1.1 	A bill for an act
1.2 	relating to the operation of state government; changing certain provisions and 
1.3 	programs affecting agriculture and veterans affairs; authorizing and regulating 
1.4 	development and use of industrial hemp; clarifying certain terms and procedures; 
1.5 	changing certain record keeping provisions; requiring planning for additional 
1.6 	veterans cemeteries; appropriating money;amending Minnesota Statutes 2008, 
1.7 	sections 1.141, by adding subdivisions; 3.737, subdivision 4; 17.03, by adding a 
1.8 	subdivision; 18B.31, subdivision 5; 18B.36, subdivision 1; 18B.37, subdivision 
1.9 	4; 18J.01; 18J.02; 18J.03; 18J.04, subdivisions 1, 2, 3, 4; 18J.05, subdivisions 
1.10 	1, 2, 6; 18J.06; 18J.07, subdivisions 3, 4, 5; 18J.09; 18J.11, subdivision 1, by 
1.11 	adding a subdivision; 28A.082, subdivision 1; 35.244, subdivisions 1, 2; 152.01, 
1.12 	subdivision 9; 197.455, by adding a subdivision; 197.481, subdivisions 1, 2, 4; 
1.13 	197.60, subdivision 1; 197.601; 197.605; 197.606; 197.609, subdivisions 1, 
1.14 	2; 197.75, subdivision 1; 239.092; 239.093; 239.791, by adding subdivisions; 
1.15 	336.9-531; 336A.08, subdivisions 1, 4; 336A.14; 375.30, subdivision 2; 500.221, 
1.16 	subdivisions 2, 4; 500.24, subdivision 2; 514.965, subdivision 2; 514.966, 
1.17 	subdivisions 5, 6, by adding a subdivision; Minnesota Statutes 2009 Supplement, 
1.18 	sections 3.737, subdivision 1; 18B.316, subdivision 10; 190.19, subdivision 2a; 
1.19 	197.46; 239.791, subdivisions 1, 1a; Laws 2007, chapter 45, article 1, section 
1.20 	3, subdivision 5, as amended; Laws 2008, chapter 296, article 1, section 25; 
1.21 	Laws 2009, chapter 94, article 1, section 3, subdivision 5; proposing coding 
1.22 	for new law in Minnesota Statutes, chapter 38; proposing coding for new law 
1.23 	as Minnesota Statutes, chapter 18K; repealing Minnesota Statutes 2008, section 
1.24 	17.231; Laws 2009, chapter 94, article 1, section 106.
1.25 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.26 	ARTICLE 1
1.27 	AGRICULTURE

1.28 	Section 1. Minnesota Statutes 2009 Supplement, section 3.737, subdivision 1, is 
1.29 	amended to read:
1.30 		Subdivision 1.Compensation required. (a) Notwithstanding section 3.736, 
1.31 	subdivision 3, paragraph (e), or any other law, a livestock owner shall be compensated 
2.1 	by the commissioner of agriculture for livestock that is destroyed by a gray wolf or is so 
2.2 	crippled by a gray wolf that it must be destroyed. Except as provided in this section, 
2.3 	the owner is entitled to the fair market value of the destroyed livestock as determined 
2.4 	by the commissioner, upon recommendation of the fair market value by a university 
2.5 	extension agent or a conservation officer. In any fiscal year, a livestock owner may not 
2.6 	be compensated for a destroyed animal claim that is less than $100 in value and may be 
2.7 	compensated up to $20,000, as determined under this section. In any fiscal year, the 
2.8 	commissioner may provide compensation for claims filed under this section up to the 
2.9 	amount expressly appropriated for this purpose.
2.10 	(b) Either the agent or the A conservation officer, an official from the Animal and 
2.11 	Plant Health Inspection Service of the United States Department of Agriculture, or a peace 
2.12 	officer from the county sheriff's office must make a personal inspection of the site and 
2.13 	submit a report to the commissioner detailing the results of the investigation. The agent or 
2.14 	the conservation officer The investigator must take into account factors in addition to a 
2.15 	visual identification of a carcass when making a recommendation to the commissioner. 
2.16 	The commissioner, upon recommendation of the agent or conservation officer investigator, 
2.17 	shall determine whether the livestock was destroyed by a gray wolf and any deficiencies in 
2.18 	the owner's adoption of the best management practices developed in subdivision 5. The 
2.19 	commissioner may authorize payment of claims only if the agent or the conservation 
2.20 	officer has recommended payment. The owner shall file a claim on forms provided by the 
2.21 	commissioner and available at the university extension agent's office.

2.22 	Sec. 2. Minnesota Statutes 2008, section 3.737, subdivision 4, is amended to read:
2.23 		Subd. 4.Payment; denial of compensation. (a) If the commissioner finds that the 
2.24 	livestock owner has shown that the loss of the livestock was likely caused by a gray 
2.25 	wolf, the commissioner shall pay compensation as provided in this section and in the 
2.26 	rules of the department.
2.27 	(b) For a gray wolf depredation claim submitted by a livestock owner after 
2.28 	September 1, 1999, the commissioner shall, based on the report from the university 
2.29 	extension agent and conservation officer, evaluate the claim for conformance with 
2.30 	the best management practices developed by the commissioner in subdivision 5. The 
2.31 	commissioner must provide to the livestock owner an itemized list of any deficiencies 
2.32 	in the livestock owner's adoption of best management practices that were noted in the 
2.33 	university extension agent's or conservation officer's report.
2.34 	(c) (b) If the commissioner denies compensation claimed by an owner under 
2.35 	this section, the commissioner shall issue a written decision based upon the available 
3.1 	evidence. It shall include specification of the facts upon which the decision is based 
3.2 	and the conclusions on the material issues of the claim. A copy of the decision shall 
3.3 	be mailed to the owner.
3.4 	(d) (c) A decision to deny compensation claimed under this section is not subject to 
3.5 	the contested case review procedures of chapter 14, but may be reviewed upon a trial de 
3.6 	novo in a court in the county where the loss occurred. The decision of the court may be 
3.7 	appealed as in other civil cases. Review in court may be obtained by filing a petition for 
3.8 	review with the administrator of the court within 60 days following receipt of a decision 
3.9 	under this section. Upon the filing of a petition, the administrator shall mail a copy to the 
3.10 	commissioner and set a time for hearing within 90 days of the filing.

3.11 	Sec. 3. Minnesota Statutes 2008, section 17.03, is amended by adding a subdivision to 
3.12 	read:
3.13 		Subd. 11a.Permitting efficiency goal and report. (a) It is the goal of the 
3.14 	Department of Agriculture that environmental and resource management permits be 
3.15 	issued or denied within 150 days of the submission of a completed permit application. 
3.16 	The commissioner of agriculture shall establish management systems designed to achieve 
3.17 	the goal.
3.18 	(b) The commissioner shall prepare semiannual permitting efficiency reports that 
3.19 	include statistics on meeting the goal in paragraph (a). The reports are due February 1 
3.20 	and August 1 of each year. For permit applications that have not met the goal, the report 
3.21 	must state the reasons for not meeting the goal, steps that will be taken to complete action 
3.22 	on the application, and the expected timeline. In stating the reasons for not meeting the 
3.23 	goal, the commissioner shall separately identify delays caused by the responsiveness of 
3.24 	the proposer, lack of staff, scientific or technical disagreements, or the level of public 
3.25 	engagement. The report must specify the number of days from initial submission of 
3.26 	the application to the day of determination that the application is complete. The report 
3.27 	for the final quarter of the fiscal year must aggregate the data for the year and assess 
3.28 	whether program or system changes are necessary to achieve the goal. The report must 
3.29 	be posted on the department Web site and submitted to the governor and the chairs of 
3.30 	the house of representatives and senate committees having jurisdiction over agriculture 
3.31 	policy and finance.
3.32 	(c) The commissioner shall allow electronic submission of environmental review 
3.33 	and permit documents to the department.

3.34 	Sec. 4. Minnesota Statutes 2008, section 18B.31, subdivision 5, is amended to read:
4.1 		Subd. 5.Application fee. (a) An application for a pesticide dealer license must be 
4.2 	accompanied by a nonrefundable application fee of $150.
4.3 	(b) If an application for renewal of a pesticide dealer license is not filed before 
4.4 	January 1 of the year for which the license is to be issued expires, an additional fee of $20
4.5 	50 percent of the application fee must be paid by the applicant before the commissioner 
4.6 	may issue the license is issued.

4.7 	Sec. 5. Minnesota Statutes 2009 Supplement, section 18B.316, subdivision 10, is 
4.8 	amended to read:
4.9 		Subd. 10.Application fee. (a) An application for an agricultural pesticide dealer 
4.10 	license, or a renewal of an agricultural pesticide dealer license, must be accompanied 
4.11 	by a nonrefundable fee of $150.
4.12 	(b) If an application for renewal of an agricultural pesticide dealer license is not filed 
4.13 	before January of the year for which the license is to be issued expires, an additional fee of 
4.14 	50 percent of the application fee must be paid by the applicant before the commissioner 
4.15 	may issue the license.

4.16 	Sec. 6. Minnesota Statutes 2008, section 18B.36, subdivision 1, is amended to read:
4.17 		Subdivision 1.Requirement. (a) Except for a licensed commercial or 
4.18 	noncommercial applicator, only a certified private applicator may use a restricted use 
4.19 	pesticide to produce an agricultural commodity:
4.20 	(1) as a traditional exchange of services without financial compensation;
4.21 	(2) on a site owned, rented, or managed by the person or the person's employees; or
4.22 	(3) when the private applicator is one of two or fewer employees and the owner or 
4.23 	operator is a certified private applicator or is licensed as a noncommercial applicator.
4.24 	(b) A private applicator person may not purchase a restricted use pesticide without 
4.25 	presenting a license card, certified private applicator card, or the card number.

4.26 	Sec. 7. Minnesota Statutes 2008, section 18B.37, subdivision 4, is amended to read:
4.27 		Subd. 4.Storage, handling, incident response, and disposal plan. A commercial
4.28 	pesticide dealer, agricultural pesticide dealer, or a commercial, noncommercial, or 
4.29 	structural pest control applicator or the business that the applicator is employed by must 
4.30 	develop and maintain a plan that describes its pesticide storage, handling, incident 
4.31 	response, and disposal practices. The plan must be kept at a principal business site 
4.32 	or location within this state and must be submitted to the commissioner upon request 
5.1 	on forms provided by the commissioner. The plan must be available for inspection by 
5.2 	the commissioner.

5.3 	Sec. 8. Minnesota Statutes 2008, section 18J.01, is amended to read:
5.4 	18J.01 DEFINITIONS.
5.5 	(a) The definitions in sections 18G.02and,18H.02, and 18K.03 apply to this chapter. 
5.6 	(b) For purposes of this chapter, "associated rules" means rules adopted under this 
5.7 	chapter, chapter 18G or, 18H, or 18K, or sections 21.80 to 21.92. 

5.8 	Sec. 9. Minnesota Statutes 2008, section 18J.02, is amended to read:
5.9 	18J.02 DUTIES OF COMMISSIONER.
5.10 	The commissioner shall administer and enforce this chapter, chapters 18G and,
5.11 	18H, and 18K, sections 21.80 to 21.92, and associated rules. 

5.12 	Sec. 10. Minnesota Statutes 2008, section 18J.03, is amended to read:
5.13 	18J.03 CIVIL LIABILITY.
5.14 	A person regulated by this chapter, chapter 18G or, 18H, or 18K, or sections 21.80
5.15 	to 21.92, is civilly liable for any violation of one of those statutes or associated rules by 
5.16 	the person's employee or agent. 

5.17 	Sec. 11. Minnesota Statutes 2008, section 18J.04, subdivision 1, is amended to read:
5.18 		Subdivision 1.Access and entry. The commissioner, upon presentation of official 
5.19 	department credentials, must be granted immediate access at reasonable times to sites 
5.20 	where a person manufactures, distributes, uses, handles, disposes of, stores, or transports 
5.21 	seeds, plants, or other living or nonliving products or other objects regulated under chapter 
5.22 	18G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules. 

5.23 	Sec. 12. Minnesota Statutes 2008, section 18J.04, subdivision 2, is amended to read:
5.24 		Subd. 2.Purpose of entry. (a) The commissioner may enter sites for:
5.25 	(1) inspection of inventory and equipment for the manufacture, storage, handling, 
5.26 	distribution, disposal, or any other process regulated under chapter 18G or, 18H, or 18K, 
5.27 	sections 21.80 to 21.92, or associated rules; 
5.28 	(2) sampling of sites, seeds, plants, products, or other living or nonliving objects that 
5.29 	are manufactured, stored, distributed, handled, or disposed of at those sites and regulated 
5.30 	under chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules; 
6.1 	(3) inspection of records related to the manufacture, distribution, storage, handling, 
6.2 	or disposal of seeds, plants, products, or other living or nonliving objects regulated under 
6.3 	chapter 18G or,  18H, or 18K, sections 21.80 to 21.92, or associated rules; 
6.4 	(4) investigating compliance with chapter 18G or, 18H, or 18K, sections 21.80
6.5 	to 21.92, or associated rules; or 
6.6 	(5) other purposes necessary to implement chapter 18G or, 18H, or 18K, sections 
6.7 	21.80 to 21.92, or associated rules. 
6.8 	(b) The commissioner may enter any public or private premises during or after 
6.9 	regular business hours without notice of inspection when a suspected violation of chapter 
6.10 	18G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules may threaten public 
6.11 	health or the environment. 

6.12 	Sec. 13. Minnesota Statutes 2008, section 18J.04, subdivision 3, is amended to read:
6.13 		Subd. 3.Notice of inspection samples and analyses. (a) The commissioner shall 
6.14 	provide the owner, operator, or agent in charge with a receipt describing any samples 
6.15 	obtained. If requested, the commissioner shall split any samples obtained and provide 
6.16 	them to the owner, operator, or agent in charge. If an analysis is made of the samples, 
6.17 	a copy of the results of the analysis must be furnished to the owner, operator, or agent 
6.18 	in charge within 30 days after an analysis has been performed. If an analysis is not 
6.19 	performed, the commissioner must notify the owner, operator, or agent in charge within 30 
6.20 	days of the decision not to perform the analysis.
6.21 	(b) The sampling and analysis must be done according to methods provided for 
6.22 	under applicable provisions of chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, 
6.23 	or associated rules. In cases not covered by those sections and methods or in cases 
6.24 	where methods are available in which improved applicability has been demonstrated the 
6.25 	commissioner may adopt appropriate methods from other sources. 

