1.1 	A bill for an act
1.2 	relating to state government; changing certain pesticide control provisions; 
1.3 	authorizing waiver of a fee; providing for control of bovine tuberculosis; 
1.4 	eliminating the native grasses and wildflower seed production and incentive 
1.5 	program; authorizing ownership of agricultural land by certain nonprofit 
1.6 	corporations; requiring tree care and tree trimming company registration; 
1.7 	regulating certain sale and distribution of firewood; authorizing individuals and 
1.8 	entities to take certain easements in agricultural land; allowing a temporary 
1.9 	lien for livestock production inputs for 45 days following a mediation request 
1.10 	requiring reports; clarifying the role of the commissioner and Department of 
1.11 	Veterans Affairs in providing certain resources for the county veterans service 
1.12 	offices; modifying a residency requirement for purposes of eligibility for higher 
1.13 	educational benefits for the surviving spouse and children of a deceased veteran 
1.14 	who dies as a result of military service; repealing authorization for a license plate; 
1.15 	repealing a requirement that the Department of Veterans Affairs report on the 
1.16 	status of a construction project priority listing; appropriating money;amending 
1.17 	Minnesota Statutes 2008, sections 3.737, subdivision 4; 17.03, by adding a 
1.18 	subdivision; 18B.31, subdivision 5; 18B.36, subdivision 1; 18B.37, subdivision 
1.19 	4; 18G.07; 28A.082, subdivision 1; 35.244, subdivisions 1, 2; 197.60, subdivision 
1.20 	1; 197.601; 197.605; 197.606; 197.609, subdivisions 1, 2; 197.75, subdivision 1; 
1.21 	239.092; 239.093; 500.221, subdivisions 2, 4; 500.24, subdivision 2; 514.965, 
1.22 	subdivision 2; 514.966, subdivision 6, by adding a subdivision; Minnesota 
1.23 	Statutes 2009 Supplement, sections 3.737, subdivision 1; 18B.316, subdivision 
1.24 	10; Laws 2008, chapter 296, article 1, section 25; proposing coding for new 
1.25 	law in Minnesota Statutes, chapters 17; 38; repealing Minnesota Statutes 2008, 
1.26 	sections 17.231; 168.1251; 343.26; Laws 2009, chapter 94, article 3, section 23.
1.27 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.28 	ARTICLE 1
1.29 	AGRICULTURE

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

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

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

4.1 	Sec. 4. [17.459] HORSES.
4.2 		Subdivision 1.Classification as livestock. Horses and other equines raised for the 
4.3 	purposes of riding, driving, farm or ranch work, competition, racing, recreation, sale, or as 
4.4 	breeding stock are livestock. Horses and their products are livestock and farm products for 
4.5 	purposes of financial transactions and collateral.
4.6 		Subd. 2.Agricultural pursuit. Raising horses and other equines is agricultural 
4.7 	production and an agricultural pursuit.
4.8 		Subd. 3.Nonapplicability for property tax laws. This section does not apply to 
4.9 	the treatment of land used for raising horses under chapter 273.

4.10 	Sec. 5. Minnesota Statutes 2008, section 18B.31, subdivision 5, is amended to read:
4.11 		Subd. 5.Application fee. (a) An application for a pesticide dealer license must be 
4.12 	accompanied by a nonrefundable application fee of $150.
4.13 	(b) If an application for renewal of a pesticide dealer license is not filed before 
4.14 	January 1 of the year for which the license is to be issued expires, an additional fee of $20
4.15 	50 percent of the application fee must be paid by the applicant before the commissioner 
4.16 	may issue the license is issued.

4.17 	Sec. 6. Minnesota Statutes 2009 Supplement, section 18B.316, subdivision 10, is 
4.18 	amended to read:
4.19 		Subd. 10.Application fee. (a) An application for an agricultural pesticide dealer 
4.20 	license, or a renewal of an agricultural pesticide dealer license, must be accompanied 
4.21 	by a nonrefundable fee of $150.
4.22 	(b) If an application for renewal of an agricultural pesticide dealer license is not filed 
4.23 	before January of the year for which the license is to be issued expires, an additional fee of 
4.24 	50 percent of the application fee must be paid by the applicant before the commissioner 
4.25 	may issue the license.

