engage in the 
32.31 	business of manufacturing, processing, selling, handling, or storing food without having 
32.32 	first obtained from the commissioner a license for doing such business. Applications for 
32.33 	such license shall be made to the commissioner in such manner and time as required 
32.34 	and upon such forms as provided by the commissioner and shall contain the name and 
33.1 	address of the applicant, address or description of each place of business, and the nature 
33.2 	of the business to be conducted at each place, and such other pertinent information as 
33.3 	the commissioner may require.
33.4 	(b) A retail or wholesale food handler license shall be issued for the period July 1 
33.5 	to June 30 following and shall be renewed thereafter by the licensee on or before July 
33.6 	1 each year, except that:
33.7 	(1) licenses for all mobile food concession units and retail mobile units shall must be 
33.8 	issued for the period April 1 to March 31, and shall must be renewed thereafter by the 
33.9 	licensee on or before April 1 each year; and
33.10 	(2) a license issued for a temporary food concession stand must have a license 
33.11 	issuance and renewal date consistent with appropriate statutory provisions.
33.12 	 A license for a food broker or for a food processor or manufacturer shall be issued for the 
33.13 	period January 1 to December 31 following and shall be renewed thereafter by the licensee 
33.14 	on or before January 1 of each year, except that a license for a wholesale food processor or 
33.15 	manufacturer operating only at the state fair shall be issued for the period July 1 to June 30 
33.16 	following and shall be renewed thereafter by the licensee on or before July 1 of each year. 
33.17 	A penalty for a late renewal shall be assessed in accordance with section 28A.08. 
33.18 	(c) A person applying for a new license up to 14 calendar days before the effective 
33.19 	date of the new license period under paragraph (b) must be issued a license for the 14 days 
33.20 	and the next license year as a single license and pay a single license fee as if the 14 days 
33.21 	were part of the upcoming license period.

33.22 	Sec. 37. Minnesota Statutes 2006, section 28A.06, is amended to read:
33.23 	28A.06 EXTENT OF LICENSE.
33.24 	No person, except as described in sections 27.03 and 27.04, shall be required to 
33.25 	hold more than one license in order to engage in any aspect of food handling described 
33.26 	in section 28A.05 provided, that each issued license shall be valid for no more than one 
33.27 	place of business, except that a license for a mobile unit or a retail food vehicle, portable 
33.28 	structure, or cart is valid statewide and is required to be issued only once each year unless 
33.29 	the licensee fails to display the license as required by section 28A.07 or it is a seasonal 
33.30 	permanent food stand, seasonal temporary food stand, food cart, or special event food 
33.31 	stand as defined in section 157.15, in which case the duration of the license is restricted by 
33.32 	the limitations found in the definitions in section 157.15. 

33.33 	Sec. 38. Minnesota Statutes 2006, section 28A.082, subdivision 1, is amended to read:
34.1 		Subdivision 1.Fees; application. The fees for review of food handler facility floor 
34.2 	plans under the Minnesota Food Code are based upon the square footage of the structure 
34.3 	being newly constructed, remodeled, or converted. The fees for the review shall be:

34.4		square footage
		review fee
	
34.5		0 - 4,999
........	$
	156.25 200.00
	
34.6		5,000 - 24,999
........	$
	218.75 275.00
	
34.7		25,000 plus
........	$
	343.75 425.00
	
34.8 	The applicant must submit the required fee, review application, plans, equipment 
34.9 	specifications, materials lists, and other required information on forms supplied by the 
34.10 	department at least 30 days prior to commencement of construction, remodeling, or 
34.11 	conversion.

34.12 	Sec. 39. [28A.21] FOOD SAFETY AND DEFENSE TASK FORCE.
34.13 		Subdivision 1.Establishment. The Food Safety and Defense Task Force is 
34.14 	established to advise the commissioner and the legislature on food issues and food safety.
34.15 		Subd. 2.Membership. (a) The Food Safety and Defense Task Force consists of:
34.16 	(1) the commissioner of agriculture or the commissioner's designee;
34.17 	(2) the commissioner of health or the commissioner's designee;
34.18 	(3) a representative of the United States Food and Drug Administration;
34.19 	(4) a representative of the United States Department of Agriculture;
34.20 	(5) a representative of the Agricultural Utilization Research Institute;
34.21 	(6) one member of the Minnesota Grocers Association;
34.22 	(7) one member from the University of Minnesota knowledgeable in food and food 
34.23 	safety issues; and
34.24 	(8) nine members appointed by the governor who are interested in food and food 
34.25 	safety, of whom:
34.26 	(i) two persons are health or food professionals;
34.27 	(ii) one person represents a statewide general farm organization;
34.28 	(iii) one person represents a local food inspection agency;
34.29 	(iv) one person represents a food-oriented consumer group; and
34.30 	(v) one person represents a Minnesota-based manufacturer of microbial detection 
34.31 	equipment and remediation products.
34.32 	(b) Members shall serve without compensation. Members appointed by the governor 
34.33 	shall serve four-year terms.
34.34 		Subd. 3.Organization. (a) The commissioner or the commissioner's designee shall 
34.35 	convene the first meeting of the task force.
35.1 	(b) The task force shall meet monthly or as determined by the chair.
35.2 	(c) The members of the task force shall annually elect a chair and other officers 
35.3 	as the members deem necessary.
35.4 		Subd. 4.Staff. The commissioner shall provide support staff, office space, and 
35.5 	administrative services for the task force.
35.6 		Subd. 5.Duties. The task force shall:
35.7 	(1) coordinate educational efforts regarding food safety;
35.8 	(2) provide advice and coordination to state agencies as requested by the agencies;
35.9 	(3) serve as a source of information and referral for the public, news media, and 
35.10 	others concerned with food safety; and
35.11 	(4) make recommendations to Congress, the legislative committees with jurisdiction 
35.12 	over agriculture finance and policy, the legislature, and others about appropriate action to 
35.13 	improve food safety in the state.
35.14 		Subd. 6.Expiration. Notwithstanding section 15.059, subdivision 5, this section 
35.15 	expires June 30, 2012.