6.26 	Sec. 14. Minnesota Statutes 2008, section 18J.04, subdivision 4, is amended to read:
6.27 		Subd. 4.Inspection requests by others. (a) A person who believes that a violation 
6.28 	of chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules has occurred 
6.29 	may request an inspection by giving notice to the commissioner of the violation. The 
6.30 	notice must be in writing, state with reasonable particularity the grounds for the notice, 
6.31 	and be signed by the person making the request. 
6.32 	(b) If after receiving a notice of violation the commissioner reasonably believes that 
6.33 	a violation has occurred, the commissioner shall make a special inspection in accordance 
7.1 	with the provisions of this section as soon as practicable, to determine if a violation has 
7.2 	occurred.
7.3 	(c) An inspection conducted pursuant to a notice under this subdivision may cover 
7.4 	an entire site and is not limited to the portion of the site specified in the notice. If the 
7.5 	commissioner determines that reasonable grounds to believe that a violation occurred 
7.6 	do not exist, the commissioner must notify the person making the request in writing of 
7.7 	the determination.

7.8 	Sec. 15. Minnesota Statutes 2008, section 18J.05, subdivision 1, is amended to read:
7.9 		Subdivision 1.Enforcement required. (a) A violation of chapter 18G or, 18H, or 
7.10 	18K, sections 21.80 to 21.92, or an associated rule is a violation of this chapter. 
7.11 	(b) Upon the request of the commissioner, county attorneys, sheriffs, and other 
7.12 	officers having authority in the enforcement of the general criminal laws must take action 
7.13 	to the extent of their authority necessary or proper for the enforcement of chapter 18G 
7.14 	or, 18H, or 18K, sections 21.80 to 21.92, or associated rules or valid orders, standards, 
7.15 	stipulations, and agreements of the commissioner. 

7.16 	Sec. 16. Minnesota Statutes 2008, section 18J.05, subdivision 2, is amended to read:
7.17 		Subd. 2.Commissioner's discretion. If minor violations of chapter 18G or, 18H, 
7.18 	or 18K, sections 21.80 to 21.92, or associated rules occur or the commissioner believes 
7.19 	the public interest will be best served by a suitable notice of warning in writing, this 
7.20 	section does not require the commissioner to: 
7.21 	(1) report the violation for prosecution;
7.22 	(2) institute seizure proceedings; or
7.23 	(3) issue a withdrawal from distribution, stop-sale, or other order.

7.24 	Sec. 17. Minnesota Statutes 2008, section 18J.05, subdivision 6, is amended to read:
7.25 		Subd. 6.Agent for service of process. All persons licensed, permitted, registered, 
7.26 	or certified under chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules 
7.27 	must appoint the commissioner as the agent upon whom all legal process may be served 
7.28 	and service upon the commissioner is deemed to be service on the licensee, permittee, 
7.29 	registrant, or certified person. 

7.30 	Sec. 18. Minnesota Statutes 2008, section 18J.06, is amended to read:
7.31 	18J.06 FALSE STATEMENT OR RECORD.
8.1 	A person must not knowingly make or offer a false statement, record, or other 
8.2 	information as part of:
8.3 	(1) an application for registration, license, certification, or permit under chapter 18G 
8.4 	or, 18H, or 18K, sections 21.80 to 21.92, or associated rules; 
8.5 	(2) records or reports required under chapter 18G or, 18H, or 18K, sections 21.80
8.6 	to 21.92, or associated rules; or 
8.7 	(3) an investigation of a violation of chapter 18G or, 18H, or 18K, sections 21.80 to 
8.8 	21.92, or associated rules. 

8.9 	Sec. 19. Minnesota Statutes 2008, section 18J.07, subdivision 3, is amended to read:
8.10 		Subd. 3.Cancellation of registration, permit, license, certification. The 
8.11 	commissioner may cancel or revoke a registration, permit, license, or certification 
8.12 	provided for under chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, or associated 
8.13 	rules or refuse to register, permit, license, or certify under provisions of chapter 18G or,
8.14 	18H, or 18K, sections 21.80 to 21.92, or associated rules if the registrant, permittee, 
8.15 	licensee, or certified person has used fraudulent or deceptive practices in the evasion or 
8.16 	attempted evasion of a provision of chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, 
8.17 	or associated rules. 

8.18 	Sec. 20. Minnesota Statutes 2008, section 18J.07, subdivision 4, is amended to read:
8.19 		Subd. 4.Service of order or notice. (a) If a person is not available for service 
8.20 	of an order, the commissioner may attach the order to the facility, site, seed or seed 
8.21 	container, plant or other living or nonliving object regulated under chapter 18G or, 18H, or 
8.22 	18K, sections 21.80 to 21.92, or associated rules and notify the owner, custodian, other 
8.23 	responsible party, or registrant. 
8.24 	(b) The seed, seed container, plant, or other living or nonliving object regulated 
8.25 	under chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules may not 
8.26 	be sold, used, tampered with, or removed until released under conditions specified by the 
8.27 	commissioner, by an administrative law judge, or by a court. 

8.28 	Sec. 21. Minnesota Statutes 2008, section 18J.07, subdivision 5, is amended to read:
8.29 		Subd. 5.Unsatisfied judgments. (a) An applicant for a license, permit, registration, 
8.30 	or certification under provisions of this chapter, chapter 18G or, 18H, or 18K, sections 
8.31 	21.80 to 21.92, or associated rules may not allow a final judgment against the applicant 
8.32 	for damages arising from a violation of those statutes or rules to remain unsatisfied for 
8.33 	a period of more than 30 days. 
9.1 	(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation 
9.2 	of this chapter results in automatic suspension of the license, permit, registration, or 
9.3 	certification.

9.4 	Sec. 22. Minnesota Statutes 2008, section 18J.09, is amended to read:
9.5 	18J.09 CREDITING OF PENALTIES, FEES, AND COSTS.
9.6 	Penalties, cost reimbursements, fees, and other money collected under this chapter 
9.7 	must be deposited into the state treasury and credited to the appropriate nursery and 
9.8 	phytosanitary, industrial hemp, or seed account.

9.9 	Sec. 23. Minnesota Statutes 2008, section 18J.11, subdivision 1, is amended to read:
9.10 		Subdivision 1.General violation. Except as provided in subdivisions 2 and, 3, and 
9.11 	4, a person is guilty of a misdemeanor if the person violates this chapter or an order, 
9.12 	standard, stipulation, agreement, or schedule of compliance of the commissioner.

9.13 	Sec. 24. Minnesota Statutes 2008, section 18J.11, is amended by adding a subdivision 
9.14 	to read:
9.15 		Subd. 4.Controlled substance offenses. Prosecution under this section does not 
9.16 	preclude prosecution under chapter 152.

9.17 	Sec. 25. [18K.01] SHORT TITLE.
9.18 	This chapter may be referred to as the "Industrial Hemp Development Act."

9.19 	Sec. 26. [18K.02] PURPOSE.
9.20 	The legislature finds that the development and use of industrial hemp can improve 
9.21 	the state's economy and agricultural vitality and the production of industrial hemp can 
9.22 	be regulated so as not to interfere with the strict regulation of controlled substances in 
9.23 	this state. The purpose of the Industrial Hemp Development Act is to promote the state 
9.24 	economy and agriculture industry by permitting the development of a regulated industrial 
9.25 	hemp industry while maintaining strict control of marijuana.

9.26 	Sec. 27. [18K.03] DEFINITIONS.
9.27 		Subdivision 1.Scope. The definitions in this section apply to this chapter.
9.28 		Subd. 2.Commissioner. "Commissioner" means the commissioner of agriculture.
10.1 		Subd. 3.Industrial hemp. "Industrial hemp" means all parts and varieties of 
10.2 	the plant Cannabis sativa L. containing no greater than three-tenths of one percent 
10.3 	tetrahydrocannabinol.
10.4 		Subd. 4.Marijuana. "Marijuana" has the meaning given in section 152.01, 
10.5 	subdivision 9.

10.6 	Sec. 28. [18K.04] INDUSTRIAL HEMP AUTHORIZED AS AGRICULTURAL 
10.7 	CROP.
10.8 	Industrial hemp is considered an agricultural crop in this state if grown in 
10.9 	compliance with this chapter. A person may possess, process, sell, or buy industrial 
10.10 	hemp that is planted, grown, and harvested in accordance with the provisions of sections 
10.11 	18K.05 and 18K.06. 

10.12 	Sec. 29. [18K.05] LICENSING.
10.13 	(a) A person growing or seeking to grow industrial hemp for commercial purposes 
10.14 	must apply to the commissioner for license on a form prescribed by the commissioner.
10.15 	(b) The application for a license must include the name and address of the applicant 
10.16 	and the legal description of the land area to be used for the production of industrial hemp.
10.17 	(c) The commissioner must require each first-time applicant for a license to submit 
10.18 	to a background investigation conducted by the Bureau of Criminal Apprehension as a 
10.19 	condition of licensure. As part of the background investigation, the Bureau of Criminal 
10.20 	Apprehension must conduct criminal history checks of Minnesota records and is authorized 
10.21 	to exchange fingerprints with the Federal Bureau of Investigation for the purpose of a 
10.22 	criminal background check of the national files. The cost of the investigation must be paid 
10.23 	by the applicant. Criminal history records provided to the department under this section 
10.24 	must be treated as private data on individuals, as defined in section 13.02, subdivision 12. 
10.25 	(d) Prior to issuing a license under the provisions of this chapter, the commissioner 
10.26 	must determine that the applicant has complied with all applicable requirements of 
10.27 	the United States Department of Justice, Drug Enforcement Administration, for the 
10.28 	production, distribution, and sale of industrial hemp.
10.29 	(e) If the applicant has completed the application process to the satisfaction of the 
10.30 	commissioner, the commissioner must issue a license which is valid until December 31 
10.31 	of the year of application. An individual licensed under this section is presumed to be 
10.32 	growing industrial hemp for commercial purposes.

10.33 	Sec. 30. [18K.06] INDUSTRIAL HEMP PRODUCTION; NOTIFICATION.
11.1 	(a) Annually, a licensee must file with the commissioner:
11.2 	(1) documentation showing that the seeds planted are of a type and variety certified 
11.3 	to contain no more than three-tenths of one percent tetrahydrocannabinol; and
11.4 	(2) a copy of any contract to grow industrial hemp.
11.5 	(b) A licensee must notify the commissioner of the sale or distribution of any 
11.6 	industrial hemp grown by the licensee, including, but not limited to, the name and address 
11.7 	of the person or entity receiving the industrial hemp and the amount of industrial hemp 
11.8 	sold.

11.9 	Sec. 31. [18K.07] RULEMAKING.
11.10 	(a) The commissioner shall promulgate rules dealing with, but not limited to:
11.11 	(1) supervising and inspecting industrial hemp during its growth and harvest;
11.12 	(2) testing industrial hemp during growth to determine tetrahydrocannabinol levels;
11.13 	(3) assessing a fee commensurate with the costs of the commissioner's activities in 
11.14 	licensing, testing, and supervising industrial hemp production;
11.15 	(4) using the results of the background checks authorized in section 18K.05 as 
11.16 	criteria for approving or denying an application for industrial hemp licensure; and 
11.17 	(5) any other rule or procedure necessary to carry out the purposes of this chapter.
11.18 	(b) Rules promulgated under this section must be consistent with the rules of the 
11.19 	United States Department of Justice, Drug Enforcement Administration, regarding the 
11.20 	production, distribution, and sale of industrial hemp.

11.21 	EFFECTIVE DATE. This section is effective the day after the United States 
11.22 	Department of Justice, Drug Enforcement Administration, authorizes a person to 
11.23 	commercially grow industrial hemp in the United States.

11.24 	Sec. 32. [18K.08] FEES.
11.25 	Any fee collected under this chapter must be credited to the industrial hemp account, 
11.26 	which is hereby established in the agricultural fund in the state treasury. Interest earned in 
11.27 	the account accrues to the account. Funds in the industrial hemp account are continuously 
11.28 	appropriated to the commissioner to implement and enforce this chapter.

11.29 	Sec. 33. [18K.09] DEFENSE FOR POSSESSION OF MARIJUANA. 
11.30 	It is an affirmative defense to a prosecution for the possession of marijuana under 
11.31 	chapter 152 if:
11.32 	(1) the defendant was growing industrial hemp pursuant to the provisions of this 
11.33 	chapter;
12.1 	(2) the defendant has a valid applicable controlled substances registration from the 
12.2 	United States Department of Justice, Drug Enforcement Administration;
12.3 	(3) the defendant fully complied with all of the conditions of the controlled 
12.4 	substances registration; and 
12.5 	(4) the substance in possession is industrial hemp, as defined in section 18K.03.

12.6 	Sec. 34. Minnesota Statutes 2008, section 28A.082, subdivision 1, is amended to read:
12.7 		Subdivision 1.Fees; application. The fees for review of food handler facility floor 
12.8 	plans under the Minnesota Food Code are based upon the square footage of the structure 
12.9 	being newly constructed, remodeled, or converted. The fees for the review shall be:

12.10		square footage
		review fee
		
12.11		0 - 4,999
........	$
	200.00
		
12.12		5,000 - 24,999
........	$
	275.00
		
12.13		25,000 plus
........	$
	425.00
		
12.14 	The applicant must submit the required fee, review application, plans, equipment 
12.15 	specifications, materials lists, and other required information on forms supplied by the 
12.16 	department at least 30 days prior to commencement of construction, remodeling, or 
12.17 	conversion. The commissioner may waive this fee after determining that the facility's 
12.18 	principal mode of business is not the sale of food and that the facility sells only 
12.19 	prepackaged foods.

12.20 	Sec. 35. Minnesota Statutes 2008, section 35.244, subdivision 1, is amended to read:
12.21 		Subdivision 1. Designation of zones. The board has the authority to may establish 
12.22 	zones for the control and eradication of tuberculosis and restrict the movement of cattle, 
12.23 	bison, goats, and farmed cervidae within and between tuberculosis zones in the state. 
12.24 	Zones within the state may be designated as accreditation preparatory, modified accredited, 
12.25 	modified accredited advanced, or accredited free as those terms are defined in Code of 
12.26 	Federal Regulations, title 9, part 77. The board may designate bovine tuberculosis control 
12.27 	zones that contain not more than 325 herds.