4.26 	Sec. 7. Minnesota Statutes 2008, section 18B.36, subdivision 1, is amended to read:
4.27 		Subdivision 1.Requirement. (a) Except for a licensed commercial or 
4.28 	noncommercial applicator, only a certified private applicator may use a restricted use 
4.29 	pesticide to produce an agricultural commodity:
4.30 	(1) as a traditional exchange of services without financial compensation;
4.31 	(2) on a site owned, rented, or managed by the person or the person's employees; or
4.32 	(3) when the private applicator is one of two or fewer employees and the owner or 
4.33 	operator is a certified private applicator or is licensed as a noncommercial applicator.
5.1 	(b) A private applicator person may not purchase a restricted use pesticide without 
5.2 	presenting a license card, certified private applicator card, or the card number.

5.3 	Sec. 8. Minnesota Statutes 2008, section 18B.37, subdivision 4, is amended to read:
5.4 		Subd. 4.Storage, handling, incident response, and disposal plan. A commercial
5.5 	pesticide dealer, agricultural pesticide dealer, or a commercial, noncommercial, or 
5.6 	structural pest control applicator or the business that the applicator is employed by must 
5.7 	develop and maintain a plan that describes its pesticide storage, handling, incident 
5.8 	response, and disposal practices. The plan must be kept at a principal business site 
5.9 	or location within this state and must be submitted to the commissioner upon request 
5.10 	on forms provided by the commissioner. The plan must be available for inspection by 
5.11 	the commissioner.

5.12 	Sec. 9. Minnesota Statutes 2008, section 18G.07, is amended to read:
5.13 	18G.07 TREE CARE AND TREE TRIMMING COMPANY REGISTRY
5.14 	REGISTRATION.
5.15 		Subdivision 1.Creation of registry. (a) The commissioner shall maintain a 
5.16 	list of all persons and companies that provide tree care or tree trimming services in 
5.17 	Minnesota. All tree care providers, tree trimmers, and persons who remove trees, limbs, 
5.18 	branches, brush, or shrubs for hire and advertise their services must provide the following 
5.19 	information tobe registered by the commissioner:.
5.20 	(b) Persons or companies who are required to be registered under paragraph (a), 
5.21 	must register annually by providing the following to the commissioner:
5.22 	(1) accurate and up-to-date business name, address, and telephone number;
5.23 	(2) a complete list of all Minnesota counties in which they work; and
5.24 	(3) a complete list of persons in the business who are certified by the International 
5.25 	Society of Arborists a nonrefundable fee of $25 for initial application or renewing the 
5.26 	registration.
5.27 	(c) All persons and companies required to be registered under paragraph (a) must 
5.28 	register before conducting the activities specified in paragraph (a). Annual registration 
5.29 	expires December 31, must be renewed annually, and the renewal fee remitted by January 
5.30 	7 of the year for which it is issued. In addition, a penalty of ten percent of the renewal fee 
5.31 	due must be charged for each month, or portion of a month, that the fee is delinquent up to 
5.32 	a maximum of 30 percent for any application for renewal postmarked after December 31.
6.1 		Subd. 2.Information dissemination. The commissioner shall provide registered 
6.2 	tree care companies with information and data regarding any existing or potential 
6.3 	regulated forest pest infestations within the state.
6.4 		Subd. 3.Violation. It is unlawful for a person who is required to be registered 
6.5 	under subdivision 1 to provide tree care or tree trimming services in Minnesota without 
6.6 	being registered with the commissioner.