35.16 	Sec. 40. Minnesota Statutes 2006, section 32.21, subdivision 4, is amended to read:
35.17 		Subd. 4.Penalties. (a) A person, other than a milk producer, who violates this 
35.18 	section is guilty of a misdemeanor or subject to a civil penalty up to $1,000.
35.19 	(b) A milk producer may not change milk plants within 30 days, without permission 
35.20 	of the commissioner, after receiving notification from the commissioner under paragraph 
35.21 	(c) or (d) that the milk producer has violated this section.
35.22 	(c) A milk producer who violates subdivision 3, clause (1), (2), (3), (4), or (5), is 
35.23 	subject to clauses (1) to (3) of this paragraph.
35.24 	(1) Upon notification of the first violation in a 12-month period, the producer must 
35.25 	meet with the qualified dairy sanitarian to initiate corrective action within 30 days.
35.26 	(2) Upon the second violation within a 12-month period, the producer is subject to 
35.27 	a civil penalty of $300. The commissioner shall notify the producer by certified mail 
35.28 	stating the penalty is payable in 30 days, the consequences of failure to pay the penalty, 
35.29 	and the consequences of future violations.
35.30 	(3) Upon the third violation within a 12-month period, the producer is subject to 
35.31 	an additional civil penalty of $300 and possible revocation of the producer's permit or 
35.32 	certification. The commissioner shall notify the producer by certified mail that all civil 
35.33 	penalties owed must be paid within 30 days and that the commissioner is initiating 
35.34 	administrative procedures to revoke the producer's permit or certification to sell milk 
35.35 	for at least 30 days.
36.1 	(d) The producer's shipment of milk must be immediately suspended if the producer 
36.2 	is identified as an individual source of milk containing residues causing a bulk load of 
36.3 	milk to test positive in violation of subdivision 3, clause (6) or (7). The Grade A or 
36.4 	manufacturing grade permit must be converted to temporary status for not more than 
36.5 	30 days and shipment may resume only after subsequent milk has been sampled by 
36.6 	the commissioner or the commissioner's agent and found to contain no residues above 
36.7 	established tolerances or safe levels.
36.8 	The Grade A or manufacturing grade permit may be restored if the producer 
36.9 	completes the "Milk and Dairy Beef Residue Prevention Protocol" with a licensed 
36.10 	veterinarian, displays the signed certificate in the milkhouse, and sends verification to the 
36.11 	commissioner within the 30-day temporary permit status period. If the producer does 
36.12 	not comply within the temporary permit status period, the Grade A or manufacturing 
36.13 	grade permit must be suspended. A milk producer whose milk supply is in violation of 
36.14 	subdivision 3, clause (6) or (7), and has caused a bulk load to test positive is subject to 
36.15 	clauses (1) to (3) of this paragraph.
36.16 	(1) For the first violation in a 12-month period, the penalty is the value of all milk on 
36.17 	the contaminated load plus any costs associated with the disposition of the contaminated 
36.18 	load. Future pickups are prohibited until subsequent testing reveals the milk is free of 
36.19 	drug residue. A farm inspection must be completed by a qualified dairy sanitarian and 
36.20 	the producer to determine the cause of the residue and actions required to prevent future 
36.21 	violations.
36.22 	(2) For the second violation in a 12-month period, the penalty is the value of all 
36.23 	milk on the contaminated load plus any costs associated with the disposition of the 
36.24 	contaminated load. Future pickups are prohibited until subsequent testing reveals the milk 
36.25 	is free of drug residue. A farm inspection must be completed by the regulatory agency 
36.26 	or its agent a qualified dairy sanitarian to determine the cause of the residue and actions 
36.27 	required to prevent future violations.
36.28 	(3) For the third or subsequent violation in a 12-month period, the penalty is the value 
36.29 	of all milk on the contaminated load plus any costs associated with the disposition of the 
36.30 	contaminated load. Future pickups are prohibited until subsequent testing reveals the milk 
36.31 	is free of drug residue. The commissioner or the commissioner's agent shall also notify the 
36.32 	producer by certified mail that the commissioner is initiating administrative procedures to 
36.33 	revoke the producer's right permit or certification to sell milk for a minimum of 30 days.
36.34 	(4) If a bulk load of milk tests negative for residues and there is a positive producer 
36.35 	sample on the load, no civil penalties may be assessed to the producer. The plant must 
36.36 	report the positive result within 24 hours and reject further milk shipments from that 
37.1 	producer until the producer's milk tests negative. A farm inspection must be completed 
37.2 	by the plant representative and the producer a qualified dairy sanitarian to determine the 
37.3 	cause of the residue and actions required to prevent future violations. The department 
37.4 	shall suspend the producer's permit and count the violation on the producer's record. The 
37.5 	Grade A or manufacturing grade permit must be converted to temporary status for not 
37.6 	more than 30 days during which time the producer must review the "Milk and Dairy Beef 
37.7 	Residue Prevention Protocol" with a licensed veterinarian, display the signed certificate 
37.8 	in the milkhouse, and send verification to the commissioner. If these conditions are met, 
37.9 	the Grade A or manufacturing grade permit must be reinstated. If the producer does not 
37.10 	comply within the temporary permit status period, the Grade A or manufacturing grade 
37.11 	permit must be suspended.
37.12 	(e) A milk producer that has been certified as completing the "Milk and Dairy Beef 
37.13 	Residue Prevention Protocol" within 12 months of the first violation of subdivision 3, 
37.14 	clause (7), need only review the cause of the violation with a field service representative 
37.15 	within three days to maintain Grade A or manufacturing grade permit and shipping status 
37.16 	if all other requirements of this section are met.
37.17 	(f) Civil penalties collected under this section must be deposited in the milk 
37.18 	inspection services account established in this chapter.

37.19 	Sec. 41. Minnesota Statutes 2006, section 32.212, is amended to read:
37.20 	32.212 MILK HOUSES FOR BULK TANKS.
37.21 	Any producer using a bulk tank for cooling and storage of milk to be used for 
37.22 	manufacturing purposes shall have an enclosed milk room which shall conform to the 
37.23 	standards provided by this section and section 32.213. The floor shall be constructed of 
37.24 	concrete or other impervious material, maintained in good repair, and graded to provide 
37.25 	proper drainage. The walls and ceilings of the room shall be sealed and constructed 
37.26 	of smooth easily cleaned material. All windows shall be screened and doors shall be 
37.27 	self-closing. It shall be well ventilated and must meet the following requirements: 
37.28 	(1) The bulk tank shall not be located over a drain or under a ventilator.
37.29 	(2) The hose port shall be located in an exterior wall and fitted with a tight 
37.30 	self-closing door.
37.31 	(3) Each milk room shall have an adequate supply of water readily accessible with 
37.32 	facilities for heating the water, to insure the cleaning and sanitizing of the bulk tank, 
37.33 	utensils and equipment and the keeping of the milk room clean.
37.34 	(4) No lights shall be placed directly over the bulk tank.
38.1 	(5) The bulk tank shall be properly located in the milk room for easy access to all 
38.2 	areas for cleaning and servicing.
38.3 	(6) The milkhouse shall be used only for storage of milk, milk utensils, and supplies 
38.4 	incidental to the production of milk.
38.5 	(7) This section and section 32.213 are is effective for all bulk tanks for milk 
38.6 	produced for manufacturing purposes. 
38.7 	(8) No milk processor shall buy milk from any producer of milk using a bulk 
38.8 	tank to be used for manufacturing purposes unless such producer has complied with the 
38.9 	provisions of this section.
38.10 	(9) After July 1, 1965, no person shall install a bulk tank except in a milk room or 
38.11 	milkhouse which complies with the provisions of this section and section 32.213. 
38.12 	(10) The enforcement of this section and section 32.213 shall be administered by 
38.13 	the Minnesota Department of Agriculture. 
38.14 	(11) Any person violating any provisions of this section and section 32.213 shall be 
38.15 	punished by a fine of not more than $50. 

38.16 	Sec. 42. Minnesota Statutes 2006, section 32.394, subdivision 4, is amended to read:
38.17 		Subd. 4.Rules. The commissioner shall by rule promulgate adopt identity, 
38.18 	production, and processing standards for milk, milk products, and goat milk which are 
38.19 	intended to bear the Grade A label.
38.20 	In the exercise of the authority to establish requirements for Grade A milk, milk 
38.21 	products, and goat milk, the commissioner adopts definitions, standards of identity, and 
38.22 	requirements for production and processing contained in the "2001 Grade A Pasteurized 
38.23 	Milk Ordinance" and the "1995 Grade A Condensed and Dry Milk Ordinance" of the 
38.24 	United States Department of Health and Human Services, in a manner provided for and 
38.25 	not in conflict with law.

38.26 	Sec. 43. Minnesota Statutes 2006, section 32.415, is amended to read:
38.27 	32.415 MILK FOR MANUFACTURING; QUALITY STANDARDS.
38.28 	(a) The commissioner may adopt rules to provide uniform quality standards, 
38.29 	and producers of milk used for manufacturing purposes shall conform to the 
38.30 	standards contained in Subparts B, C, D, E, and F of the United States Department of 
38.31 	Agriculture Consumer and Marketing Service Recommended Requirements for Milk 
38.32 	for Manufacturing Purposes and its Production and Processing, as revised through June 
38.33 	17, 2002, except that the commissioner shall develop methods by which producers can 
38.34 	comply with the standards without violation of religious beliefs.
39.1 	(b) The commissioner shall perform or contract for the performance of the 
39.2 	inspections necessary to implement this section or shall certify dairy industry personnel to 
39.3 	perform the inspections.
39.4 	(c) The commissioner and other employees of the department shall make every 
39.5 	reasonable effort to assist producers in achieving the milk quality standards at minimum 
39.6 	cost and to use the experience and expertise of the University of Minnesota and the 
39.7 	Agricultural Extension Service to assist producers in achieving the milk quality standards 
39.8 	in the most cost-effective manner.
39.9 	(d) The commissioner shall consult with producers, processors, and others involved 
39.10 	in the dairy industry in order to prepare for the implementation of this section including 
39.11 	development of informational and educational materials, meetings, and other methods of 
39.12 	informing producers about the implementation of standards under this section.