12.28 	Sec. 36. Minnesota Statutes 2008, section 35.244, subdivision 2, is amended to read:
12.29 		Subd. 2. Requirements within a tuberculosis control within modified accredited
12.30 	zone. In a modified accredited tuberculosis control zone, the board has the authority to
12.31 	may: 
12.32 	(1) require owners of cattle, bison, goats, or farmed cervidae to report personal 
12.33 	contact information and location of livestock to the board; 
13.1 	(2) require a permit or movement certificates for all cattle, bison, goats, and farmed 
13.2 	cervidae moving between premises within the zone or leaving or entering the zone; 
13.3 	(3) require official identification of all cattle, bison, goats, and farmed cervidae 
13.4 	within the zone or leaving or entering the zone; 
13.5 	(4) require a whole-herd tuberculosis test on each herd of cattle, bison, goats, or 
13.6 	farmed cervidae when any of the animals in the herd is kept on a premises within the zone; 
13.7 	(5) require a negative tuberculosis test within 60 days prior to movement for any 
13.8 	individual cattle, bison, goat, or farmed cervidae moved from a premises in the zone to 
13.9 	another location in Minnesota, with the exception of cattle moving under permit directly 
13.10 	to a slaughter facility under state or federal inspection; 
13.11 	(6) require a whole-herd tuberculosis test within 12 months prior to moving 
13.12 	cattle, bison, goats, or farmed cervidae from premises in the zone to another location 
13.13 	in Minnesota; 
13.14 	(7) require annual herd inventories on all cattle, bison, goat, or farmed cervidae 
13.15 	herds; and 
13.16 	(8) require that a risk assessment be performed to evaluate the interaction of 
13.17 	free-ranging deer and elk with cattle, bison, goat, and farmed cervidae herds and require 
13.18 	the owner to implement the recommendations of the risk assessment. 

13.19 	Sec. 37. [38.345] APPROPRIATIONS BY MUNICIPALITIES.
13.20 	The council of any city and the board of supervisors of any town may incur expenses 
13.21 	and spend money for county extension work, as provided in sections 38.33 to 38.38.

13.22 	Sec. 38. Minnesota Statutes 2008, section 152.01, subdivision 9, is amended to read:
13.23 		Subd. 9.Marijuana. "Marijuana" means all parts of the plant of any species of 
13.24 	the genus Cannabis, including all agronomical varieties, whether growing or not; the 
13.25 	seeds thereof; the resin extracted from any part of such plant; and every compound, 
13.26 	manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin, but 
13.27 	shall not include the mature stalks of such plant, fiber from such stalks, oil or cake made 
13.28 	from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture, 
13.29 	or preparation of such mature stalks, except the resin extracted therefrom, fiber, oil, or 
13.30 	cake, or the sterilized seed of such plant which is incapable of germination. Marijuana 
13.31 	does not include industrial hemp as defined in section 18K.03.

13.32 	Sec. 39. Minnesota Statutes 2008, section 239.092, is amended to read:
13.33 	239.092 SALE FROM BULK.
14.1 	(a) Bulk sales of commodities, when the buyer and seller are not both present to 
14.2 	witness the measurement, must be accompanied by a delivery ticket containing the 
14.3 	following information:
14.4 	(1) the name and address of the person who weighed or measured the commodity;
14.5 	(2) the date delivered;
14.6 	(3) the quantity delivered;
14.7 	(4) the count of individually wrapped packages delivered, if more than one is 
14.8 	included in the quantity delivered;
14.9 	(5) the quantity on which the price is based, if different than the quantity delivered; 
14.10 	and
14.11 	(6) the identity of the commodity in the most descriptive terms commercially 
14.12 	practicable, including representations of quality made in connection with the sale.
14.13 	(b) This section is not intended to conflict with the bulk sale requirements of the 
14.14 	Department of Agriculture. If a conflict occurs, the law and rules of the Department of 
14.15 	Agriculture govern.
14.16 	(c) Firewood sold or distributed across state boundaries or more than 100 miles 
14.17 	from its origin must include delivery ticket information regarding the harvest locations 
14.18 	of the wood by county and state.
14.19 	(d) Paragraph (c) may be enforced using the authority granted in this chapter or 
14.20 	section 18J.05 or 84D.13.

14.21 	Sec. 40. Minnesota Statutes 2008, section 239.093, is amended to read:
14.22 	239.093 INFORMATION REQUIRED WITH PACKAGE.
14.23 	(a) A package offered, exposed, or held for sale must bear a clear and conspicuous 
14.24 	declaration of:
14.25 	(1) the identity of the commodity in the package, unless the commodity can be easily 
14.26 	identified through the wrapper or container;
14.27 	(2) the net quantity in terms of weight, measure, or count;
14.28 	(3) the name and address of the manufacturer, packer, or distributor, if the packages 
14.29 	were not produced on the premises where they are offered, exposed, or held for sale; and
14.30 	(4) the unit price, if the packages are part of a lot containing random weight 
14.31 	packages of the same commodity.
14.32 	(b) This section is not intended to conflict with the packaging requirements of the 
14.33 	Department of Agriculture. If a conflict occurs, the laws and rules of the Department of 
14.34 	Agriculture govern.
15.1 	(c) Firewood sold or distributed across state boundaries or more than 100 miles 
15.2 	from its origin must include information regarding the harvest locations of the wood by 
15.3 	county and state on each label or wrapper.
15.4 	(d) Paragraph (c) may be enforced using the authority granted in this chapter or 
15.5 	section 18J.05 or 84D.13.

15.6 	Sec. 41. Minnesota Statutes 2009 Supplement, section 239.791, subdivision 1, is 
15.7 	amended to read:
15.8 		Subdivision 1.Minimum ethanol content required. (a) Except as provided in 
15.9 	subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline 
15.10 	sold or offered for sale in Minnesota must contain at least the quantity of ethanol required 
15.11 	by clause (1) or (2), whichever is greater:
15.12 	(1) 10.0 percent denatured ethanol by volume; or
15.13 	(2) the maximum percent of denatured ethanol by volume authorized in a waiver 
15.14 	granted by the United States Environmental Protection Agency under section 211(f)(4) of 
15.15 	the Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4).
15.16 	(b) For purposes of enforcing the minimum ethanol requirement of paragraph (a), 
15.17 	clause (1), a gasoline/ethanol blend will be construed to be in compliance if the ethanol 
15.18 	content, exclusive of denaturants and permitted contaminants, comprises not less than 9.2 
15.19 	percent by volume and not more than 10.0 percent by volume of the blend as determined 
15.20 	by an appropriate United States Environmental Protection Agency or American Society of 
15.21 	Testing Materials standard method of analysis of alcohol/ether content in engine fuels.
15.22 	(c) The provisions of this subdivision are suspended during any period of time that 
15.23 	subdivision 1a, paragraph (a), is in effect.

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

15.25 	Sec. 42. Minnesota Statutes 2009 Supplement, section 239.791, subdivision 1a, 
15.26 	is amended to read:
15.27 		Subd. 1a.Minimum ethanol content required. (a) Except as provided in 
15.28 	subdivisions 10 to 14, on August 30, 2013, and thereafter, a person responsible for the 
15.29 	product shall ensure that all gasoline sold or offered for sale in Minnesota must contain at 
15.30 	least the quantity of ethanol required by clause (1) or (2), whichever is greater:
15.31 	(1) 20 percent denatured ethanol by volume; or
15.32 	(2) the maximum percent of denatured ethanol by volume authorized in a waiver 
15.33 	granted by the United States Environmental Protection Agency under section 211(f)(4) of 
15.34 	the Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4).
16.1 	(b) For purposes of enforcing the minimum ethanol requirement of paragraph (a), 
16.2 	clause (1), a gasoline/ethanol blend will be construed to be in compliance if the ethanol 
16.3 	content, exclusive of denaturants and permitted contaminants, comprises not less than 18.4 
16.4 	percent by volume and not more than 20 percent by volume of the blend as determined by 
16.5 	an appropriate United States Environmental Protection Agency or American Society of 
16.6 	Testing Materials standard method of analysis of alcohol content in motor fuels.
16.7 	(c) No motor fuel shall be deemed to be a defective product by virtue of the fact 
16.8 	that the motor fuel is formulated or blended pursuant to the requirements of paragraph 
16.9 	(a) under any theory of liability except for simple or willful negligence or fraud. This 
16.10 	paragraph does not preclude an action for negligent, fraudulent, or willful acts. This 
16.11 	paragraph does not affect a person whose liability arises under chapter 115, water pollution 
16.12 	control; 115A, waste management; 115B, environmental response and liability; 115C, 
16.13 	leaking underground storage tanks; or 299J, pipeline safety; under public nuisance law 
16.14 	for damage to the environment or the public health; under any other environmental or 
16.15 	public health law; or under any environmental or public health ordinance or program of a 
16.16 	municipality as defined in section 466.01.
16.17 	(d)(c) This subdivision expires on December 31, 2010 2012, if by that date:
16.18 	(1) the commissioner of agriculture certifies and publishes the certification in 
16.19 	the State Register that at least 20 percent of the volume of gasoline sold in the state 
16.20 	is denatured ethanol; or
16.21 	(2) federal approval has not been granted under paragraph (a), clause (1). The 
16.22 	United States Environmental Protection Agency's failure to act on an application shall not 
16.23 	be deemed approval under paragraph (a), clause (1), or a waiver under section 211(f)(4) of 
16.24 	the Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4).

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

16.26 	Sec. 43. Minnesota Statutes 2008, section 239.791, is amended by adding a subdivision 
16.27 	to read:
16.28 		Subd. 2a.Federal Clean Air Act waivers; conditions. (a) Before a waiver granted 
16.29 	by the United States Environmental Protection Agency under section 211(f)(4) of the 
16.30 	Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4), 
16.31 	may alter the minimum content level required by subdivision 1, paragraph (a), clause (2), 
16.32 	or subdivision 1a, paragraph (a), clause (2), the waiver must:
16.33 	(1) apply to all gasoline-powered motor vehicles irrespective of model year; and
17.1 	(2) allow for special regulatory treatment of Reid vapor pressure under Code of 
17.2 	Federal Regulations, title 40, section 80.27(d), for blends of gasoline and ethanol up to the 
17.3 	maximum percent of denatured ethanol by volume authorized under the waiver.
17.4 	(b) The minimum ethanol requirement in subdivision 1, paragraph (a), clause (2), 
17.5 	or subdivision 1a, paragraph (a), clause (2), shall, upon the grant of the federal waiver, 
17.6 	be effective on a date determined by the commissioner of commerce. In making this 
17.7 	determination, the commissioner shall consider the amount of time required by refiners, 
17.8 	retailers, pipeline and distribution terminal companies, and other fuel suppliers, acting 
17.9 	expeditiously, to make the operational and logistical changes required to supply fuel in 
17.10 	compliance with the minimum ethanol requirement.

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

17.12 	Sec. 44. Minnesota Statutes 2008, section 239.791, is amended by adding a subdivision 
17.13 	to read:
17.14 		Subd. 2b.Limited liability waiver. No motor fuel shall be deemed to be a defective 
17.15 	product by virtue of the fact that the motor fuel is formulated or blended pursuant to 
17.16 	the requirements of subdivision 1, paragraph (a), clause (2), or subdivision 1a, under 
17.17 	any theory of liability except for simple or willful negligence or fraud. This subdivision 
17.18 	does not preclude an action for negligent, fraudulent, or willful acts. This subdivision 
17.19 	does not affect a person whose liability arises under chapter 115, water pollution control; 
17.20 	115A, waste management; 115B, environmental response and liability; 115C, leaking 
17.21 	underground storage tanks; or 299J, pipeline safety; under public nuisance law for damage 
17.22 	to the environment or the public health; under any other environmental or public health 
17.23 	law; or under any environmental or public health ordinance or program of a municipality 
17.24 	as defined in section 466.01.

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

17.26 	Sec. 45. Minnesota Statutes 2008, section 239.791, is amended by adding a subdivision 
17.27 	to read:
17.28 		Subd. 2c.Fuel dispensing equipment; blends over ten percent ethanol.
 17.29 	Notwithstanding any other law or rule, fuel dispensing equipment authorized to dispense 
17.30 	fuel under subdivision 1, paragraph (a), clause (1), is authorized to dispense fuel under 
17.31 	subdivision 1, paragraph (a), clause (2), or subdivision 1a.

18.1 	Sec. 46. Minnesota Statutes 2008, section 336.9-531, is amended to read:
18.2 	336.9-531 ELECTRONIC ACCESS; LIABILITY; RETENTION.
18.3 	(a) Electronic access. The secretary of state may allow private parties to have 
18.4 	electronic access to the central filing system and to other computerized records maintained 
18.5 	by the secretary of state on a fee basis, except that: (1) visual access to electronic display 
18.6 	terminals at the public counters at the Secretary of State's Office must be without charge 
18.7 	and must be available during public counter hours; and (2) access by law enforcement 
18.8 	personnel, acting in an official capacity, must be without charge. If the central filing system 
18.9 	allows a form of electronic access to information regarding the obligations of debtors, the 
18.10 	access must be available 24 hours a day, every day of the year. Notwithstanding section 
18.11 	13.355, private parties who have electronic access to computerized records may view the 
18.12 	Social Security number information about a debtor that is of record.
18.13 	Notwithstanding section 13.355, a filing office may include Social Security number 
18.14 	information in an information request response under section 336.9-523 or a search of 
18.15 	other liens in the central filing system. A filing office may also include Social Security 
18.16 	number information on a photocopy or electronic copy of a record whether provided in 
18.17 	an information request response or in response to a request made under section 13.03.
18.18 	Any Social Security number information or tax identification number information in the 
18.19 	possession of the secretary of state is private data on individuals.
18.20 	(b) Liability. The secretary of state, county recorders, and their employees and 
18.21 	agents are not liable for any loss or damages arising from errors in or omissions from 
18.22 	information entered into the central filing system as a result of the electronic transmission 
18.23 	of tax lien notices under sections 268.058, subdivision 1, paragraph (c); 270C.63, 
18.24 	subdivision 4; 272.483; and 272.488, subdivisions 1 and 3.
18.25 	The state, the secretary of state, counties, county recorders, and their employees and 
18.26 	agents are immune from liability that occurs as a result of errors in or omissions from 
18.27 	information provided from the central filing system.
18.28 	(c) Retention. Once the image of a paper record has been captured by the central 
18.29 	filing system, the secretary of state may remove or direct the removal from the files and 
18.30 	destroy the paper record.

18.31 	EFFECTIVE DATE. This section is effective 30 days after the secretary of state 
18.32 	certifies that the information systems of the Office of the Secretary of State have been 
18.33 	modified to implement this section.