6.7 	EFFECTIVE DATE. This section is effective January 1, 2011.

6.8 	Sec. 10. Minnesota Statutes 2008, section 28A.082, subdivision 1, is amended to read:
6.9 		Subdivision 1.Fees; application. The fees for review of food handler facility floor 
6.10 	plans under the Minnesota Food Code are based upon the square footage of the structure 
6.11 	being newly constructed, remodeled, or converted. The fees for the review shall be:

6.12		square footage
		review fee
		
6.13		0 - 4,999
........	$
	200.00
		
6.14		5,000 - 24,999
........	$
	275.00
		
6.15		25,000 plus
........	$
	425.00
		
6.16 	The applicant must submit the required fee, review application, plans, equipment 
6.17 	specifications, materials lists, and other required information on forms supplied by the 
6.18 	department at least 30 days prior to commencement of construction, remodeling, or 
6.19 	conversion. The commissioner may waive this fee after determining that the facility's 
6.20 	principal mode of business is not the sale of food and that the facility sells only 
6.21 	prepackaged foods.

6.22 	Sec. 11. Minnesota Statutes 2008, section 35.244, subdivision 1, is amended to read:
6.23 		Subdivision 1. Designation of zones. The board has the authority to may establish 
6.24 	zones for the control and eradication of tuberculosis and restrict the movement of cattle, 
6.25 	bison, goats, and farmed cervidae within and between tuberculosis zones in the state. 
6.26 	Zones within the state may be designated as accreditation preparatory, modified accredited, 
6.27 	modified accredited advanced, or accredited free as those terms are defined in Code of 
6.28 	Federal Regulations, title 9, part 77. The board may designate bovine tuberculosis control 
6.29 	zones that contain not more than 325 herds.

6.30 	Sec. 12. Minnesota Statutes 2008, section 35.244, subdivision 2, is amended to read:
6.31 		Subd. 2. Requirements within a tuberculosis control within modified accredited
6.32 	zone. In a modified accredited tuberculosis control zone, the board has the authority to
6.33 	may: 
7.1 	(1) require owners of cattle, bison, goats, or farmed cervidae to report personal 
7.2 	contact information and location of livestock to the board; 
7.3 	(2) require a permit or movement certificates for all cattle, bison, goats, and farmed 
7.4 	cervidae moving between premises within the zone or leaving or entering the zone; 
7.5 	(3) require official identification of all cattle, bison, goats, and farmed cervidae 
7.6 	within the zone or leaving or entering the zone; 
7.7 	(4) require a whole-herd tuberculosis test on each herd of cattle, bison, goats, or 
7.8 	farmed cervidae when any of the animals in the herd is kept on a premises within the zone; 
7.9 	(5) require a negative tuberculosis test within 60 days prior to movement for any 
7.10 	individual cattle, bison, goat, or farmed cervidae moved from a premises in the zone to 
7.11 	another location in Minnesota, with the exception of cattle moving under permit directly 
7.12 	to a slaughter facility under state or federal inspection; 
7.13 	(6) require a whole-herd tuberculosis test within 12 months prior to moving 
7.14 	cattle, bison, goats, or farmed cervidae from premises in the zone to another location 
7.15 	in Minnesota; 
7.16 	(7) require annual herd inventories on all cattle, bison, goat, or farmed cervidae 
7.17 	herds; and 
7.18 	(8) require that a risk assessment be performed to evaluate the interaction of 
7.19 	free-ranging deer and elk with cattle, bison, goat, and farmed cervidae herds and require 
7.20 	the owner to implement the recommendations of the risk assessment. 

7.21 	Sec. 13. [38.345] APPROPRIATIONS BY MUNICIPALITIES.
7.22 	The council of any city and the board of supervisors of any town may spend money 
7.23 	for county extension work, as provided in sections 38.33 to 38.38.