39.13 	Sec. 44. [35.085] INDEMNITY FOR DESTROYED CATTLE.
39.14 	(a) The board may pay indemnity to cattle owners who choose to euthanize cattle 
39.15 	that test suspect for bovine tuberculosis, if funds are available from appropriations for the 
39.16 	purpose and if the United States Department of Agriculture refuses to pay indemnity for 
39.17 	the animal. The board shall pay fair market value less salvage value as appraised by a 
39.18 	disinterested appraiser appointed by the board. The board's decision as to the amount of 
39.19 	indemnity is final. If the owner refuses the board's offer, the owner need not dispose of the 
39.20 	animal unless and until it later shows positive to any official test for bovine tuberculosis.
39.21 	(b) The board is a buyer in the ordinary course of business under chapter 336A when 
39.22 	making indemnity payments under this section.

39.23 	Sec. 45. [35.244] RULES FOR CONTROL OF BOVINE TUBERCULOSIS.
39.24 	The board may adopt rules to provide for the control of tuberculosis in cattle. The 
39.25 	rules may include provisions for quarantine, tests, and such other measures as the board 
39.26 	deems appropriate. Federal regulations, as provided by Code of Federal Regulations, title 
39.27 	9, part 77, and the Bovine Tuberculosis Eradication Uniform Methods and Rules, are 
39.28 	incorporated as part of the rules in this state.

39.29 	Sec. 46. [41A.10] CELLULOSIC BIOFUEL DEVELOPMENT.
39.30 		Subdivision 1.Definitions. For the purposes of this section and section 103F.518, 
39.31 	the terms defined in this subdivision have the meanings given them.
39.32 	(a) "Cellulosic biofuel" means transportation fuel derived from cellulosic materials.
40.1 	(b) "Cellulosic material" means an agricultural feedstock primarily comprised 
40.2 	of cellulose, hemicellulose, or lignin or a combination of those ingredients grown on 
40.3 	agricultural lands. 
40.4 	(c) "Agricultural land" means land used for horticultural, row, close grown, pasture, 
40.5 	and hayland crops; growing nursery stocks; animal feedlots; farm yards; associated 
40.6 	building sites; and public and private drainage systems and field roads located on any of 
40.7 	that land.
40.8 	(d) "Cellulosic biofuel facility" means a facility at which cellulosic biofuel is 
40.9 	produced.
40.10 	(e) "Perennial crops" means agriculturally produced plants that have a life cycle of at 
40.11 	least three years at the location where the plants are being cultivated.
40.12 	(f) "Perennial cropping system" means an agricultural production system that 
40.13 	utilizes a perennial crop.
40.14 	(g) "Native species" means a plant species which was present in a defined area of 
40.15 	Minnesota prior to European settlement (circa 1850). A defined area may be an ecological 
40.16 	classification province. Wild-type varieties therefore are regional or local ecotypes that 
40.17 	have not undergone a selection process. 
40.18 	(h) "Diverse native prairie" means a prairie planted from a mix of  local Minnesota 
40.19 	native prairie species. A selection from all available native prairie species may be made so 
40.20 	as to match species appropriate to local site conditions.
40.21 	(i) "Commissioner" means the commissioner of agriculture.
40.22 		Subd. 2.Cellulosic biofuel production goal. The state cellulosic biofuel production 
40.23 	goal is one-quarter of the total amount necessary for ethanol use required under section 
40.24 	239.791, subdivision 1a, by 2015 or when cellulosic biofuel facilities in the state attain a 
40.25 	total annual production level of 60,000,000 gallons, whichever is first.

40.26 	Sec. 47. [41A.105] NEXTGEN ENERGY.
40.27 		Subdivision 1.Purpose. It is the goal of the state through the Department of 
40.28 	Agriculture to research and develop energy sources to displace fossil fuels with renewable 
40.29 	technology.
40.30 		Subd. 2.NextGen Energy Board. There is created a NextGen Energy Board 
40.31 	consisting of the commissioners of agriculture, commerce, natural resources, the Pollution 
40.32 	Control Agency, and employment and economic development; the chairs of the house and 
40.33 	senate committees with jurisdiction over energy finance; the chairs of the house and 
40.34 	senate committees with jurisdiction over agriculture finance; one member of the second 
40.35 	largest political party in the house, as appointed by the chairs of the house committees 
41.1 	with jurisdiction over agriculture finance and energy finance; one member of the second 
41.2 	largest political party in the senate, as appointed by the chairs of the senate committees 
41.3 	with jurisdiction over agriculture finance and energy finance; and the executive director 
41.4 	of the Agricultural Utilization Research Institute. In addition, the governor shall appoint 
41.5 	seven members: two representing statewide agriculture organizations; two representing 
41.6 	statewide environment and natural resource conservation organizations; one representing 
41.7 	the University of Minnesota; one representing the Minnesota Institute for Sustainable 
41.8 	Agriculture; and one representing the Minnesota State Colleges and Universities system. 
41.9 		Subd. 3.Duties. The board shall research and report to the commissioner of 
41.10 	agriculture and to the legislature recommendations as to how the state can invest its 
41.11 	resources to most efficiently achieve energy independence, agricultural and natural 
41.12 	resources sustainability, and rural economic vitality. The board shall:
41.13 	(1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen, 
41.14 	methanol, biodiesel, and ethanol within Minnesota;
41.15 	(2) develop equity grant programs to assist locally owned facilities;
41.16 	(3) study the proper role of the state in creating financing and investing and 
41.17 	providing incentives;
41.18 	(4) evaluate how state and federal programs, including the Farm Bill, can best work 
41.19 	together and leverage resources;
41.20 	(5) work with other entities and committees to develop a clean energy program; and
41.21 	(6) report to the legislature before February 1 each year with recommendations as 
41.22 	to appropriations and results of past actions and projects.
41.23 		Subd. 4.Commissioner's duties. The commissioner of agriculture shall administer 
41.24 	this section.
41.25 		Subd. 5.Expiration. This section expires June 30, 2009.

41.26 	Sec. 48. [41A.11] TWENTY-FIVE BY TWENTY-FIVE GOAL.
41.27 	It is the goal of the state that no later than January 1, 2025, the state's agricultural, 
41.28 	forestry, and working land should provide from renewable resources not less than 25 
41.29 	percent of the total energy consumed in this state while continuing to produce safe, 
41.30 	abundant, and affordable food, feed, and fiber. 

41.31 	Sec. 49. Minnesota Statutes 2006, section 41B.043, subdivision 2, is amended to read:
41.32 		Subd. 2.Specifications. No direct loan may exceed $35,000 or $125,000 for a loan 
41.33 	participation. Each direct loan and participation must be secured by a mortgage on real 
41.34 	property and such other security as the authority may require.

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

42.10 	Sec. 51. Minnesota Statutes 2006, section 41B.043, subdivision 4, is amended to read:
42.11 		Subd. 4.Interest rate. The interest rate per annum on the agricultural improvement 
42.12 	direct loan or participation must be the rate of interest determined by the authority to be 
42.13 	necessary to provide for the timely payment of principal and interest when due on bonds 
42.14 	or other obligations of the authority issued under chapter 41B to provide financing for 
42.15 	direct loans and participations made under the agricultural improvement loan program, 
42.16 	and to provide for reasonable and necessary costs of issuing, carrying, administering, 
42.17 	and securing the bonds or notes and to pay the costs incurred and to be incurred by the 
42.18 	authority in the implementation of the agricultural improvement loan program.