18.34 	Sec. 47. Minnesota Statutes 2008, section 336A.08, subdivision 1, is amended to read:
19.1 		Subdivision 1.Compilation. (a) The secretary of state shall compile the information 
19.2 	on effective financing statements in the computerized filing system into a master list:
19.3 	(1) organized according to farm product;
19.4 	(2) arranged within each product:
19.5 	(i) in alphabetical order according to the last name of the individual debtor or, in 
19.6 	the case of debtors doing business other than as individuals, the first word in the name 
19.7 	of the debtors;
19.8 	(ii) in numerical order according to the Social Security number of the individual 
19.9 	debtor or, in the case of debtors doing business other than as individuals, the Internal 
19.10 	Revenue Service taxpayer identification number of the debtors unique identifier assigned 
19.11 	by the secretary of state to, and associated with, the Social Security number of the debtor;
19.12 	(iii) geographically by county; and
19.13 	(iv) by crop year;
19.14 	(3) containing the information provided on an effective financing statement; and
19.15 	(4) designating any applicable terminations of the effective financing statement.
19.16 	(b) The secretary of state shall compile information from lien notices recorded in the 
19.17 	computerized filing system into a statutory lien master list in alphabetical order according 
19.18 	to the last name of the individual debtor or, in the case of debtors doing business other 
19.19 	than as individuals, the first word in the name of the debtors. The secretary of state may 
19.20 	also organize the statutory lien master list according to one or more of the categories of 
19.21 	information established in paragraph (a). Any terminations of lien notices must be noted.

19.22 	EFFECTIVE DATE. This section is effective 30 days after the secretary of state 
19.23 	certifies that the information systems of the Office of the Secretary of State have been 
19.24 	modified to implement this section.

19.25 	Sec. 48. Minnesota Statutes 2008, section 336A.08, subdivision 4, is amended to read:
19.26 		Subd. 4.Distribution of master and partial lists. (a) The secretary of state shall 
19.27 	maintain the information on the effective financing statement master list:
19.28 	(1) by farm product arranged alphabetically by debtor; and
19.29 	(2) by farm product arranged numerically by the debtor's Social Security number for 
19.30 	an individual debtor or, in the case of debtors doing business other than as individuals, the 
19.31 	Internal Revenue Service taxpayer identification number of the debtors unique identifier 
19.32 	assigned by the secretary of state to, and associated with, the Social Security number 
19.33 	of the debtor.
19.34 	(b) The secretary of state shall maintain the information in the farm products 
19.35 	statutory lien master list by county arranged alphabetically by debtor.
20.1 	(c) The secretary of state shall distribute or make available the requested master and 
20.2 	partial master lists on a monthly basis to farm product dealers registered under section 
20.3 	336A.11. Lists will be distributed or made available on or before the tenth day of each 
20.4 	month or on the next business day thereafter if the tenth day is not a business day.  
20.5 	(d) The secretary of state shall make the master and partial master lists available 
20.6 	as written or printed paper documents and may make lists available in other forms or 
20.7 	media, including:
20.8 	(1) any electronically transmitted medium; or
20.9 	(2) any form of digital media.
20.10 	(e) There shall be no fee for partial or master lists distributed via an electronically 
20.11 	transmitted medium. The annual fee for any other form of digital media is $200. The 
20.12 	annual fee for paper partial lists is $250 and $400 for paper master lists.
20.13 	(f) A farm products dealer shall register pursuant to section 336A.11 by the last 
20.14 	business day of the month to receive the monthly lists requested by the farm products 
20.15 	dealer for that month.  
20.16 	(g) If a registered farm products dealer receives a monthly list that cannot be read or 
20.17 	is incomplete, the farm products dealer must immediately inform the secretary of state by 
20.18 	telephone or e-mail of the problem. The registered farm products dealer shall confirm the 
20.19 	existence of the problem by writing to the secretary of state. The secretary of state shall 
20.20 	provide the registered farm products dealer with new monthly lists in the medium chosen 
20.21 	by the registered farm products dealer no later than five business days after receipt of the 
20.22 	oral notice from the registered farm products dealer. A registered farm products dealer is 
20.23 	not considered to have received notice of the information on the monthly lists until the 
20.24 	duplicate list is received from the secretary of state or until five days have passed since the 
20.25 	duplicate lists were deposited in the mail by the secretary of state, whichever comes first.
20.26 	(h) On receipt of a written notice pursuant to section 336A.13, the secretary of state 
20.27 	shall duplicate the monthly lists requested by the registered farm products dealer. The 
20.28 	duplicate monthly lists must be sent to the registered farm products dealer no later than five 
20.29 	business days after receipt of the written notice from the registered farm products dealer.  
20.30 	(i) A registered farm products dealer may request monthly lists in one medium 
20.31 	per registration.
20.32 	(j) Registered farm products dealers must have renewed their registration before the 
20.33 	first day of July each year. Failure to send in the registration before that date will result in 
20.34 	the farm products dealer not receiving the requested monthly lists.
20.35 	(k) Registered farm products dealers choosing to obtain monthly lists via an 
20.36 	electronically transmitted medium or in any form of digital media may choose to receive 
21.1 	all of the information for the monthly lists requested the first month and then only 
21.2 	additions and deletions to the database for the remaining 11 months of the year. Following 
21.3 	the first year of registration, the registered farm products dealer may choose to continue to 
21.4 	receive one copy of the full monthly list at the beginning of each year or may choose to 
21.5 	receive only additions and deletions.

21.6 	EFFECTIVE DATE. This section is effective 30 days after the secretary of state 
21.7 	certifies that the information systems of the Office of the Secretary of State have been 
21.8 	modified to implement this section.

21.9 	Sec. 49. Minnesota Statutes 2008, section 336A.14, is amended to read:
21.10 	336A.14 RESTRICTED USE OF INFORMATION.
21.11 	Any Social Security number information or tax identification number information 
21.12 	in the possession of the secretary of state is private data on individuals. Information 
21.13 	obtained from the seller of a farm product relative to the Social Security number or tax 
21.14 	identification number of the true owner of the farm product and all information obtained 
21.15 	from the master or limited list may not be used for purposes that are not related to: (1) 
21.16 	purchase of a farm product; (2) taking a security interest against a farm product; or (3) 
21.17 	perfecting a farm product statutory lien.

21.18 	EFFECTIVE DATE. This section is effective 30 days after the secretary of state 
21.19 	certifies that the information systems of the Office of the Secretary of State have been 
21.20 	modified to implement this section.

21.21 	Sec. 50. Minnesota Statutes 2008, section 375.30, subdivision 2, is amended to read:
21.22 		Subd. 2.Wild hemp. A county board, by resolution, may appropriate and spend 
21.23 	money as necessary to spray and otherwise eradicate wild hemp, commonly known as 
21.24 	marijuana, on private property within the county. The county board may authorize the 
21.25 	use of county equipment, personnel and supplies and materials to spray or otherwise 
21.26 	eradicate wild hemp on private property, and may pro rate the expenses involved between 
21.27 	the county and owner or occupant of the property. Wild hemp does not include industrial 
21.28 	hemp grown by a person licensed under chapter 18K.

21.29 	Sec. 51. Minnesota Statutes 2008, section 500.221, subdivision 2, is amended to read:
21.30 		Subd. 2.Aliens and non-American corporations. Except as hereinafter provided, 
21.31 	no natural person shall acquire directly or indirectly any interest in agricultural land unless 
21.32 	the person is a citizen of the United States or a permanent resident alien of the United 
22.1 	States. In addition to the restrictions in section 500.24, no corporation, partnership, 
22.2 	limited partnership, trustee, or other business entity shall directly or indirectly, acquire 
22.3 	or otherwise obtain any interest, whether legal, beneficial or otherwise, in any title to 
22.4 	agricultural land unless at least 80 percent of each class of stock issued and outstanding or 
22.5 	80 percent of the ultimate beneficial interest of the entity is held directly or indirectly by 
22.6 	citizens of the United States or permanent resident aliens. This section shall not apply: 
22.7 	(1) to agricultural land that may be acquired by devise, inheritance, as security for 
22.8 	indebtedness, by process of law in the collection of debts, or by any procedure for the 
22.9 	enforcement of a lien or claim thereon, whether created by mortgage or otherwise. All 
22.10 	agricultural land acquired in the collection of debts or by the enforcement of a lien or 
22.11 	claim shall be disposed of within three years after acquiring ownership;
22.12 	(2) to citizens or subjects of a foreign country whose rights to hold land are secured 
22.13 	by treaty;
22.14 	(3) to lands used for transportation purposes by a common carrier, as defined in 
22.15 	section 218.011, subdivision 10; 
22.16 	(4) to lands or interests in lands acquired for use in connection with (i) the production 
22.17 	of timber and forestry products by a corporation organized under the laws of Minnesota, 
22.18 	or (ii) mining and mineral processing operations. Pending the development of agricultural 
22.19 	land for the production of timber and forestry products or mining purposes the land may 
22.20 	not be used for farming except under lease to a family farm, a family farm corporation or 
22.21 	an authorized farm corporation;
22.22 	(5) to agricultural land operated for research or experimental purposes if the 
22.23 	ownership of the agricultural land is incidental to the research or experimental objectives 
22.24 	of the person or business entity and the total acreage owned by the person or business 
22.25 	entity does not exceed the acreage owned on May 27, 1977;
22.26 	(6) to the purchase of any tract of 40 acres or less for facilities incidental to pipeline 
22.27 	operation by a company operating a pipeline as defined in section 216G.01, subdivision 3; 
22.28 	(7) to agricultural land and land capable of being used as farmland in vegetable 
22.29 	processing operations that is reasonably necessary to meet the requirements of pollution 
22.30 	control law or rules; or
22.31 	(8) to an interest in agricultural land held on the August 1, 2003, by a natural person 
22.32 	with a nonimmigrant treaty investment visa, pursuant to United States Code, title 8, 
22.33 	section 1101(a)15(E)(ii), if, within five years after August 1, 2003, the person:
22.34 	(i) disposes of all agricultural land held; or
22.35 	(ii) becomes a permanent resident alien of the United States or a United States 
22.36 	citizen.; or
23.1 	(9) to an easement taken by an individual or entity for the installation and repair 
23.2 	of transmission lines and for wind rights.

23.3 	Sec. 52. Minnesota Statutes 2008, section 500.221, subdivision 4, is amended to read:
23.4 		Subd. 4.Reports. (a) Any natural person, corporation, partnership, limited 
23.5 	partnership, trustee, or other business entity prohibited from future acquisition of 
23.6 	agricultural land may retain title to any agricultural land lawfully acquired within this state 
23.7 	prior to June 1, 1981, but shall file a report with the commissioner of agriculture annually 
23.8 	before January 31 containing a description of all agricultural land held within this state, 
23.9 	the purchase price and market value of the land, the use to which it is put, the date of 
23.10 	acquisition and any other reasonable information required by the commissioner. 
23.11 	(b) An individual or entity that qualifies for an exemption under subdivision 2, 
23.12 	clause (2) or (9), and owns an interest in agricultural land shall file a report with the 
23.13 	commissioner of agriculture within 30 days of acquisition containing a description of all 
23.14 	interests in agricultural land held within this state.
23.15 	(c) The commissioner shall make the information available to the public. 
23.16 	(d) All required annual reports shall include a filing fee of $50 plus $10 for each 
23.17 	additional quarter section of land.