7.24 	Sec. 14. Minnesota Statutes 2008, section 239.092, is amended to read:
7.25 	239.092 SALE FROM BULK.
7.26 	(a) Bulk sales of commodities, when the buyer and seller are not both present to 
7.27 	witness the measurement, must be accompanied by a delivery ticket containing the 
7.28 	following information:
7.29 	(1) the name and address of the person who weighed or measured the commodity;
7.30 	(2) the date delivered;
7.31 	(3) the quantity delivered;
7.32 	(4) the count of individually wrapped packages delivered, if more than one is 
7.33 	included in the quantity delivered;
8.1 	(5) the quantity on which the price is based, if different than the quantity delivered; 
8.2 	and
8.3 	(6) the identity of the commodity in the most descriptive terms commercially 
8.4 	practicable, including representations of quality made in connection with the sale.
8.5 	(b) This section is not intended to conflict with the bulk sale requirements of the 
8.6 	Department of Agriculture. If a conflict occurs, the law and rules of the Department of 
8.7 	Agriculture govern.
8.8 	(c) Firewood sold or distributed across state boundaries or more than 100 miles 
8.9 	from its origin must include delivery ticket information regarding the harvest locations 
8.10 	of the wood by county and state.
8.11 	(d) Paragraph (c) may be enforced using the authority granted in this chapter or 
8.12 	section 18J.05 or 84D.13.

8.13 	Sec. 15. Minnesota Statutes 2008, section 239.093, is amended to read:
8.14 	239.093 INFORMATION REQUIRED WITH PACKAGE.
8.15 	(a) A package offered, exposed, or held for sale must bear a clear and conspicuous 
8.16 	declaration of:
8.17 	(1) the identity of the commodity in the package, unless the commodity can be easily 
8.18 	identified through the wrapper or container;
8.19 	(2) the net quantity in terms of weight, measure, or count;
8.20 	(3) the name and address of the manufacturer, packer, or distributor, if the packages 
8.21 	were not produced on the premises where they are offered, exposed, or held for sale; and
8.22 	(4) the unit price, if the packages are part of a lot containing random weight 
8.23 	packages of the same commodity.
8.24 	(b) This section is not intended to conflict with the packaging requirements of the 
8.25 	Department of Agriculture. If a conflict occurs, the laws and rules of the Department of 
8.26 	Agriculture govern.
8.27 	(c) Firewood sold or distributed across state boundaries or more than 100 miles 
8.28 	from its origin must include information regarding the harvest locations of the wood by 
8.29 	county and state on each label or wrapper.
8.30 	(d) Paragraph (c) may be enforced using the authority granted in this chapter or 
8.31 	section 18J.05 or 84D.13.