42.19 	Sec. 52. Minnesota Statutes 2006, section 41B.047, is amended to read:
42.20 	41B.047 DISASTER RECOVERY LOAN PROGRAM.
42.21 		Subdivision 1.Establishment. The authority shall establish and implement a 
42.22 	disaster recovery loan program to help farmers:
42.23 	(1) clean up, repair, or replace farm structures and septic and water systems, as well 
42.24 	as replacement of replace seed, other crop inputs, feed, and livestock, when damaged 
42.25 	by high winds, hail, tornado, or flood; or
42.26 	(2) purchase watering systems, irrigation systems, and other drought mitigation 
42.27 	systems and practices when drought is the cause of the purchase.
42.28 		Subd. 3.Eligibility. To be eligible for this program, a borrower must:
42.29 	(1) be a resident of this state or a domestic family farm corporation or family farm 
42.30 	partnership as defined in section 500.24, subdivision 2 meet the requirements of section 
42.31 	41B.03, subdivision 1; 
42.32 	(2) certify that the damage or loss was sustained within a county that was the subject 
42.33 	of a state or federal disaster declaration;
42.34 	(3) demonstrate an ability to repay the loan;
43.1 	(4) have a total net worth, including assets and liabilities of the borrower's spouse 
43.2 	and dependents, of less than $400,000 $660,000 in 2004 and an amount in subsequent 
43.3 	years which is adjusted for inflation by multiplying that amount by the cumulative 
43.4 	inflation rate as determined by the Consumer Price Index; and
43.5 	(5) have received at least 50 percent of average annual gross income from farming 
43.6 	for the past three years.
43.7 		Subd. 4.Loans. (a) The authority may participate in a disaster recovery loan with 
43.8 	an eligible lender to a farmer who is eligible under subdivision 3. Participation is limited 
43.9 	to 45 percent of the principal amount of the loan or $50,000, whichever is less. The 
43.10 	interest rates and repayment terms of the authority's participation interest may differ from 
43.11 	the interest rates and repayment terms of the lender's retained portion of the loan, but the 
43.12 	authority's interest rate must not exceed four percent.
43.13 	(b) Standards for loan amortization shall be set by the Rural Finance Authority 
43.14 	not to exceed ten years.
43.15 	(c) Security for the disaster recovery loans must be a personal note executed by the 
43.16 	borrower and whatever other security is required by the eligible lender or the authority.
43.17 	(d) The authority may impose a reasonable nonrefundable application fee for a 
43.18 	disaster recovery loan. The authority may review the fee annually and make adjustments 
43.19 	as necessary. The application fee is initially $50. Application fees received by the 
43.20 	authority must be deposited in the disaster recovery revolving fund revolving loan account 
43.21 	established under section 41B.06.
43.22 	(e) Disaster recovery loans under this program will be made using money in the 
43.23 	disaster recovery revolving fund established under subdivision 2 revolving loan account 
43.24 	established under section 41B.06.
43.25 	(f) Repayments of financial assistance under this section, including principal and 
43.26 	interest, must be deposited into the revolving loan account established under section 
43.27 	41B.06.

43.28 	Sec. 53. Minnesota Statutes 2006, section 41B.055, is amended to read:
43.29 	41B.055 LIVESTOCK EQUIPMENT PILOT LOAN PROGRAM.
43.30 		Subdivision 1.Establishment. The authority must establish and implement 
43.31 	a livestock equipment pilot loan program to help finance the first purchase of 
43.32 	livestock-related equipment and make livestock facilities improvements.
43.33 		Subd. 2.Eligibility. Notwithstanding section 41B.03, to be eligible for this program 
43.34 	a borrower must:
44.1 	(1) be a resident of Minnesota or general partnership or a family farm corporation, 
44.2 	authorized farm corporation, family farm partnership, or authorized farm partnership as 
44.3 	defined in section 500.24, subdivision 2;
44.4 	(2) be the principal operator of a livestock farm;
44.5 	(3) have a total net worth, including assets and liabilities of the borrower's spouse 
44.6 	and dependents, no greater than the amount stipulated in section 41B.03, subdivision 3;
44.7 	(4) demonstrate an ability to repay the loan; and
44.8 	(5) hold an appropriate feedlot registration or be using the loan under this program 
44.9 	to meet registration requirements. In addition to the requirements in clauses (1) to (5), 
44.10 	preference must be given to applicants who have farmed less than ten years as evidenced 
44.11 	by their filing of schedule F in their federal tax returns.
44.12 		Subd. 3.Loans. (a) The authority may participate in a livestock equipment loan 
44.13 	equal to 90 percent of the purchased equipment value with an eligible lender to a farmer 
44.14 	who is eligible under subdivision 2. Participation is limited to 45 percent of the principal 
44.15 	amount of the loan or $40,000, whichever is less. The interest rates and repayment terms 
44.16 	of the authority's participation interest may differ from the interest rates and repayment 
44.17 	terms of the lender's retained portion of the loan, but the authority's interest rate must 
44.18 	not exceed three percent. The authority may review the interest annually and make 
44.19 	adjustments as necessary.
44.20 	(b) Standards for loan amortization must be set by the Rural Finance Authority and 
44.21 	must not exceed seventen years.
44.22 	(c) Security for a livestock equipment loan must be a personal note executed by the 
44.23 	borrower and whatever other security is required by the eligible lender or the authority.
44.24 	(d) Refinancing of existing debt is not an eligible purpose.
44.25 	(e) The authority may impose a reasonable, nonrefundable application fee for 
44.26 	a livestock equipment loan. The authority may review the fee annually and make 
44.27 	adjustments as necessary. The initial application fee is $50. Application fees received by 
44.28 	the authority must be deposited in the revolving loan account established in section 41B.06.
44.29 	(f) Loans under this program must be made using money in the revolving loan 
44.30 	account established in section 41B.06.
44.31 		Subd. 4.Eligible expenditures. Money may be used for loans for the acquisition of 
44.32 	equipment for animal housing, confinement, animal feeding, milk production, and waste 
44.33 	management, including the following, if related to animal husbandry:
44.34 	(1) fences;
44.35 	(2) watering facilities;
44.36 	(3) feed storage and handling equipment;
45.1 	(4) milking parlors;
45.2 	(5) milking equipment;
45.3 	(6) scales;
45.4 	(7) milk storage and cooling facilities;
45.5 	(8) manure pumping and storage facilities; and
45.6 	(9) capital investment in pasture.;
45.7 	(10) hoop barns;
45.8 	(11) portable structures;
45.9 	(12) hay and forage equipment; and
45.10 	(13) related structural work for the installation of equipment.

45.11 	Sec. 54. Minnesota Statutes 2006, section 41B.06, is amended to read:
45.12 	41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.
45.13 	There is established in the rural finance administration fund a Rural Finance 
45.14 	Authority revolving loan account that is eligible to receive appropriations and the transfer 
45.15 	of loan funds from other programs. All repayments of financial assistance granted from 
45.16 	this account, including principal and interest, must be deposited into this account. Interest 
45.17 	earned on money in the account accrues to the account, and the money in the account 
45.18 	is appropriated to the commissioner of agriculture for purposes of the Rural Finance 
45.19 	Authority livestock equipment, methane digester, disaster recovery, and value-added 
45.20 	agricultural product loan programs, including costs incurred by the authority to establish 
45.21 	and administer the programs.

45.22 	Sec. 55. Minnesota Statutes 2006, section 41C.05, subdivision 2, is amended to read:
45.23 		Subd. 2.Eligibility; beginning farmers. The authority shall provide in the 
45.24 	agricultural development bond beginning farmer and agricultural business enterprise loan 
45.25 	program that a mortgage or a contract on behalf of a beginning farmer may be provided if 
45.26 	the borrower qualifies under authority rules and under federal tax law governing qualified 
45.27 	small issue bonds and must:
45.28 	(1) be a resident of Minnesota;
45.29 	(2) have sufficient education, training, or experience in the type of farming for 
45.30 	which the loan is desired;
45.31 	(3) have a low or moderate net worth, as defined in section 41C.02, subdivision 12; 
45.32 	(4) certify that the agricultural land to be purchased will be used by the borrower 
45.33 	for agricultural purposes;
45.34 	(5) certify that farming will be the principal occupation of an individual borrower;
46.1 	(6) agree to participate in a farm management program approved by the 
46.2 	commissioner of agriculture for at least the first fivethree years of the loan, if an approved 
46.3 	program is available within 45 miles from the borrower's residence. The commissioner 
46.4 	may waive this requirement for any of the programs administered by the authority if the 
46.5 	participant requests a waiver and provides justification; and
46.6 	(7) agree to file an approved soil and water conservation plan with the Soil 
46.7 	Conservation Service office in the county where the land is located.