23.18 	Sec. 53. Minnesota Statutes 2008, section 500.24, subdivision 2, is amended to read:
23.19 		Subd. 2.Definitions. The definitions in this subdivision apply to this section.
23.20 	(a) "Farming" means the production of (1) agricultural products; (2) livestock or 
23.21 	livestock products; (3) milk or milk products; or (4) fruit or other horticultural products. It 
23.22 	does not include the processing, refining, or packaging of said products, nor the provision 
23.23 	of spraying or harvesting services by a processor or distributor of farm products. It does 
23.24 	not include the production of timber or forest products, the production of poultry or 
23.25 	poultry products, or the feeding and caring for livestock that are delivered to a corporation 
23.26 	for slaughter or processing for up to 20 days before slaughter or processing.
23.27 	(b) "Family farm" means an unincorporated farming unit owned by one or more 
23.28 	persons residing on the farm or actively engaging in farming.
23.29 	(c) "Family farm corporation" means a corporation founded for the purpose of 
23.30 	farming and the ownership of agricultural land in which the majority of the stock is held 
23.31 	by and the majority of the stockholders are persons, the spouses of persons, or current 
23.32 	beneficiaries of one or more family farm trusts in which the trustee holds stock in a family 
23.33 	farm corporation, related to each other within the third degree of kindred according to 
23.34 	the rules of the civil law, and at least one of the related persons is residing on or actively 
24.1 	operating the farm, and none of whose stockholders are corporations; provided that a 
24.2 	family farm corporation shall not cease to qualify as such hereunder by reason of any:
24.3 	(1) transfer of shares of stock to a person or the spouse of a person related within 
24.4 	the third degree of kindred according to the rules of civil law to the person making the 
24.5 	transfer, or to a family farm trust of which the shareholder, spouse, or related person is 
24.6 	a current beneficiary; or
24.7 	(2) distribution from a family farm trust of shares of stock to a beneficiary related 
24.8 	within the third degree of kindred according to the rules of civil law to a majority of the 
24.9 	current beneficiaries of the trust, or to a family farm trust of which the shareholder, spouse, 
24.10 	or related person is a current beneficiary.
24.11 	For the purposes of this section, a transfer may be made with or without 
24.12 	consideration, either directly or indirectly, during life or at death, whether or not in trust, 
24.13 	of the shares in the family farm corporation, and stock owned by a family farm trust are 
24.14 	considered to be owned in equal shares by the current beneficiaries.
24.15 	(d) "Family farm trust" means:
24.16 	(1) a trust in which:
24.17 	(i) a majority of the current beneficiaries are persons or spouses of persons who are 
24.18 	related to each other within the third degree of kindred according to the rules of civil law;
24.19 	(ii) all of the current beneficiaries are natural persons or nonprofit corporations 
24.20 	or trusts described in the Internal Revenue Code, section 170(c), as amended, and the 
24.21 	regulations under that section; and
24.22 	(iii) one of the family member current beneficiaries is residing on or actively 
24.23 	operating the farm; or the trust leases the agricultural land to a family farm unit, a 
24.24 	family farm corporation, an authorized farm corporation, an authorized livestock farm 
24.25 	corporation, a family farm limited liability company, a family farm trust, an authorized 
24.26 	farm limited liability company, a family farm partnership, or an authorized farm 
24.27 	partnership; or
24.28 	(2) a charitable remainder trust as defined in the Internal Revenue Code, section 664, 
24.29 	as amended, and the regulations under that section, and a charitable lead trust as set forth 
24.30 	in the Internal Revenue Code, section 170(f), and the regulations under that section.
24.31 	(e) "Authorized farm corporation" means a corporation meeting the following 
24.32 	standards:
24.33 	(1) it has no more than five shareholders, provided that for the purposes of this 
24.34 	section, a husband and wife are considered one shareholder;
24.35 	(2) all its shareholders, other than any estate, are natural persons or a family farm 
24.36 	trust;
25.1 	(3) it does not have more than one class of shares;
25.2 	(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed 
25.3 	20 percent of its gross receipts;
25.4 	(5) shareholders holding 51 percent or more of the interest in the corporation reside 
25.5 	on the farm or are actively engaging in farming;
25.6 	(6) it does not, directly or indirectly, own or otherwise have an interest in any title to 
25.7 	more than 1,500 acres of agricultural land; and
25.8 	(7) none of its shareholders are shareholders in other authorized farm corporations 
25.9 	that directly or indirectly in combination with the corporation own more than 1,500 acres 
25.10 	of agricultural land.
25.11 	(f) "Authorized livestock farm corporation" means a corporation formed for the 
25.12 	production of livestock and meeting the following standards:
25.13 	(1) it is engaged in the production of livestock other than dairy cattle;
25.14 	(2) all its shareholders, other than any estate, are natural persons, family farm trusts, 
25.15 	or family farm corporations;
25.16 	(3) it does not have more than one class of shares;
25.17 	(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed 
25.18 	20 percent of its gross receipts;
25.19 	(5) shareholders holding 75 percent or more of the control, financial, and capital 
25.20 	investment in the corporation are farmers, and at least 51 percent of the required 
25.21 	percentage of farmers are actively engaged in livestock production;
25.22 	(6) it does not, directly or indirectly, own or otherwise have an interest in any title to 
25.23 	more than 1,500 acres of agricultural land; and
25.24 	(7) none of its shareholders are shareholders in other authorized farm corporations 
25.25 	that directly or indirectly in combination with the corporation own more than 1,500 acres 
25.26 	of agricultural land.
25.27 	(g) "Agricultural land" means real estate used for farming or capable of being used 
25.28 	for farming in this state.
25.29 	(h) "Pension or investment fund" means a pension or employee welfare benefit fund, 
25.30 	however organized, a mutual fund, a life insurance company separate account, a common 
25.31 	trust of a bank or other trustee established for the investment and reinvestment of money 
25.32 	contributed to it, a real estate investment trust, or an investment company as defined in 
25.33 	United States Code, title 15, section 80a-3.
25.34 	(i) "Farm homestead" means a house including adjoining buildings that has been 
25.35 	used as part of a farming operation or is part of the agricultural land used for a farming 
25.36 	operation.
26.1 	(j) "Family farm partnership" means a limited partnership formed for the purpose of 
26.2 	farming and the ownership of agricultural land in which the majority of the interests in 
26.3 	the partnership is held by and the majority of the partners are natural persons or current 
26.4 	beneficiaries of one or more family farm trusts in which the trustee holds an interest in a 
26.5 	family farm partnership related to each other within the third degree of kindred according 
26.6 	to the rules of the civil law, and at least one of the related persons is residing on the farm, 
26.7 	actively operating the farm, or the agricultural land was owned by one or more of the 
26.8 	related persons for a period of five years before its transfer to the limited partnership, and 
26.9 	none of the partners is a corporation. A family farm partnership does not cease to qualify 
26.10 	as a family farm partnership because of a:
26.11 	(1) transfer of a partnership interest to a person or spouse of a person related within 
26.12 	the third degree of kindred according to the rules of civil law to the person making the 
26.13 	transfer or to a family farm trust of which the partner, spouse, or related person is a current 
26.14 	beneficiary; or
26.15 	(2) distribution from a family farm trust of a partnership interest to a beneficiary 
26.16 	related within the third degree of kindred according to the rules of civil law to a majority 
26.17 	of the current beneficiaries of the trust, or to a family farm trust of which the partner, 
26.18 	spouse, or related person is a current beneficiary.
26.19 	For the purposes of this section, a transfer may be made with or without 
26.20 	consideration, either directly or indirectly, during life or at death, whether or not in trust, 
26.21 	of a partnership interest in the family farm partnership, and interest owned by a family 
26.22 	farm trust is considered to be owned in equal shares by the current beneficiaries.
26.23 	(k) "Authorized farm partnership" means a limited partnership meeting the following 
26.24 	standards:
26.25 	(1) it has been issued a certificate from the secretary of state or is registered with the 
26.26 	county recorder and farming and ownership of agricultural land is stated as a purpose or 
26.27 	character of the business;
26.28 	(2) it has no more than five partners;
26.29 	(3) all its partners, other than any estate, are natural persons or family farm trusts;
26.30 	(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed 
26.31 	20 percent of its gross receipts;
26.32 	(5) its general partners hold at least 51 percent of the interest in the land assets of the 
26.33 	partnership and reside on the farm or are actively engaging in farming not more than 1,500 
26.34 	acres as a general partner in an authorized limited partnership;
26.35 	(6) its limited partners do not participate in the business of the limited partnership 
26.36 	including operating, managing, or directing management of farming operations;
27.1 	(7) it does not, directly or indirectly, own or otherwise have an interest in any title to 
27.2 	more than 1,500 acres of agricultural land; and
27.3 	(8) none of its limited partners are limited partners in other authorized farm 
27.4 	partnerships that directly or indirectly in combination with the partnership own more than 
27.5 	1,500 acres of agricultural land.
27.6 	(l) "Family farm limited liability company" means a limited liability company 
27.7 	founded for the purpose of farming and the ownership of agricultural land in which the 
27.8 	majority of the membership interests is held by and the majority of the members are 
27.9 	natural persons, or current beneficiaries of one or more family farm trusts in which the 
27.10 	trustee holds an interest in a family farm limited liability company related to each other 
27.11 	within the third degree of kindred according to the rules of the civil law, and at least one of 
27.12 	the related persons is residing on the farm, actively operating the farm, or the agricultural 
27.13 	land was owned by one or more of the related persons for a period of five years before 
27.14 	its transfer to the limited liability company, and none of the members is a corporation or 
27.15 	a limited liability company. A family farm limited liability company does not cease to 
27.16 	qualify as a family farm limited liability company because of:
27.17 	(1) a transfer of a membership interest to a person or spouse of a person related 
27.18 	within the third degree of kindred according to the rules of civil law to the person making 
27.19 	the transfer or to a family farm trust of which the member, spouse, or related person is 
27.20 	a current beneficiary; or
27.21 	(2) distribution from a family farm trust of a membership interest to a beneficiary 
27.22 	related within the third degree of kindred according to the rules of civil law to a majority 
27.23 	of the current beneficiaries of the trust, or to a family farm trust of which the member, 
27.24 	spouse, or related person is a current beneficiary.
27.25 	For the purposes of this section, a transfer may be made with or without 
27.26 	consideration, either directly or indirectly, during life or at death, whether or not in trust, of 
27.27 	a membership interest in the family farm limited liability company, and interest owned by 
27.28 	a family farm trust is considered to be owned in equal shares by the current beneficiaries. 
27.29 	Except for a state or federally chartered financial institution acquiring an encumbrance 
27.30 	for the purpose of security or an interest under paragraph (x), a member of a family farm 
27.31 	limited liability company may not transfer a membership interest, including a financial 
27.32 	interest, to a person who is not otherwise eligible to be a member under this paragraph.
27.33 	(m) "Authorized farm limited liability company" means a limited liability company 
27.34 	meeting the following standards:
27.35 	(1) it has no more than five members;
27.36 	(2) all its members, other than any estate, are natural persons or family farm trusts;
28.1 	(3) it does not have more than one class of membership interests;
28.2 	(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed 
28.3 	20 percent of its gross receipts;
28.4 	(5) members holding 51 percent or more of both the governance rights and financial 
28.5 	rights in the limited liability company reside on the farm or are actively engaged in 
28.6 	farming;
28.7 	(6) it does not, directly or indirectly, own or otherwise have an interest in any title to 
28.8 	more than 1,500 acres of agricultural land; and
28.9 	(7) none of its members are members in other authorized farm limited liability 
28.10 	companies that directly or indirectly in combination with the authorized farm limited 
28.11 	liability company own more than 1,500 acres of agricultural land.
28.12 	Except for a state or federally chartered financial institution acquiring an 
28.13 	encumbrance for the purpose of security or an interest under paragraph (x), a member of 
28.14 	an authorized farm limited liability company may not transfer a membership interest, 
28.15 	including a financial interest, to a person who is not otherwise eligible to be a member 
28.16 	under this paragraph.
28.17 	(n) "Farmer" means a natural person who regularly participates in physical labor or 
28.18 	operations management in the person's farming operation and files "Schedule F" as part of 
28.19 	the person's annual Form 1040 filing with the United States Internal Revenue Service.
28.20 	(o) "Actively engaged in livestock production" means performing day-to-day 
28.21 	physical labor or day-to-day operations management that significantly contributes to 
28.22 	livestock production and the functioning of a livestock operation.
28.23 	(p) "Research or experimental farm" means a corporation, limited partnership, 
28.24 	pension, investment fund, or limited liability company that owns or operates agricultural 
28.25 	land for research or experimental purposes, provided that any commercial sales from the 
28.26 	operation are incidental to the research or experimental objectives of the corporation. A 
28.27 	corporation, limited partnership, limited liability company, or pension or investment fund 
28.28 	seeking initial approval by the commissioner to operate agricultural land for research or 
28.29 	experimental purposes must first submit to the commissioner a prospectus or proposal of 
28.30 	the intended method of operation containing information required by the commissioner 
28.31 	including a copy of any operational contract with individual participants.
28.32 	(q) "Breeding stock farm" means a corporation, limited partnership, or limited 
28.33 	liability company, that owns or operates agricultural land for the purpose of raising 
28.34 	breeding stock, including embryos, for resale to farmers or for the purpose of growing 
28.35 	seed, wild rice, nursery plants, or sod. An entity that is organized to raise livestock 
29.1 	other than dairy cattle under this paragraph that does not qualify as an authorized farm 
29.2 	corporation must:
29.3 	(1) sell all castrated animals to be fed out or finished to farming operations that are 
29.4 	neither directly nor indirectly owned by the business entity operating the breeding stock 
29.5 	operation; and
29.6 	(2) report its total production and sales annually to the commissioner.
29.7 	(r) "Aquatic farm" means a corporation, limited partnership, or limited liability 
29.8 	company, that owns or leases agricultural land as a necessary part of an aquatic farm 
29.9 	as defined in section 17.47, subdivision 3. 
29.10 	(s) "Religious farm" means a corporation formed primarily for religious purposes 
29.11 	whose sole income is derived from agriculture.
29.12 	(t) "Utility corporation" means a corporation regulated under Minnesota Statutes 
29.13 	1974, chapter 216B, that owns agricultural land for purposes described in that chapter, or 
29.14 	an electric generation or transmission cooperative that owns agricultural land for use in 
29.15 	its business if the land is not used for farming except under lease to a family farm unit, 
29.16 	a family farm corporation, a family farm trust, a family farm partnership, or a family 
29.17 	farm limited liability company.
29.18 	(u) "Development organization" means a corporation, limited partnership, limited 
29.19 	liability company, or pension or investment fund that has an interest in agricultural land 
29.20 	for which the corporation, limited partnership, limited liability company, or pension or 
29.21 	investment fund has documented plans to use and subsequently uses the land within 
29.22 	six years from the date of purchase for a specific nonfarming purpose, or if the land is 
29.23 	zoned nonagricultural, or if the land is located within an incorporated area. A corporation, 
29.24 	limited partnership, limited liability company, or pension or investment fund may hold 
29.25 	agricultural land in the amount necessary for its nonfarm business operation; provided, 
29.26 	however, that pending the development of agricultural land for nonfarm purposes, the land 
29.27 	may not be used for farming except under lease to a family farm unit, a family farm 
29.28 	corporation, a family farm trust, an authorized farm corporation, an authorized livestock 
29.29 	farm corporation, a family farm partnership, an authorized farm partnership, a family farm 
29.30 	limited liability company, or an authorized farm limited liability company, or except when 
29.31 	controlled through ownership, options, leaseholds, or other agreements by a corporation 
29.32 	that has entered into an agreement with the United States under the New Community Act 
29.33 	of 1968 (Title IV of the Housing and Urban Development Act of 1968, United States Code, 
29.34 	title 42, sections 3901 to 3914) as amended, or a subsidiary or assign of such a corporation.
29.35 	(v) "Exempt land" means agricultural land owned or leased by a corporation as of 
29.36 	May 20, 1973, agricultural land owned or leased by a pension or investment fund as of 
30.1 	May 12, 1981, agricultural land owned or leased by a limited partnership as of May 1, 
30.2 	1988, or agricultural land owned or leased by a trust as of the effective date of Laws 2000, 
30.3 	chapter 477, including the normal expansion of that ownership at a rate not to exceed 20 
30.4 	percent of the amount of land owned as of May 20, 1973, for a corporation; May 12, 1981, 
30.5 	for a pension or investment fund; May 1, 1988, for a limited partnership, or the effective 
30.6 	date of Laws 2000, chapter 477, for a trust, measured in acres, in any five-year period, 
30.7 	and including additional ownership reasonably necessary to meet the requirements of 
30.8 	pollution control rules. A corporation, limited partnership, or pension or investment fund 
30.9 	that is eligible to own or lease agricultural land under this section prior to May 1997, or a 
30.10 	corporation that is eligible to own or lease agricultural land as a benevolent trust under this 
30.11 	section prior to the effective date of Laws 2000, chapter 477, may continue to own or lease 
30.12 	agricultural land subject to the same conditions and limitations as previously allowed.
30.13 	(w) "Gifted land" means agricultural land acquired as a gift, either by grant or devise, 
30.14 	by an educational, religious, or charitable nonprofit corporation, limited partnership, 
30.15 	limited liability company, or pension or investment fund if all land so acquired is disposed 
30.16 	of within ten years after acquiring the title.
30.17 	(x) "Repossessed land" means agricultural land acquired by a corporation, limited 
30.18 	partnership, limited liability company, or pension or investment fund by process of law 
30.19 	in the collection of debts, or by any procedure for the enforcement of a lien or claim on 
30.20 	the land, whether created by mortgage or otherwise if all land so acquired is disposed of 
30.21 	within five years after acquiring the title. The five-year limitation is a covenant running 
30.22 	with the title to the land against any grantee, assignee, or successor of the pension or 
30.23 	investment fund, corporation, limited partnership, or limited liability company. The land 
30.24 	so acquired must not be used for farming during the five-year period, except under a 
30.25 	lease to a family farm unit, a family farm corporation, a family farm trust, an authorized 
30.26 	farm corporation, an authorized livestock farm corporation, a family farm partnership, an 
30.27 	authorized farm partnership, a family farm limited liability company, or an authorized 
30.28 	farm limited liability company. Notwithstanding the five-year divestiture requirement 
30.29 	under this paragraph, a financial institution may continue to own the agricultural land if the 
30.30 	agricultural land is leased to the immediately preceding former owner, but must dispose 
30.31 	of the agricultural land within ten years of acquiring the title. Livestock acquired by a 
30.32 	pension or investment fund, corporation, limited partnership, or limited liability company 
30.33 	in the collection of debts, or by a procedure for the enforcement of lien or claim on the 
30.34 	livestock whether created by security agreement or otherwise after August 1, 1994, must 
30.35 	be sold or disposed of within one full production cycle for the type of livestock acquired 
30.36 	or 18 months after the livestock is acquired, whichever is earlier.
31.1 	(y) "Commissioner" means the commissioner of agriculture.
31.2 	(z) "Nonprofit corporation" means a nonprofit corporation organized under state 
31.3 	nonprofit corporation or trust law or qualified for tax-exempt status under federal tax 
31.4 	law that uses the land for a specific nonfarming purpose or, leases the agricultural land 
31.5 	to a family farm unit, a family farm corporation, an authorized farm corporation, an 
31.6 	authorized livestock farm corporation, a family farm limited liability company, a family 
31.7 	farm trust, an authorized farm limited liability company, a family farm partnership, or an 
31.8 	authorized farm partnership, or actively farms less than 40 acres and uses all profits from 
31.9 	the agricultural land for educational purposes.
31.10 	(aa) "Current beneficiary" means a person who at any time during a year is entitled 
31.11 	to, or at the discretion of any person may, receive a distribution from the income or 
31.12 	principal of the trust. It does not include a distributee trust, other than a trust described in 
31.13 	section 170(c) of the Internal Revenue Code, as amended, but does include the current 
31.14 	beneficiaries of the distributee trust. It does not include a person in whose favor a power 
31.15 	of appointment could be exercised until the holder of the power of appointment actually 
31.16 	exercises the power of appointment in that person's favor. It does not include a person who 
31.17 	is entitled to receive a distribution only after a specified time or upon the occurrence of a 
31.18 	specified event until the time or occurrence of the event. For the purposes of this section, a 
31.19 	distributee trust is a current beneficiary of a family farm trust.
31.20 	(bb) "De minimis" means that any corporation, pension or investment fund, limited 
31.21 	liability company, or limited partnership that directly or indirectly owns, acquires, or 
31.22 	otherwise obtains any interest in 40 acres or less of agricultural land and annually receives 
31.23 	less than $150 per acre in gross revenue from rental or agricultural production.