46.8 	Sec. 56. Minnesota Statutes 2006, section 116.0714, is amended to read:
46.9 	116.0714 NEW OPEN AIR SWINE BASINS.
46.10 	After May 18, 2002, The commissioner of the Pollution Control Agency or a county 
46.11 	board shall not approve any permits for the construction of new open air swine basins, 
46.12 	except that existing facilities may use one basin of less than 1,000,000 gallons as part 
46.13 	of a permitted waste treatment program for resolving pollution problems or to allow 
46.14 	conversion of an existing basin of less than 1,000,000 gallons to a different animal type, 
46.15 	provided all standards are met. This section expires June 30, 2007 2012.

46.16 	Sec. 57. Minnesota Statutes 2006, section 116O.09, subdivision 2, is amended to read:
46.17 		Subd. 2.Duties. (a) In addition to the duties and powers assigned to the institutes in 
46.18 	section 116O.08, the Agricultural Utilization Research Institute shall: 
46.19 	(1) identify development opportunities for agricultural products;
46.20 	(2) implement a program that identifies techniques to meet those opportunities;
46.21 	(3) monitor and coordinate research among the public and private organizations and 
46.22 	individuals specifically addressing procedures to transfer new technology to businesses, 
46.23 	farmers, and individuals;
46.24 	(4) provide research grants to public and private educational institutions and other 
46.25 	organizations that are undertaking basic and applied research to promote the development 
46.26 	of emerging agricultural industries;
46.27 	(5) assist organizations and individuals with market analysis and product marketing 
46.28 	implementations;
46.29 	(6) to the extent possible earn and receive revenue from contracts, patents, licenses, 
46.30 	royalties, grants, fees-for-service, and memberships;
46.31 	(7) work with the Department of Agriculture, the United States Department of 
46.32 	Agriculture, the Department of Employment and Economic Development, and other 
46.33 	agencies to maximize marketing opportunities locally, nationally, and internationally; and
47.1 	(8) leverage available funds from federal, state, and private sources to develop new 
47.2 	markets and value added opportunities for Minnesota agricultural products.
47.3 	(b) The Agricultural Utilization Research Institute board of directors shall have 
47.4 	the sole approval authority for establishing agricultural utilization research priorities, 
47.5 	requests for proposals to meet those priorities, awarding of grants, hiring and direction 
47.6 	of personnel, and other expenditures of funds consistent with the adopted and approved 
47.7 	mission and goals of the Agricultural Utilization Research Institute. The actions and 
47.8 	expenditures of the Agricultural Utilization Research Institute are subject to audit. The 
47.9 	institute shall annually report by February 1 to the senate and house of representatives 
47.10 	standing committees with jurisdiction over agricultural policy and funding. The report 
47.11 	must list projects initiated, progress on projects, and financial information relating to 
47.12 	expenditures, income from other sources, and other information to allow the committees 
47.13 	to evaluate the effectiveness of the institute's activities.
47.14 	(c) The Agricultural Utilization Research Institute shall convene a Renewable 
47.15 	Energy Roundtable, the purpose of which shall be to further the state's leadership on 
47.16 	bioenergy issues.
47.17 	(i) The Renewable Energy Roundtable shall consist of one representative appointed 
47.18 	by the commissioner of the Minnesota Department of Agriculture, one appointed by the 
47.19 	commissioner of the Minnesota Department of Commerce, one appointed by the chancellor 
47.20 	of the Minnesota State Colleges and Universities, and one appointed by the president of 
47.21 	the University of Minnesota. The appointees must have expertise relevant to bioenergy.
47.22 	(ii) The board shall oversee the activities and shall provide staff to assist the 
47.23 	Renewable Energy Roundtable.
47.24 	(iii) The Renewable Energy Roundtable will engage professionals and experts from 
47.25 	private, government, academic, and nonprofit entities across the state to identify bioenergy 
47.26 	opportunities and collaborate with a broad group of interested parties to identify future 
47.27 	alternative courses of action the state can take to sustain a long-term competitive position 
47.28 	in renewable energy through the year 2025. The Renewable Energy Roundtable will 
47.29 	consult, advise, and review projects and initiatives funded by the state as directed by the 
47.30 	administration and the legislature.

47.31 	Sec. 58. Minnesota Statutes 2006, section 239.7911, subdivision 1, is amended to read:
47.32 		Subdivision 1.Petroleum replacement goal. The tiered petroleum replacement 
47.33 	goal of the state of Minnesota is that:
47.34 	(1) at least 20 percent of the liquid fuel sold in the state is derived from renewable 
47.35 	sources by December 31, 2015; and
48.1 	(2) at least 25 percent of the liquid fuel sold in the state is derived from renewable 
48.2 	sources by December 31, 2025.

48.3 	Sec. 59. Minnesota Statutes 2006, section 327.201, is amended to read:
48.4 	327.201 STATE FAIR  AND COUNTY FAIR CAMPING AREA AREAS.
48.5 		Subdivision 1.State Fair camping areas.  Notwithstanding sections 327.14 to 
48.6 	327.28 or any rule adopted by the commissioner of health, the State Agricultural Society 
48.7 	must operate and maintain a camping area on the State Fairgrounds during the State 
48.8 	Fair and the Minnesota Street Rod Association's Back to the 50's event, subject to the 
48.9 	following conditions:
48.10 	(1) recreational camping vehicles and tents, including their attachments, must be 
48.11 	separated from each other and from other structures by at least seven feet;
48.12 	(2) a minimum area of 300 square feet per site must be provided and the total number 
48.13 	of sites must not exceed one site for every 300 square feet of usable land area; and
48.14 	(3) each site must face a driveway at least 16 feet in width and each driveway must 
48.15 	have unobstructed access to a public roadway.
48.16 		Subd. 2.County fair camping areas.  Notwithstanding sections 327.14 to 327.28, 
48.17 	or any rule adopted by the commissioner of health, any area maintained by a county 
48.18 	agricultural society as a camping area during a county fair or any other event is subject to 
48.19 	the conditions specified in subdivision 1, clauses (1) to (3).

48.20 	Sec. 60. Minnesota Statutes 2006, section 343.10, is amended to read:
48.21 	343.10 COUNTY AND DISTRICT SOCIETIES.
48.22 	A county society for the prevention of cruelty to animals may be formed in any 
48.23 	county and a district society for the prevention of cruelty to animals may be formed in 
48.24 	any group of two or more contiguous or noncontiguous counties or parts of counties 
48.25 	by not less than seven incorporators. County and district societies shall be created as 
48.26 	corporations under chapter 317A and as provided in the bylaws of the state federation.
48.27 	No county or district society may conduct investigations outside the boundaries of the 
48.28 	county or counties included in the county or district society.

48.29 	Sec. 61. COMMISSIONER TO EVALUATE AND REPORT.
 48.30 	By March 1, 2008, the commissioner of agriculture in consultation with the 
48.31 	commissioner of health and the University of Minnesota shall evaluate the potential 
48.32 	hazards posed by plants to retail consumers and livestock, and report the findings to 
49.1 	the standing committees of the senate and the house of representatives with jurisdiction 
49.2 	over agriculture policy. 

49.3 	Sec. 62. WASTE PESTICIDE TASK FORCE, REPORT.
 49.4 	The commissioner of agriculture shall convene a waste pesticide task force to review 
49.5 	all aspects of the waste pesticide collection issue and develop a comprehensive approach 
49.6 	to equitably and efficiently collect waste pesticides statewide. The task force shall include 
49.7 	a representative of each of the following organizations: the house of representatives, 
49.8 	as appointed by the chair of the house committee with jurisdiction over agriculture 
49.9 	finance; the senate, as appointed by the chair of the senate committee with jurisdiction 
49.10 	over agriculture finance; the departments of agriculture; the department of pollution 
49.11 	control; the Minnesota Solid Waste Administrators Association; the metropolitan Solid 
49.12 	Waste Management Coordinating Board; the Association of Minnesota Counties; the 
49.13 	Minnesota Farm Bureau; and the Minnesota Farmers Union. The task force must have 
49.14 	three additional members representing Minnesota pesticide registrants, distributors, and 
49.15 	retailers, respectively, as appointed by the commissioner. Public members of the task force 
49.16 	must serve without compensation or reimbursement of personal expenses. No later than 
49.17 	January 5, 2008, the commissioner of agriculture shall present the task force's findings 
49.18 	and specific recommendations to the house and senate committees with jurisdiction over 
49.19 	agriculture finance. 

49.20 	Sec. 63. WASTE PESTICIDE COLLECTION, DISPOSAL.
 49.21 	Notwithstanding section 18B.26, subdivision 2, the commissioner of agriculture 
49.22 	shall spend at least $600,000 in fiscal year 2009 from the pesticide regulatory account 
49.23 	for the purposes of the waste pesticide collection program. During fiscal year 2009, the 
49.24 	commissioner shall provide an opportunity for residents to dispose of waste residential 
49.25 	and agricultural pesticides in each county where the commissioner has not provided an 
49.26 	opportunity for persons to dispose of waste pesticides within county boundaries during the 
49.27 	previous two fiscal years.

49.28 	Sec. 64. RESIDENTIAL ANTIMICROBIAL PESTICIDE APPLICATOR 
49.29 	LICENSE STUDY.
 49.30 	(a) The commissioners of agriculture and health must study the development 
49.31 	and implementation of a new category of license for commercial pesticide applicators 
49.32 	who apply antimicrobial pesticides for hire to mitigate or remediate mold in homes, 
49.33 	apartments, or other residences. The commissioners must seek and obtain consultation 
50.1 	with representatives of the University of Minnesota qualified in mold and other fungal 
50.2 	microbe pest control. They shall prepare a report which must include: 
50.3 	(1) a discussion of existing federal and state laws and rules, if any, that govern 
50.4 	commercial residential antimicrobial pesticide mold control applicators; 
50.5 	(2) a literature review on the need for, and efficacy of, antimicrobial pesticides used 
50.6 	in residential settings for mold control and any potential dangers posed by the residential 
50.7 	application of these products, particularly to young children and other sensitive persons; 
50.8 	(3) a survey of the law and process, if any, for licensing commercial residential 
50.9 	antimicrobial pesticide mold control applicators in the rest of the United States; and
50.10 	(4) recommended procedures for licensing prospective residential antimicrobial 
50.11 	pesticide mold control applicators in Minnesota, highlighting provisions that test the 
50.12 	applicant's understanding of the efficacy of antimicrobial pesticides and methods for 
50.13 	mitigating any potential dangers discovered in the review required in clause (2).
50.14 	(b) No later than December 1, 2007, the commissioners shall report the results of 
50.15 	the study described in paragraph (a) and an implementation plan to the house and senate 
50.16 	committees with jurisdiction over agricultural policy and finance and environmental 
50.17 	health.

50.18 	Sec. 65. ANIMAL HUSBANDRY WORKING GROUP.
 50.19 	(a) The commissioner of agriculture, in consultation with the chairs of the house and 
50.20 	senate agriculture policy and finance committees, shall appoint a balanced working group 
50.21 	of at least seven members who represent stakeholders in animal husbandry. Appointees 
50.22 	shall consist of at least one member each who currently provides the services listed in 
50.23 	paragraph (b), none of whom is a veterinarian. Appointees shall also include at least one 
50.24 	member who represents the Board of Veterinary Medicine as well as at least one member 
50.25 	who is a licensed and practicing veterinarian.
50.26 	(b) The animal husbandry working group shall meet to study and prepare a report 
50.27 	to the legislature regarding standards, training, and qualifications for persons providing 
50.28 	the following animal husbandry services throughout Minnesota: equine teeth floating; 
50.29 	animal chiropractic; and artificial insemination of animals other than cattle and swine. The 
50.30 	working group shall report its findings to the agriculture policy and finance committees of 
50.31 	the house and senate by January 15, 2008. The commissioner may provide staff support to 
50.32 	assist the working group in its study and preparation of the report.
50.33 	(c) Until June 1, 2008, except in cases of malpractice or complaints, the Board of 
50.34 	Veterinary Medicine is prohibited from taking action for practicing without a license 
51.1 	against persons who provide any of the services listed in paragraph (b) and were providing 
51.2 	that service prior to January 1, 2005.

51.3 	Sec. 66.  REPEALER.
 51.4 	Minnesota Statutes 2006, sections 17.109; 18B.315; 18C.425, subdivision 5; 32.213; 
51.5 	35.08; 35.09; 35.10; 35.11; 35.12; 41A.09, subdivision 9; and 41B.043, subdivision 1a,
51.6 	are repealed.
51.7 	(b) Minnesota Rules, parts 1705.0840; 1705.0850; 1705.0860; 1705.0870; 
51.8 	1705.0880; 1705.0890; 1705.0900; 1705.0910; 1705.0920; 1705.0930; 1705.0940; 
51.9 	1705.0950; 1705.0960; 1705.0970; 1705.0980; 1705.0990; 1705.1000; 1705.1010; 
51.10 	1705.1020; 1705.1030; 1705.1040; 1705.1050; 1705.1060; 1705.1070; 1705.1080; 
51.11 	1705.1086; 1705.1087; and 1705.1088, are repealed.