31.24 	Sec. 54. Minnesota Statutes 2008, section 514.965, subdivision 2, is amended to read:
31.25 		Subd. 2.Agricultural lien. "Agricultural lien" means an agricultural lien as defined 
31.26 	in section 336.9-102(a)(5) and includes a veterinarian's lien, breeder's lien, livestock 
31.27 	production input lien, temporary livestock production input lien, and feeder's lien under 
31.28 	this section and section 514.966.  

31.29 	Sec. 55. Minnesota Statutes 2008, section 514.966, is amended by adding a subdivision 
31.30 	to read:
31.31 		Subd. 3a.Temporary livestock production input lien; debtor in mediation. (a) 
31.32 	A supplier furnishing livestock production inputs in the ordinary course of business to a 
31.33 	debtor who has filed a mediation request under chapter 583 has a livestock production 
31.34 	input lien for the unpaid retail cost of the livestock production input. A perfected livestock 
32.1 	production input lien that attaches to livestock may not exceed the amount, if any, that the 
32.2 	sales price of the livestock for which the inputs were received exceeds the greater of the 
32.3 	fair market value of the livestock at the time the lien attaches or the acquisition price of 
32.4 	the livestock. A livestock production input lien becomes effective when the agricultural 
32.5 	production inputs are furnished by the supplier to the purchaser.
32.6 	(b) A livestock production input lien under this subdivision applies to livestock 
32.7 	production inputs provided to the debtor during the 45 days following a mediation request 
32.8 	under chapter 583.
32.9 	(c) A person who supplies livestock production inputs under this subdivision shall 
32.10 	provide a lien-notification statement as required under subdivision 3, paragraphs (b) 
32.11 	and (c), but is not subject to subdivision 3, paragraphs (d) to (f). A perfected temporary 
32.12 	livestock production input lien corresponding to the lien-notification statement has priority 
32.13 	over any security interest of the lender in the same livestock or their proceeds for the 
32.14 	lesser of:
32.15 	(1) the amount stated in the lien-notification statement; or
32.16 	(2) the unpaid retail cost of the livestock production input identified in the 
32.17 	lien-notification statement, subject to any limitation in paragraph (a).

32.18 	Sec. 56. Minnesota Statutes 2008, section 514.966, subdivision 5, is amended to read:
32.19 		Subd. 5.Scope. A veterinarian's lien, breeder's lien, livestock production input lien, 
32.20 	temporary livestock production lien, or feeder's lien attaches to the livestock serviced by 
32.21 	the agricultural lienholder, and products and proceeds thereof to the extent of the price 
32.22 	or value of the service provided.

32.23 	Sec. 57. Minnesota Statutes 2008, section 514.966, subdivision 6, is amended to read:
32.24 		Subd. 6.Perfection. (a) An agricultural lien under this section is perfected if a 
32.25 	financing statement is filed pursuant to sections 336.9-501 to 336.9-530 and within the 
32.26 	time periods set forth in paragraphs (b) to (e) (f).  
32.27 	(b) A veterinarian's lien must be perfected on or before 180 days after the last item 
32.28 	of the veterinary service is performed.
32.29 	(c) A breeder's lien must be perfected by six months after the last date that breeding 
32.30 	services are provided the obligor.
32.31 	(d) Except as provided in paragraph (f), a livestock production input lien must be 
32.32 	perfected by six months after the last date that livestock production inputs are furnished 
32.33 	the obligor.
33.1 	(e) A feeder's lien must be perfected on or before 60 days after the last date that 
33.2 	feeding services are furnished the obligor.
33.3 	(f) A temporary livestock production input lien, under subdivision 3a, must be 
33.4 	perfected on or before 60 days after the last date that livestock production inputs are 
33.5 	furnished the obligor.

33.6 	Sec. 58. Laws 2007, chapter 45, article 1, section 3, subdivision 5, as amended by 
33.7 	Laws 2008, chapter 297, article 1, section 65, is amended to read:

33.8
33.9	Subd. 5. Administration and Financial 
Assistance
 		7,338,000 
		6,751,000 
	
33.10 	$1,005,000 the first year and $1,005,000 
33.11 	the second year are for continuation of 
33.12 	the dairy development and profitability 
33.13 	enhancement and dairy business planning 
33.14 	grant programs established under Laws 1997, 
33.15 	chapter 216, section 7, subdivision 2, and 
33.16 	Laws 2001, First Special Session chapter 2, 
33.17 	section 9, subdivision 2 . The commissioner 
33.18 	may allocate the available sums among 
33.19 	permissible activities, including efforts to 
33.20 	improve the quality of milk produced in the 
33.21 	state in the proportions that the commissioner 
33.22 	deems most beneficial to Minnesota's dairy 
33.23 	farmers. The commissioner must submit a 
33.24 	work plan detailing plans for expenditures 
33.25 	under this program to the chairs of the 
33.26 	house and senate committees dealing with 
33.27 	agricultural policy and budget on or before 
33.28 	the start of each fiscal year. If significant 
33.29 	changes are made to the plans in the course 
33.30 	of the year, the commissioner must notify the 
33.31 	chairs. 
33.32 	$50,000 the first year and $50,000 the 
33.33 	second year are for the Northern Crops 
33.34 	Institute. These appropriations may be spent 
33.35 	to purchase equipment. 
34.1 	$19,000 the first year and $19,000 the 
34.2 	second year are for a grant to the Minnesota 
34.3 	Livestock Breeders Association. 
34.4 	$250,000 the first year and $250,000 the 
34.5 	second year are for grants to the Minnesota 
34.6 	Agricultural Education Leadership Council 
34.7 	for programs of the council under Minnesota 
34.8 	Statutes, chapter 41D. 
34.9 	$600,000 the first year is for grants for 
34.10 	fertilizer research as awarded by the 
34.11 	Minnesota Agricultural Fertilizer Research 
34.12 	and Education Council under Minnesota 
34.13 	Statutes, section 18C.71. The amount 
34.14 	available to the commissioner pursuant 
34.15 	to Minnesota Statutes, section 18C.70, 
34.16 	subdivision 2, for administration of this 
34.17 	activity is available until February 1, 2009, 
34.18 	by which time the commissioner shall 
34.19 	report to the house and senate committees 
34.20 	with jurisdiction over agriculture finance. 
34.21 	The report must include the progress and 
34.22 	outcome of funded projects as well as the 
34.23 	sentiment of the council concerning the need 
34.24 	for additional research funded through an 
34.25 	industry checkoff fee. The amount available 
34.26 	for grants is available until June 30, 2011.
34.27 	$465,000 the first year and $465,000 the 
34.28 	second year are for payments to county and 
34.29 	district agricultural societies and associations 
34.30 	under Minnesota Statutes, section 38.02, 
34.31 	subdivision 1. Aid payments to county and 
34.32 	district agricultural societies and associations 
34.33 	shall be disbursed not later than July 15 of 
34.34 	each year. These payments are the amount of 
35.1 	aid owed by the state for an annual fair held 
35.2 	in the previous calendar year. 
35.3 	$65,000 the first year and $65,000 the second 
35.4 	year are for annual grants to the Minnesota 
35.5 	Turf Seed Council for basic and applied 
35.6 	research on the improved production of 
35.7 	forage and turf seed related to new and 
35.8 	improved varieties. The grant recipient may 
35.9 	subcontract with a qualified third party for 
35.10 	some or all of the basic and applied research. 
35.11 	$500,000 the first year and $500,000 the 
35.12 	second year are for grants to Second Harvest 
35.13 	Heartland on behalf of Minnesota's six 
35.14 	Second Harvest food banks for the purchase 
35.15 	of milk for distribution to Minnesota's food 
35.16 	shelves and other charitable organizations 
35.17 	that are eligible to receive food from the food 
35.18 	banks. Milk purchased under the grants must 
35.19 	be acquired from Minnesota milk processors 
35.20 	and based on low-cost bids. The milk must be 
35.21 	allocated to each Second Harvest food bank 
35.22 	serving Minnesota according to the formula 
35.23 	used in the distribution of United States 
35.24 	Department of Agriculture commodities 
35.25 	under The Emergency Food Assistance 
35.26 	Program (TEFAP). Second Harvest 
35.27 	Heartland must submit quarterly reports 
35.28 	to the commissioner on forms prescribed 
35.29 	by the commissioner. The reports must 
35.30 	include, but are not limited to, information 
35.31 	on the expenditure of funds, the amount 
35.32 	of milk purchased, and the organizations 
35.33 	to which the milk was distributed. Second 
35.34 	Harvest Heartland may enter into contracts 
35.35 	or agreements with food banks for shared 
35.36 	funding or reimbursement of the direct 
36.1 	purchase of milk. Each food bank receiving 
36.2 	money from this appropriation may use up to 
36.3 	two percent of the grant for administrative 
36.4 	expenses. 
36.5 	$100,000 the first year and $100,000 the 
36.6 	second year are for transfer to the Board of 
36.7 	Trustees of the Minnesota State Colleges and 
36.8 	Universities for mental health counseling 
36.9 	support to farm families and business 
36.10 	operators through farm business management 
36.11 	programs at Central Lakes College and 
36.12 	Ridgewater College. 
36.13 	$18,000 the first year and $18,000 the 
36.14 	second year are for grants to the Minnesota 
36.15 	Horticultural Society. 
36.16 	$50,000 is for a grant to the University of 
36.17 	Minnesota, Department of Horticultural 
36.18 	Science, Enology Laboratory, to upgrade 
36.19 	and purchase instrumentation to allow 
36.20 	rapid and accurate measurement of enology 
36.21 	components. This is a onetime appropriation 
36.22 	and is available until expended.