51.12 	ARTICLE 2
51.13 	VETERANS AFFAIRS

51.14	Section 1. VETERANS AFFAIRS
 	$
	12,855,000
	$
	12,571,000

51.15	Appropriations by Fund
	
51.16		2008
	2009
	
51.17	General
	12,517,000
	12,233,000
	
51.18	Special Revenue
	338,000
	338,000
	
51.19 	(a) $1,000,000 each year is added to the base 
51.20 	for state soldier's assistance under Minnesota 
51.21 	Statutes, section 197.05.
51.22 	(b) $750,000 the first year and $750,000 
51.23 	the second year are added to the base for 
51.24 	grants to counties under the terms of this 
51.25 	section. The commissioner shall issue a 
51.26 	request for proposals for grants to enhance 
51.27 	the benefits, programs, and services provided 
51.28 	to veterans. The request must specify that 
51.29 	priority will be given to proposals that meet 
51.30 	the programmatic goals established by the 
51.31 	commissioner, including proposals that will:
51.32 	(1) provide the most effective outreach to 
51.33 	veterans;
52.1 	(2) reintegrate combat veterans into society;
52.2 	(3) collaborate with other social service 
52.3 	agencies, educational institutions, and other 
52.4 	relevant community resources;
52.5 	(4) reduce homelessness among veterans; 
52.6 	and
52.7 	(5) provide measurable outcomes.
52.8 	The commissioner may provide incentives 
52.9 	to encourage, and may give priority to 
52.10 	proposals that foster, regional collaboration 
52.11 	for service delivery. The grants may be for a 
52.12 	term of up to two years. The commissioner 
52.13 	shall ensure that grants are made throughout 
52.14 	all regions of the state and shall develop a 
52.15 	description of best practices for the use of 
52.16 	these grants. A county may not reduce its 
52.17 	county veterans service officer budget by any 
52.18 	amount received as a grant under this section. 
52.19 	Grants made under this section are in addition 
52.20 	to and not subject to the requirements for 
52.21 	grants made under Minnesota Statutes, 
52.22 	section 197.608. The Minnesota Association 
52.23 	of County Veterans Service Officers may 
52.24 	apply for grants under this section beginning 
52.25 	July 1, 2007. Any balance remaining after 
52.26 	the first year does not cancel and is available 
52.27 	in the second year. This appropriation must 
52.28 	be included in the appropriation base through 
52.29 	fiscal year 2011.
52.30 	(c) $750,000 each year is for tribal veterans 
52.31 	services offices. 
52.32 	(d) $750,000 each year is for a grant to the 
52.33 	Minnesota Assistance Council for Veterans. 
52.34 	This is a onetime appropriation.
53.1 	(e) $200,000 each year is for marketing 
53.2 	veterans outreach programs. This is a 
53.3 	onetime appropriation.
53.4 	(f) $250,000 each year is added to the base 
53.5 	for grants to Disabled American Veterans, 
53.6 	Military Order of the Purple Heart, Veterans 
53.7 	of Foreign Wars, Vietnam Veterans of 
53.8 	America, and other congressionally chartered 
53.9 	veterans service organizations designated by 
53.10 	the commissioner.
53.11 	(g) $450,000 the first year and $450,000 
53.12 	the second year are for the higher education 
53.13 	veterans assistance program under Minnesota 
53.14 	Statutes, section 197.585. This appropriation 
53.15 	must be included in the agency appropriation 
53.16 	base through fiscal year 2011.
53.17 	(h) $100,000 each year is for information 
53.18 	technology.
53.19 	(i) $75,000 each year is for operations at the 
53.20 	Minnesota State Veterans Cemetery in Little 
53.21 	Falls.
53.22 	(j) $250,000 each year is for administration 
53.23 	of veterans programming. This appropriation 
53.24 	includes money for the biennium for 
53.25 	an ombudsman for residents and family 
53.26 	members of residents at the Minneapolis 
53.27 	Veterans' Home. The ombudsman must 
53.28 	attend all meetings of the Veterans Homes 
53.29 	Board and provide a report at each 
53.30 	meeting regarding the status of concerns 
53.31 	communicated to the ombudsman.
53.32 	(k) $100,000 each year is for compensation 
53.33 	for honor guards at the funerals of veterans 
53.34 	in accordance with the program established 
54.1 	in Minnesota Statutes, section 197.231. This 
54.2 	is a onetime appropriation.
54.3 	(l) $52,000 the first year is for spousal 
54.4 	education benefits in accordance with 
54.5 	Minnesota Statutes, section 197.75. This 
54.6 	appropriation is available until June 30, 2009.
54.7 	(m) $100,000 each year is for information 
54.8 	and outreach regarding the availability of 
54.9 	depleted uranium testing. The commissioner 
54.10 	shall collaborate with the adjutant general 
54.11 	to identify service members and veterans 
54.12 	who may have been exposed to expended 
54.13 	depleted uranium and to provide them with 
54.14 	information regarding depleted uranium 
54.15 	screening services provided by the federal 
54.16 	government. This is a onetime appropriation.
54.17 	(n) $250,000 the first year is for grants to 
54.18 	assist World War II veterans in attending the 
54.19 	dedication of the Minnesota World War II 
54.20 	Memorial in St. Paul on June 9, 2007, and for 
54.21 	other expenses of the dedication event. The 
54.22 	commissioner may spend only that portion 
54.23 	of this sum for which a matching amount, 
54.24 	whether in cash or in kind, is donated by 
54.25 	nongovernmental sources for this purpose. 
54.26 	This appropriation is available immediately. 
54.27 	(o) $80,000 the first year is for suicide 
54.28 	prevention and psychological support for 
54.29 	veterans. Of this amount, $50,000 is for a 
54.30 	study by the commissioner and the adjutant 
54.31 	general of the psychological status and 
54.32 	needs of returning Minnesota veterans, 
54.33 	and $30,000 is for a telephone hotline to 
54.34 	refer veterans to available psychological 
54.35 	counseling services. The commissioner 
55.1 	may use this appropriation to supplement 
55.2 	an existing informational hotline service 
55.3 	within the department, or may collaborate 
55.4 	with any other provider of compatible, 
55.5 	existing hotline services for this purpose. 
55.6 	The referral hotline must be available to 
55.7 	veterans statewide at all practicable hours. 
55.8 	The commissioner must broadly publicize 
55.9 	the availability of the telephone hotline 
55.10 	and any local, state, and federal counseling 
55.11 	services for Minnesota veterans using all 
55.12 	practicable means available, including but 
55.13 	not limited to: the agency Web site; local 
55.14 	media announcements; announcements in 
55.15 	service and trade publications; and any other 
55.16 	practical means of communication.
55.17 	The commissioner may spend up to two 
55.18 	percent of this appropriation for development 
55.19 	of special informational materials, such 
55.20 	as refrigerator magnets, wallet cards, and 
55.21 	other devices on which hotline numbers 
55.22 	may be kept for immediate use. The 
55.23 	commissioner also may accept and spend 
55.24 	other contributions from nongovernmental 
55.25 	sources for this purpose. This is a onetime 
55.26 	appropriation.
55.27 	(p) $338,000 each year is from the account 
55.28 	in the special revenue fund established in 
55.29 	Minnesota Statutes, section 190.19, for (1) 
55.30 	grants to veterans service organizations; and 
55.31 	(2) outreach to underserved veterans. Any 
55.32 	balance in the first year does not cancel and 
55.33 	is available in the second year.

55.34 	Sec. 2. [197.231] HONOR GUARDS.
56.1 	The commissioner of veterans affairs shall pay, within available funds and upon 
56.2 	request by a local unit of a congressionally chartered veterans organization or its auxiliary, 
56.3 	up to $50 to the local unit for each time that local unit provides an honor guard detail at 
56.4 	the funeral of a deceased veteran. The commissioner may give priority to local units that 
56.5 	do not have charitable gambling operations. If the local unit provides a student to play 
56.6 	"Taps," the local unit may pay some or all of the $50 to the student.

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

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

58.24 	Sec. 4. Minnesota Statutes 2006, section 198.002, subdivision 2, is amended to read:
58.25 		Subd. 2.Membership. The board consists of nine voting members appointed by the 
58.26 	governor with the advice and consent of the senate. The members of the board shall fairly 
58.27 	represent the geographic areas of the state. The members are:
58.28 	(1) a chair, who must be designated by the governor, and who must be a veteran as 
58.29 	that term is defined in section 197.447; and
58.30 	(2) three eight public members experienced in policy formulation with professional 
58.31 	experience in health care delivery; and.
58.32 	(3)At least five members experienced in policy formulation with professional 
58.33 	experience in health care delivery who are must be members of congressionally chartered 
58.34 	veterans organizations or their auxiliaries that have a statewide organizational structure 
58.35 	and state level officers in Minnesota.
59.1 	The commissioner of veterans affairs shall serve as an ex officio, nonvoting member 
59.2 	of the board. From each house of the legislature, the chair of the committee that deals 
59.3 	with veterans affairs or the chair's designee shall serve as an ex officio, nonvoting member 
59.4 	if that person is a veteran of the board.

59.5 	Sec. 5. Minnesota Statutes 2006, section 198.004, subdivision 1, is amended to read:
59.6 		Subdivision 1.Appointment. (a) The board shall appoint an executive director. The 
59.7 	executive director shall serve in the unclassified service at the pleasure of the board. The 
59.8 	executive director must be a resident of the state of Minnesota, a and citizen of the United 
59.9 	States, and. Preferably, the executive director shall be a veteran as that term is defined 
59.10 	in section 197.447, but it is not required that the person be a veteran. The executive 
59.11 	director shall serve as secretary of the board. 
59.12 	(b) When selecting an executive director, the board shall give preference to qualified 
59.13 	applicants who are veterans by initially placing only the names of qualified applicants 
59.14 	who are veterans on the selection list for final consideration. If the list contains fewer 
59.15 	than three qualified applicants who are veterans, the names of qualified applicants who 
59.16 	are not veterans shall be added to the list. The board shall then select the most qualified 
59.17 	applicant from the list. At any point in the executive director selection process, if the 
59.18 	board concludes that no applicant is sufficiently qualified for the position, the board may 
59.19 	reopen the application process.

59.20 	Sec. 6. PSYCHOLOGICAL COUNSELING SERVICES REPORT.
 59.21 	By November 1, 2007, the commissioner of veterans affairs and the adjutant general 
59.22 	of the National Guard, in consultation with relevant policy personnel and professional 
59.23 	staff of the Minnesota Veterans Homes Board and the United States Department of 
59.24 	Veterans Affairs, shall jointly report to the chair and ranking minority member of each 
59.25 	committee in the senate and house of representatives with jurisdiction over the policy or 
59.26 	finance of veterans affairs and military affairs regarding the psychological status and 
59.27 	needs of soldiers and veterans returning to Minnesota after having served in support of 
59.28 	contingency operations for Operation Enduring Freedom and Operation Iraqi Freedom.
59.29 	The report must provide the best relevant insights into and advice concerning how 
59.30 	to most effectively provide the psychological support services determined to be needed 
59.31 	by those soldiers and veterans. The report shall also provide an overview and discussion 
59.32 	of the types of federal, state, and local mental health resources available to soldiers and 
59.33 	veterans throughout the state, with particular emphasis on the role and capabilities of 
60.1 	the mental health facility under planning by the Minnesota Veterans Homes Board in 
60.2 	Kandiyohi County.

60.3 	ARTICLE 3
60.4 	MILITARY AFFAIRS

60.5	Section 1. MILITARY APPROPRIATIONS.
 	
60.6 	The sums shown in the columns marked "Appropriations" are appropriated to the 
60.7 	agencies and for the purposes specified in this article.  The appropriations are from the 
60.8 	general fund, or another named fund, and are available for the fiscal years indicated 
60.9 	for each purpose.  The figures "2008" and "2009" used in this article mean that the 
60.10 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
60.11 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
60.12 	year 2009. "The biennium" is fiscal years 2008 and 2009.

60.13				APPROPRIATIONS
	
60.14				Available for the Year
	
60.15				Ending June 30
	
60.16					2008
		2009

60.17	Sec. 2. MILITARY AFFAIRS

60.18	Subdivision 1.Total Appropriation
 	$
	21,161,000
	$
	19,362,000

60.19	Appropriations by Fund
	
60.20		2008
	2009
	
60.21	General
	20,823,000
	19,024,000
	
60.22	Special Revenue
	338,000
	338,000
	
60.23 	The amounts that may be spent for each 
60.24 	purpose are specified in the following 
60.25 	subdivisions.

60.26	Subd.  2.Maintenance of Training Facilities
 		6,837,000
		6,660,000
	
60.27 	$185,000 the first year is to pay special 
60.28 	assessments levied against state property. 
60.29 	This is a onetime appropriation.

60.30	Subd.  3.General Support
 		4,114,000
		2,489,000

60.31	Appropriations by Fund
	
60.32	General
	3,776,000
	2,151,000
	
60.33	Special Revenue
	338,000
	338,000
	
61.1 	$1,500,000 the first year is for the Minnesota 
61.2 	National Guard reintegration program. This 
61.3 	is a onetime appropriation and is available 
61.4 	until spent.
61.5 	$338,000 the first year and $338,000 the 
61.6 	second year are from the "Support Our 
61.7 	Troops" account in the special revenue fund 
61.8 	established in Minnesota Statutes, section 
61.9 	190.19, for grants under that section.
61.10 	$150,000 the first year is for predesign and 
61.11 	design of a new facility for the Starbase 
61.12 	Minnesota program. This appropriation is 
61.13 	available until spent.
61.14 	$25,000 the first year is for a longitudinal 
61.15 	study measuring improvement in academic 
61.16 	achievement as a result of participation in the 
61.17 	Starbase program.
61.18 	$30,000 each year is for payments of honor 
61.19 	guards as provided in Minnesota Statutes, 
61.20 	section 192.382.

61.21	Subd. 4.Enlistment Incentives
 		10,210,000
		10,213,000
	
61.22 	If appropriations for either year of the 
61.23 	biennium are insufficient, the appropriation 
61.24 	from the other year is available. The 
61.25 	appropriations for enlistment incentives are 
61.26 	available until expended.

61.27 	Sec. 3. [192.382] HONOR GUARDS.
61.28 	The adjutant general may activate members to serve as an honor guard at the funeral 
61.29 	of any person who served in the Minnesota National Guard and who was: (1) honorably 
61.30 	discharged after serving six or more years, or (2) in active service. Members activated for 
61.31 	service as honor guards must be paid at the rate provided in section 192.49, subdivision 1 
61.32 	or 2.

61.33 	Sec. 4. [192.503] AMATEUR ATHLETICS.
62.1 	(a) If a Minnesota resident who is a member of the Minnesota National Guard or 
62.2 	any other reserve unit of the United States Armed Forces is a qualified member of a team 
62.3 	governed by an amateur athletic association in this state upon being ordered into active 
62.4 	military service, as defined in section 190.05, subdivision 5b or 5c, then that person is 
62.5 	a qualified member of that team and association during periodic leave and upon release 
62.6 	or discharge from that active military service, irrespective of the length of time that the 
62.7 	person has served in that active military service, and the member must be given the same 
62.8 	eligibility status and consideration for participation in both regular and post-season play 
62.9 	by the team and association as if the member had been present and participating in play 
62.10 	during the entire period of the person's military service. 
62.11 	(b) This section does not apply to public or private high schools or postsecondary 
62.12 	educational institutions.

62.13 	EFFECTIVE DATE. This section is effective the day following enactment and 
62.14 	applies to any member of the National Guard or other military reserves who has been 
62.15 	ordered into active military service at any time.

62.16 	Sec. 5. [192.515] NATIONAL GUARD NONAPPROPRIATED FUND 
62.17 	INSTRUMENTALITY.
62.18 		Subdivision 1.Establishment. The adjutant general may establish a Minnesota 
62.19 	National Guard Nonappropriated Fund Instrumentality to create, operate, and maintain 
62.20 	morale, welfare, and recreation facilities and activities at Camp Ripley and other property 
62.21 	owned, leased, or otherwise controlled by the Minnesota National Guard.
62.22 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
62.23 	(b) "Instrumentality" means the Minnesota National Guard Nonappropriated Fund 
62.24 	Instrumentality.
62.25 	(c) "Morale, welfare, and recreation facility or activity" refers to a facility or activity 
62.26 	intended to provide recreational opportunities, promote unit and individual morale, and 
62.27 	generally improve the welfare of Minnesota National Guard personnel at Camp Ripley or 
62.28 	other properties owned, leased, or otherwise controlled by the Minnesota National Guard. 
62.29 	It does not include facilities or services provided by the Army and Air Force Exchange 
62.30 	Service. It also does not include facilities or services provided by other instrumentalities 
62.31 	through the use of appropriated funds.
62.32 		Subd. 3.Use of National Guard lands. The adjutant general may authorize 
62.33 	Minnesota National Guard lands and facilities to be used in support of morale, welfare, 
62.34 	and recreation activities under this section. That use must not interfere with military 
62.35 	operations or training.
63.1 		Subd. 4.Funds. (a) Except as otherwise specifically authorized in this section, 
63.2 	no general fund money or other state funds may be deposited in any of the funds and 
63.3 	accounts established under this section.
63.4 	(b) The instrumentality is authorized to accept donations or gifts from public or 
63.5 	private sources for purposes authorized under this section, including, but not limited 
63.6 	to, federal funds made available to the National Guard for related activities and money 
63.7 	received from recycling activities to the extent authorized by federal regulation.
63.8 	(c) Money received from operation of activities under this section, including, but 
63.9 	not limited to, user fees and rental charges must be deposited and managed consistent 
63.10 	with this subdivision.
63.11 	(d) The adjutant general may transfer funds from any existing morale, welfare, or 
63.12 	recreation fund outside the state treasury to the instrumentality.
63.13 	(e) Money received by the instrumentality must be deposited in the Minnesota 
63.14 	National Guard morale, welfare, and recreation fund. The Minnesota National Guard 
63.15 	morale, welfare, and recreation fund is established outside the state treasury. The adjutant 
63.16 	general may spend money in the fund for morale, welfare, or recreation facilities or 
63.17 	activities as authorized by this section.
63.18 	(f) Accounts or funds created under this section must be audited annually by officers 
63.19 	of the military forces detailed by the adjutant general as military auditors.
63.20 		Subd. 5.Rules. The adjutant general must adopt rules for the establishment, 
63.21 	management, and operation of the instrumentality consistent with this section.

63.22 	Sec. 6. BOND SALE AUTHORIZATION REDUCED.
 63.23 	The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, 
63.24 	is reduced by $150,000.

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

63.26 	Sec. 7.  REPEALER.
 63.27 	Laws 2006, chapter 258, section 14, subdivision 6, is repealed.