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

36.24 	Sec. 59. Laws 2008, chapter 296, article 1, section 25, the effective date, is amended to 
36.25 	read:

36.26 	EFFECTIVE DATE. This section is effective June 1, 2010 2011.

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

36.28 	Sec. 60. Laws 2009, chapter 94, article 1, section 3, subdivision 5, is amended to read:

36.29
36.30	Subd. 5.Administration and Financial 
Assistance
 		8,177,000
		7,037,000

36.31	Appropriations by Fund
	
36.32		2010
	2011
	
37.1	General
	7,377,000
	6,237,000
	
37.2	Agricultural
	800,000
	800,000
	
37.3 	$780,000 the first year and $755,000 the 
37.4 	second year are for continuation of the dairy 
37.5 	development and profitability enhancement 
37.6 	and dairy business planning grant programs 
37.7 	established under Laws 1997, chapter 
37.8 	216, section 7, subdivision 2, and Laws 
37.9 	2001, First Special Session chapter 2, 
37.10 	section 9, subdivision 2. The commissioner 
37.11 	may allocate the available sums among 
37.12 	permissible activities, including efforts to 
37.13 	improve the quality of milk produced in the 
37.14 	state in the proportions that the commissioner 
37.15 	deems most beneficial to Minnesota's dairy 
37.16 	farmers. The commissioner must submit a 
37.17 	work plan detailing plans for expenditures 
37.18 	under this program to the chairs of the house 
37.19 	of representatives and senate committees 
37.20 	dealing with agricultural policy and budget 
37.21 	on or before the start of each fiscal year. If 
37.22 	significant changes are made to the plans 
37.23 	in the course of the year, the commissioner 
37.24 	must notify the chairs.
37.25 	$50,000 the first year and $50,000 the 
37.26 	second year are for the Northern Crops 
37.27 	Institute. These appropriations may be spent 
37.28 	to purchase equipment.
37.29 	$19,000 the first year and $19,000 the 
37.30 	second year are for a grant to the Minnesota 
37.31 	Livestock Breeders Association.
37.32 	$250,000 the first year and $250,000 the 
37.33 	second year are for grants to the Minnesota 
37.34 	Agricultural Education and Leadership 
38.1 	Council for programs of the council under 
38.2 	Minnesota Statutes, chapter 41D.
38.3 	$474,000 the first year and $474,000 the 
38.4 	second year are for payments to county and 
38.5 	district agricultural societies and associations 
38.6 	under Minnesota Statutes, section 38.02, 
38.7 	subdivision 1. Aid payments to county and 
38.8 	district agricultural societies and associations 
38.9 	shall be disbursed no later than July 15 of 
38.10 	each year. These payments are the amount of 
38.11 	aid from the state for an annual fair held in 
38.12 	the previous calendar year.
38.13 	$1,000 the first year and $1,000 the second 
38.14 	year are for grants to the Minnesota State 
38.15 	Poultry Association.
38.16 	$65,000 the first year and $65,000 the second 
38.17 	year are for annual grants to the Minnesota 
38.18 	Turf Seed Council for basic and applied 
38.19 	research on the improved production of 
38.20 	forage and turf seed related to new and 
38.21 	improved varieties. The grant recipient may 
38.22 	subcontract with a qualified third party for 
38.23 	some or all of the basic and applied research.
38.24 	$50,000 the first year and $50,000 the 
38.25 	second year are for annual grants to the 
38.26 	Minnesota Turf Seed Council for basic 
38.27 	and applied agronomic research on native 
38.28 	plants, including plant breeding, nutrient 
38.29 	management, pest management, disease 
38.30 	management, yield, and viability. The grant 
38.31 	recipient may subcontract with a qualified 
38.32 	third party for some or all of the basic 
38.33 	or applied research. The grant recipient 
38.34 	must actively participate in the Agricultural 
38.35 	Utilization Research Institute's Renewable 
39.1 	Energy Roundtable and no later than 
39.2 	February 1, 2011, must report to the house of 
39.3 	representatives and senate committees with 
39.4 	jurisdiction over agriculture finance.
39.5 	$500,000 the first year and $500,000 the 
39.6 	second year are for grants to Second Harvest 
39.7 	Heartland on behalf of Minnesota's six 
39.8 	Second Harvest food banks for the purchase 
39.9 	of milk for distribution to Minnesota's food 
39.10 	shelves and other charitable organizations 
39.11 	that are eligible to receive food from the food 
39.12 	banks. Milk purchased under the grants must 
39.13 	be acquired from Minnesota milk processors 
39.14 	and based on low-cost bids. The milk must be 
39.15 	allocated to each Second Harvest food bank 
39.16 	serving Minnesota according to the formula 
39.17 	used in the distribution of United States 
39.18 	Department of Agriculture commodities 
39.19 	under The Emergency Food Assistance 
39.20 	Program (TEFAP). Second Harvest 
39.21 	Heartland must submit quarterly reports 
39.22 	to the commissioner on forms prescribed 
39.23 	by the commissioner. The reports must 
39.24 	include, but are not limited to, information 
39.25 	on the expenditure of funds, the amount 
39.26 	of milk purchased, and the organizations 
39.27 	to which the milk was distributed. Second 
39.28 	Harvest Heartland may enter into contracts 
39.29 	or agreements with food banks for shared 
39.30 	funding or reimbursement of the direct 
39.31 	purchase of milk. Each food bank receiving 
39.32 	money from this appropriation may use up to 
39.33 	two percent of the grant for administrative 
39.34 	expenses.
39.35 	$1,000,000 the first year is for the agricultural 
39.36 	growth, research, and innovation program 
40.1 	in Minnesota Statutes, section 41A.12. 
40.2 	Priority must be given to livestock programs 
40.3 	under Minnesota Statutes, section 17.118. 
40.4 	Priority for livestock grants shall be given 
40.5 	to persons who are beginning livestock 
40.6 	producers and livestock producers who are 
40.7 	rebuilding after a disaster that was due to 
40.8 	natural or other unintended conditions. The 
40.9 	commissioner may use up to 4.5 percent 
40.10 	of this appropriation for costs incurred to 
40.11 	administer the program. Any unencumbered 
40.12 	balance does not cancel at the end of the first 
40.13 	year and is available in the second year.
40.14 	$100,000 the first year and $100,000 the 
40.15 	second year are for transfer to the Board of 
40.16 	Trustees of the Minnesota State Colleges and 
40.17 	Universities for mental health counseling 
40.18 	support to farm families and business 
40.19 	operators through farm business management 
40.20 	programs at Central Lakes College and 
40.21 	Ridgewater College.
40.22 	$18,000 the first year and $18,000 the 
40.23 	second year are for grants to the Minnesota 
40.24 	Horticultural Society.
40.25 	Notwithstanding Minnesota Statutes, 
40.26 	section 18C.131, $800,000 the first year 
40.27 	and $800,000 the second year are from the 
40.28 	fertilizer account in the agricultural fund 
40.29 	for grants for fertilizer research as awarded 
40.30 	by the Minnesota Agricultural Fertilizer 
40.31 	Research and Education Council under 
40.32 	Minnesota Statutes, section 18C.71. The 
40.33 	amount appropriated in either fiscal year must 
40.34 	not exceed 57 percent of the inspection fee 
40.35 	revenue collected under Minnesota Statutes, 
41.1 	section 18C.425, subdivision 6, during the 
41.2 	previous fiscal year. No later than February 
41.3 	1, 2011, the commissioner shall report to 
41.4 	the legislative committees with jurisdiction 
41.5 	over agriculture finance. The report must 
41.6 	include the progress and outcome of funded 
41.7 	projects as well as the sentiment of the 
41.8 	council concerning the need for additional 
41.9 	research funds. The appropriation for the 
41.10 	first year is available until June 30, 2013, 
41.11 	and the appropriation for the second year is 
41.12 	available until June 30, 2014.
41.13 	$60,000 the first year is for a transfer to the 
41.14 	University of Minnesota Extension Service 
41.15 	for farm-to-school grants to school districts 
41.16 	in Minneapolis, Moorhead, White Earth, and 
41.17 	Willmar.
41.18 	$30,000 is for star farms program 
41.19 	development. The commissioner, in 
41.20 	consultation with other state and local 
41.21 	agencies, farm groups, conservation 
41.22 	groups, legislators, and other interested 
41.23 	persons, shall develop a proposal for a star 
41.24 	farms program. By January 15, 2010, the 
41.25 	commissioner shall submit the proposal to 
41.26 	the legislative committees and divisions 
41.27 	with jurisdiction over agriculture and 
41.28 	environmental policy and finance. This is a 
41.29 	onetime appropriation. * (The preceding 
41.30 	paragraph beginning "$30,000 is for star 
41.31 	farms program" was indicated as vetoed 
41.32 	by the governor.)
41.33 	$25,000 the first year is for the administration 
41.34 	of the Feeding Minnesota Task Force, under 
42.1 	new Minnesota Statutes, section 31.97. This 
42.2 	is a onetime appropriation.

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

42.4 	Sec. 61. APPROPRIATION; TERMINAL CAPACITY REPORT.
 42.5 	$40,000 is appropriated in fiscal year 2011 from the liquefied petroleum gas account 
42.6 	to the commissioner of agriculture for a terminal capacity report. This is a onetime 
42.7 	appropriation. The commissioner of agriculture, with assistance from the Office of Energy 
42.8 	Security, shall determine the total propane and anhydrous ammonia terminal capacity 
42.9 	located in the state and within 100 miles of the state's borders. The commissioner shall 
42.10 	also use projected grain yields and other relevant factors to estimate total agricultural 
42.11 	demand for propane and anhydrous ammonia in this state in the year 2020 and shall 
42.12 	develop a detailed plan for fully and economically satisfying this anticipated demand. No 
42.13 	later than January 15, 2011, the commissioner shall present the report to the legislative 
42.14 	committees with jurisdiction over agriculture finance.

42.15 	Sec. 62. DAIRY RESEARCH AND EDUCATION FACILITY; 
42.16 	COLLABORATION.
 42.17 	The commissioner of agriculture shall convene one or more meetings with milk 
42.18 	producers, other industry stakeholders, and representatives of the University of Minnesota 
42.19 	and Minnesota State Colleges and Universities System whose work relates to the dairy 
42.20 	industry to consider the elements of a dairy research and education facility which would 
42.21 	represent a partnership between higher education institutions and the dairy industry. No 
42.22 	later than February 1, 2011, the commissioner shall provide a report on facility and 
42.23 	financing options to the legislative committees with jurisdiction over agriculture finance.

42.24 	Sec. 63. BIOENERGY DEVELOPMENT; REPORT.
 42.25 	The commissioner of agriculture shall actively pursue federal and other resources 
42.26 	available to promote and achieve greater production and use of biofuels in this state, 
42.27 	including but not limited to increasing the availability of retail fuel dispensers for E85 and 
42.28 	intermediate ethanol-gasoline blends. No later than February 15, 2011, the commissioner 
42.29 	shall report on activities and accomplishments under this section to the legislative 
42.30 	committees with jurisdiction over agriculture finance.

42.31 	Sec. 64.  REPEALER.
 43.1 	Minnesota Statutes 2008, section 17.231, and Laws 2009, chapter 94, article 1, 
43.2 	section 106,  are repealed.

43.3 	ARTICLE 2
43.4 	VETERANS

43.5 	Section 1. Minnesota Statutes 2008, section 1.141, is amended by adding a subdivision 
43.6 	to read:
43.7 		Subd. 6.Folding of the state flag for presentation or display. The following 
43.8 	procedures constitute the proper way to fold the Minnesota State Flag for presentation or 
43.9 	display. Fold the flag four times lengthwise so that one section displays the three stars 
43.10 	of the state crest and the text "L'Etoile du Nord." Fold each side behind the displayed 
43.11 	section at a 90-degree angle so that the display section forms a triangle. Take the section 
43.12 	ending with the hoist and fold it at a 90-degree angle across the bottom of the display 
43.13 	section and then fold the hoist back over so it is aligned with the middle of the display 
43.14 	section. Fold the other protruding section directly upwards so that its edge is flush with 
43.15 	the display section and then fold it upwards along a 45-degree angle so that a mirror 
43.16 	of the display section triangle is formed. Fold the mirror section in half from the point 
43.17 	upwards, then fold the remaining portion upwards, tucking it between the display section 
43.18 	and the remainder of the flag.

43.19 	Sec. 2. Minnesota Statutes 2008, section 1.141, is amended by adding a subdivision to 
43.20 	read:
43.21 		Subd. 7.Folding of the state flag for storage. When folding the Minnesota State 
43.22 	Flag for storage, the proper procedure is to fold and store the flag in the same manner as 
43.23 	the national colors.

43.24 	Sec. 3. Minnesota Statutes 2009 Supplement, section 190.19, subdivision 2a, is 
43.25 	amended to read:
43.26 		Subd. 2a.Uses; veterans. Money appropriated to the Department of Veterans 
43.27 	Affairs from the Minnesota "Support Our Troops" account may be used for:
43.28 	(1) grants to veterans service organizations;
43.29 	(2) outreach to underserved veterans; and
43.30 	(3) providing services and programs for veterans and their families; and
43.31 	(3) (4) transfers to the vehicle services account for Gold Star license plates under 
43.32 	section 168.1253.

44.1 	Sec. 4. Minnesota Statutes 2008, section 197.455, is amended by adding a subdivision 
44.2 	to read:
44.3 		Subd. 5a.Teacher hiring. (a) Any public school under the state's Education Code 
44.4 	that chooses at any time to use a 100-point hiring method to evaluate applicants for 
44.5 	teaching positions is subject to the requirements of subdivisions 4 and 5 for determining 
44.6 	veterans preference points.
44.7 	(b) Any public school under the state's Education Code opting at any time not to use 
44.8 	a 100-point hiring method to evaluate applicants for teaching positions is exempt from 
44.9 	the requirements of subdivisions 4 and 5 for determining veterans preference points, but 
44.10 	must instead grant to any veteran who applies for a teaching position and who has proper 
44.11 	licensure for that position an interview for that position.

44.12 	Sec. 5. Minnesota Statutes 2009 Supplement, section 197.46, is amended to read:
44.13 	197.46 VETERANS PREFERENCE ACT; REMOVAL FORBIDDEN; RIGHT 
44.14 	OF MANDAMUS.
44.15 	Any person whose rights may be in any way prejudiced contrary to any of the 
44.16 	provisions of this section, shall be entitled to a writ of mandamus to remedy the wrong. 
44.17 	No person holding a position by appointment or employment in the several counties, 
44.18 	cities, towns, school districts and all other political subdivisions in the state, who is a 
44.19 	veteran separated from the military service under honorable conditions, shall be removed 
44.20 	from such position or employment except for incompetency or misconduct shown after a 
44.21 	hearing, upon due notice, upon stated charges, in writing.
44.22 	Any veteran who has been notified of the intent to discharge the veteran from an 
44.23 	appointed position or employment pursuant to this section shall be notified in writing of 
44.24 	such intent to discharge and of the veteran's right to request a hearing within 60 days of 
44.25 	receipt of the notice of intent to discharge. The failure of a veteran to request a hearing 
44.26 	within the provided 60-day period shall constitute a waiver of the right to a hearing. Such 
44.27 	failure shall also waive all other available legal remedies for reinstatement.
44.28 	Request for a hearing concerning such a discharge shall be made in writing and 
44.29 	submitted by mail or personal service to the employment office of the concerned employer 
44.30 	or other appropriate office or person.
44.31 	In all governmental subdivisions having an established civil service board or 
44.32 	commission, or merit system authority, such hearing for removal or discharge shall be 
44.33 	held before such civil service board or commission or merit system authority. Where no 
44.34 	such civil service board or commission or merit system authority exists, such hearing 
44.35 	shall be held by a board of three persons appointed as follows: one by the governmental 
45.1 	subdivision, one by the veteran, and the third by the two so selected. In the event the two 
45.2 	persons so selected do not appoint the third person within ten days after the appointment 
45.3 	of the last of the two, then the judge of the district court of the county wherein the 
45.4 	proceeding is pending, or if there be more than one judge in said county then any judge in 
45.5 	chambers, shall have jurisdiction to appoint, and upon application of either or both of the 
45.6 	two so selected shall appoint, the third person to the board and the person so appointed 
45.7 	by the judge with the two first selected shall constitute the board. The veteran may 
45.8 	appeal from the decision of the board upon the charges to the district court by causing 
45.9 	written notice of appeal, stating the grounds thereof, to be served upon the governmental 
45.10 	subdivision or officer making the charges within 15 days after notice of the decision 
45.11 	and by filing the original notice of appeal with proof of service thereof in the office of 
45.12 	the court administrator of the district court within ten days after service thereof. Nothing 
45.13 	in section 197.455 or this section shall be construed to apply to the position of private 
45.14 	secretary, superintendent of schools, or one chief deputy of any elected official or head of 
45.15 	a department, or to any person holding a strictly confidential relation to the appointing 
45.16 	officer. Nothing in this section shall be construed to apply to the position of teacher.
45.17 	The burden of establishing such relationship shall be upon the appointing officer in all 
45.18 	proceedings and actions relating thereto.
45.19 	All officers, boards, commissions, and employees shall conform to, comply with, 
45.20 	and aid in all proper ways in carrying into effect the provisions of section 197.455 and this 
45.21 	section notwithstanding any laws, charter provisions, ordinances or rules to the contrary. 
45.22 	Any willful violation of such sections by officers, officials, or employees is a misdemeanor.

45.23 	Sec. 6. Minnesota Statutes 2008, section 197.481, subdivision 1, is amended to read:
45.24 		Subdivision 1.Petition. A veteran, as defined by section 197.447, who has been 
45.25 	denied rights by the state or any political subdivision, municipality, or other public agency 
45.26 	of the state as authorized by the Veterans Preference Act under section 43A.11, 197.46, 
45.27 	197.48, or 197.455 may petition the commissioner of veterans affairs for an order directing 
45.28 	the agency to grant the veteran such relief the commissioner finds justified by said statutes. 
45.29 	The petition shall be submitted via United States mail and contain:
45.30 	(1) the name, address, telephone number, and acknowledgednotarized original 
45.31 	signature of the veteran;
45.32 	(2) the names, telephone numbers, and addresses of all agencies and persons that 
45.33 	will be directly affected if the petition is granted;
45.34 	(3) a concise statement of the facts giving rise to the veteran's rights and a concise 
45.35 	statement showing the manner in which rights were denied;
46.1 	(4) a statement of the relief requested.; and
46.2 	(5) a copy of the veteran's Form DD214 (Separation or Discharge from Active Duty).

46.3 	Sec. 7. Minnesota Statutes 2008, section 197.481, subdivision 2, is amended to read:
46.4 		Subd. 2.Service. Upon receipt and authorization verification of a complete petition 
46.5 	herein, the commissioner shall serve a copy of same, by certified mail, on all agencies and 
46.6 	persons named therein and on such other agencies or persons as in the judgment of the 
46.7 	commissioner should in justice be parties to the proceeding. The veteran and all agencies 
46.8 	and persons served shall be parties to the proceeding.

46.9 	Sec. 8. Minnesota Statutes 2008, section 197.481, subdivision 4, is amended to read:
46.10 		Subd. 4.Hearing. The commissioner shall hold schedule a hearing on the petition 
46.11 	of any party to be held or conducted within 20 120 days of serving, or being served with 
46.12 	the authorized and complete petition. The veteran may demand an opportunity to be heard 
46.13 	at a time set by the commissioner. A party who fails to demand such hearing within 20 
46.14 	days shall be heard only by permission of the commissioner, except that if any party 
46.15 	demands to be heardAt the hearing, all parties shall have the right to be heard. A hearing 
46.16 	hereunder shall be conducted and orders issued in accord with sections 14.57 to 14.60
46.17 	and 14.62, at the office of the commissioner or at a place the commissioner designates. 
46.18 	The commissioner shall notify all parties, by certified mail, of the date, time, and place 
46.19 	of the hearing. 

46.20 	Sec. 9. Minnesota Statutes 2008, section 197.60, subdivision 1, is amended to read:
46.21 		Subdivision 1.Appointment; administrative support. The county board of any 
46.22 	county except Clay County, or the county boards of any two or more counties acting 
46.23 	pursuant to the provisions of section 197.602, shall appoint a veterans service officer 
46.24 	and shall provide necessary clerical help, office space, equipment, and supplies for the 
46.25 	officer, together with reimbursement for mileage and other traveling expenses necessarily 
46.26 	incurred in the performance of duties; and may appoint one or more assistant veterans 
46.27 	service officers who shall have the qualifications prescribed in are qualified under section 
46.28 	197.601. The county board of Clay County may appoint a veterans service officer and 
46.29 	assistant veterans service officers as provided in this subdivision.The county board or 
46.30 	boards shall provide necessary clerical help, office space, equipment, and supplies for the 
46.31 	officer, and reimbursement for mileage and other traveling expenses necessarily incurred 
46.32 	in the performance of duties. Subject to the direction and control of the veterans service 
46.33 	officer, the assistant veterans service officer may exercise all the powers, and shall perform 
47.1 	the duties, of the veterans service officer, and shall be is subject to all the provisions of 
47.2 	sections 197.60 to 197.606 relating to a veterans service officer. Every county officer and 
47.3 	agency shall cooperate with the veterans service officer and shall provide the officer with 
47.4 	information necessary in connection with the performance of duties.  

47.5 	EFFECTIVE DATE. This section is effective July 1, 2010.

47.6 	Sec. 10. Minnesota Statutes 2008, section 197.601, is amended to read:
47.7 	197.601 QUALIFICATIONS OF VETERANS SERVICE OFFICERS.
47.8 	No person shall be appointed a veterans service officer or an assistant county 
47.9 	veterans service officer under sections 197.60 to 197.606without the following 
47.10 	qualifications unless the person is:  
47.11 	(1) residence in a resident of the state of Minnesota;
47.12 	(2) citizenship in a citizen of the United States; and
47.13 	(3) a veteran, as defined in section 197.447;.
47.14 	(4) education and training for the duties of veterans service officer;
47.15 	(5) knowledge of the law and the regulations and rulings of the United States 
47.16 	Veterans Administration applicable to cases before it and the administration thereof.
47.17 	In addition, a person accepting appointment to the position of county veterans 
47.18 	service officer or assistant county veterans service officer or other equivalent assistant 
47.19 	position must agree to receive, within six months of the appointment, training and 
47.20 	education for the duties of the position, including development of an effective working 
47.21 	knowledge of relevant laws, rules, and regulations pertaining to the United States 
47.22 	Department of Veterans Affairs, as applicable to veterans cases before the department and 
47.23 	the administration of those cases.

47.24 	Sec. 11. Minnesota Statutes 2008, section 197.605, is amended to read:
47.25 	197.605 SUPERVISION DEPARTMENT AS A RESOURCE TO COUNTIES.
47.26 		Subdivision 1.Methods of operation Resources available. Every veterans service 
47.27 	officer appointed under sections 197.60 to 197.606 shall be under the general supervision 
47.28 	of the commissioner of veterans affairs as to methods of operation.The commissioner of 
47.29 	veterans affairs shall make resources available within the Department of Veterans Affairs 
47.30 	to every county that operates a county veterans service office, to assist the county with 
47.31 	maintaining efficient and effective services to veterans. To receive available resources 
47.32 	from the department, a county must formally request them from the commissioner and 
47.33 	invite the commissioner or the commissioner's designee or designees into the county 
48.1 	as necessary to provide those resources. The commissioner shall consult with the 
48.2 	Association of Minnesota Counties and the Minnesota Association of County Veterans 
48.3 	Service Officers in developing a list of resources available to counties in support of their 
48.4 	county veterans service offices.
48.5 		Subd. 2.Use of agencies to present claims. Every veterans service officer and 
48.6 	assistant veterans service officer appointed under sections 197.60 to 197.606 shall use 
48.7 	the Minnesota Department of Veterans Affairs or any organization recognized by the 
48.8 	United States Department of Veterans Administration Affairs, as may be designated by the 
48.9 	veteran by power of attorney, in the presentation of claims to the United States Department 
48.10 	of Veterans Administration Affairs for the benefits referred to in section 197.603.  
48.11 		Subd. 3.Rules. The commissioner of veterans affairs shall have authority to 
48.12 	prescribe such rules as are necessary for compliance with this section and the efficient 
48.13 	uniform administration of sections 197.60 to 197.606. Such rules shall not apply to the 
48.14 	appointment, tenure, compensation, or working conditions of a veterans service officer 
48.15 	appointed under sections 197.60 to 197.606.  
48.16 		Subd. 4.Certification. The commissioner of veterans affairs shall establish a 
48.17 	certification process for veterans service officers. In doing so, the commissioner shall 
48.18 	consult with the Minnesota Association of County Veterans Service Officers.

48.19 	Sec. 12. Minnesota Statutes 2008, section 197.606, is amended to read:
48.20 	197.606 CLASSED AS COUNTY EMPLOYEES.
48.21 	Veterans service officers and assistant veterans service officers appointed under 
48.22 	sections 197.60 to 197.606 are employees of the counties by which they are employed, and 
48.23 	are under the exclusive jurisdiction and control of such those counties and the Department 
48.24 	of Veterans Affairs as herein provided.  

48.25 	Sec. 13. Minnesota Statutes 2008, section 197.609, subdivision 1, is amended to read:
48.26 		Subdivision 1.Establishment and administration. An education program for 
48.27 	county veterans service officers is established to be administered by the commissioner of 
48.28 	veterans affairs, with assistance and advice from the Minnesota Association of County 
48.29 	Veterans Service Officers.

48.30 	Sec. 14. Minnesota Statutes 2008, section 197.609, subdivision 2, is amended to read:
48.31 		Subd. 2.Eligibility. To be eligible for the program in this section, a person must 
48.32 	currently be employed as a county veterans service officer or assistant county veterans 
48.33 	service officer, as authorized by sections 197.60 to 197.606, and be certified to serve in 
49.1 	that position by the commissioner of veterans affairs or be serving a probationary period 
49.2 	as authorized by section 197.60, subdivision 2.  

49.3 	Sec. 15. Minnesota Statutes 2008, section 197.75, subdivision 1, is amended to read:
49.4 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
49.5 	section.
49.6 	(b) "Commissioner" means the commissioner of veterans affairs.
49.7 	(c) "Deceased veteran" means a veteran who was a Minnesota resident within six 
49.8 	months of the time of the person's entry into the United States armed forces and who has 
49.9 	died as a result of thatthe person's military service, as determined by the United States 
49.10 	Veterans Administration, and who was a resident of this state: (1) within six months of 
49.11 	entering the United States armed forces, or (2) for the six months preceding the veteran's 
49.12 	date of death. 
49.13 	(d) "Eligible child" means a person who:
49.14 	(1) is the natural or adopted son or daughterchild or stepchild of a deceased veteran; 
49.15 	and
49.16 	(2) is a student making satisfactory academic progress at an eligible institution 
49.17 	of higher education.
49.18 	(e) "Eligible institution" means a postsecondary educational institution located in 
49.19 	this state that either (1) is operated by this state, or (2) is operated publicly or privately 
49.20 	and, as determined by the office, maintains academic standards substantially equivalent 
49.21 	to those of comparable institutions operated in this state.
49.22 	(f) "Eligible spouse" means the surviving spouse of a deceased veteran.
49.23 	(g) "Eligible veteran" means a veteran who:
49.24 	(1) is a student making satisfactory academic progress at an eligible institution 
49.25 	of higher education;
49.26 	(2) had Minnesota as the person's state of residence at the time of the person's 
49.27 	enlistment or any reenlistment into the United States armed forces, as shown by the 
49.28 	person's federal form DD-214 or other official documentation to the satisfaction of the 
49.29 	commissioner;
49.30 	(3) except for benefits under this section, has no remaining military or veteran-related 
49.31 	educational assistance benefits for which the person may have been entitled; and
49.32 	(4) while using the educational assistance authorized in this section, remains a 
49.33 	resident student as defined in section 136A.101, subdivision 8.
49.34 	(h) "Satisfactory academic progress" has the meaning given in section 136A.101, 
49.35 	subdivision 10.
50.1 	(i) "Student" has the meaning given in section 136A.101, subdivision 7.
50.2 	(j) "Veteran" has the meaning given in section 197.447.

50.3 	EFFECTIVE DATE. This section is effective July 1, 2010, for educational benefits 
50.4 	provided to an eligible child or eligible spouse on or after that date.

50.5 	Sec. 16. PLANNING NEW VETERANS CEMETERIES.
 50.6 	The commissioner of veterans affairs shall determine a suitable site and plan for 
50.7 	three new state veterans cemeteries, one to be located  in northeastern Minnesota, one to 
50.8 	be located in southeastern Minnesota, and one to be located in southwestern Minnesota. 
50.9 	In determining the site for a cemetery, the commissioner shall consider available public 
50.10 	land options and shall seek proposals for donated land from interested counties, local 
50.11 	communities, civic organizations, veterans service organizations, and individuals. For 
50.12 	the veterans cemetery in southwestern Minnesota, the commissioner must work with the 
50.13 	commissioner of natural resources to secure a cemetery site at Fort Ridgely State Park, if 
50.14 	feasible, or on other public land in that immediate vicinity.
50.15 	The commissioner's planning process for a state veterans cemetery must include, at a 
50.16 	minimum, the following actions:
50.17 	(1) determining the need for the cemetery;
50.18 	(2) investigating the availability of suitable land for the cemetery;
50.19 	(3) assessment of impacts of the cemetery;
50.20 	(4) encouragement of support from veteran service organizations and local 
50.21 	governments; and 
50.22 	(5) preparation and submission of a preapplication for a grant from the United States 
50.23 	Department of Veterans Affairs for commitment of funding for establishing the cemetery.
50.24 	By January 15, 2011, the commissioner shall report to the chair and ranking minority 
50.25 	member of the house of representatives and senate committees having responsibility for 
50.26 	veterans affairs with a report of the commissioner's progress in implementing this section.

50.27 	Sec. 17. NONCOMPLIANCE.
 50.28 	A county that on July 1, 2010, is noncompliant with regard to the qualifications of 
50.29 	an assistant county veterans service officer, under Minnesota Statutes, section 197.601, 
50.30 	must comply with the requirements of that section no later than June 30, 2013, and must 
50.31 	remain in compliance after that date.

50.32 	Sec. 18. EFFECTIVE DATE.
 51.1 	Sections 1, 2, and 16 are effective the day following final enactment. All other 
51.2 	sections are effective July 1, 2010.