8.32 	Sec. 16. Minnesota Statutes 2008, section 500.221, subdivision 2, is amended to read:
8.33 		Subd. 2.Aliens and non-American corporations. Except as hereinafter provided, 
8.34 	no natural person shall acquire directly or indirectly any interest in agricultural land unless 
9.1 	the person is a citizen of the United States or a permanent resident alien of the United 
9.2 	States. In addition to the restrictions in section 500.24, no corporation, partnership, 
9.3 	limited partnership, trustee, or other business entity shall directly or indirectly, acquire 
9.4 	or otherwise obtain any interest, whether legal, beneficial or otherwise, in any title to 
9.5 	agricultural land unless at least 80 percent of each class of stock issued and outstanding or 
9.6 	80 percent of the ultimate beneficial interest of the entity is held directly or indirectly by 
9.7 	citizens of the United States or permanent resident aliens. This section shall not apply: 
9.8 	(1) to agricultural land that may be acquired by devise, inheritance, as security for 
9.9 	indebtedness, by process of law in the collection of debts, or by any procedure for the 
9.10 	enforcement of a lien or claim thereon, whether created by mortgage or otherwise. All 
9.11 	agricultural land acquired in the collection of debts or by the enforcement of a lien or 
9.12 	claim shall be disposed of within three years after acquiring ownership;
9.13 	(2) to citizens or subjects of a foreign country whose rights to hold land are secured 
9.14 	by treaty;
9.15 	(3) to lands used for transportation purposes by a common carrier, as defined in 
9.16 	section 218.011, subdivision 10; 
9.17 	(4) to lands or interests in lands acquired for use in connection with (i) the production 
9.18 	of timber and forestry products by a corporation organized under the laws of Minnesota, 
9.19 	or (ii) mining and mineral processing operations. Pending the development of agricultural 
9.20 	land for the production of timber and forestry products or mining purposes the land may 
9.21 	not be used for farming except under lease to a family farm, a family farm corporation or 
9.22 	an authorized farm corporation;
9.23 	(5) to agricultural land operated for research or experimental purposes if the 
9.24 	ownership of the agricultural land is incidental to the research or experimental objectives 
9.25 	of the person or business entity and the total acreage owned by the person or business 
9.26 	entity does not exceed the acreage owned on May 27, 1977;
9.27 	(6) to the purchase of any tract of 40 acres or less for facilities incidental to pipeline 
9.28 	operation by a company operating a pipeline as defined in section 216G.01, subdivision 3; 
9.29 	(7) to agricultural land and land capable of being used as farmland in vegetable 
9.30 	processing operations that is reasonably necessary to meet the requirements of pollution 
9.31 	control law or rules; or
9.32 	(8) to an interest in agricultural land held on the August 1, 2003, by a natural person 
9.33 	with a nonimmigrant treaty investment visa, pursuant to United States Code, title 8, 
9.34 	section 1101(a)15(E)(ii), if, within five years after August 1, 2003, the person:
9.35 	(i) disposes of all agricultural land held; or
10.1 	(ii) becomes a permanent resident alien of the United States or a United States 
10.2 	citizen.; or
10.3 	(9) to an easement taken by an individual or entity for the installation and repair 
10.4 	of transmission lines and for wind rights.

10.5 	Sec. 17. Minnesota Statutes 2008, section 500.221, subdivision 4, is amended to read:
10.6 		Subd. 4.Reports. (a) Any natural person, corporation, partnership, limited 
10.7 	partnership, trustee, or other business entity prohibited from future acquisition of 
10.8 	agricultural land may retain title to any agricultural land lawfully acquired within this state 
10.9 	prior to June 1, 1981, but shall file a report with the commissioner of agriculture annually 
10.10 	before January 31 containing a description of all agricultural land held within this state, 
10.11 	the purchase price and market value of the land, the use to which it is put, the date of 
10.12 	acquisition and any other reasonable information required by the commissioner.
10.13 	(b) An individual or entity that qualifies for an exemption under subdivision 2, clause 
10.14 	(2) or (9), and owns an interest in agricultural land shall file a report with the commissioner 
10.15 	of agriculture within 30 days of acquisition and annually thereafter by January 31, 
10.16 	containing a description of all interests in agricultural land held within this state, the 
10.17 	purchase price of the interest and market value of the land, the use to which it is put, the 
10.18 	date of acquisition, and any other reasonable information required by the commissioner.
10.19 	(c) The commissioner shall make the information available to the public.
10.20 	(d)  All required annual reports shall include a filing fee of $50 plus $10 for each 
10.21 	additional quarter section of land.

10.22 	Sec. 18. Minnesota Statutes 2008, section 500.24, subdivision 2, is amended to read:
10.23 		Subd. 2.Definitions. The definitions in this subdivision apply to this section.
10.24 	(a) "Farming" means the production of (1) agricultural products; (2) livestock or 
10.25 	livestock products; (3) milk or milk products; or (4) fruit or other horticultural products. It 
10.26 	does not include the processing, refining, or packaging of said products, nor the provision 
10.27 	of spraying or harvesting services by a processor or distributor of farm products. It does 
10.28 	not include the production of timber or forest products, the production of poultry or 
10.29 	poultry products, or the feeding and caring for livestock that are delivered to a corporation 
10.30 	for slaughter or processing for up to 20 days before slaughter or processing.
10.31 	(b) "Family farm" means an unincorporated farming unit owned by one or more 
10.32 	persons residing on the farm or actively engaging in farming.
10.33 	(c) "Family farm corporation" means a corporation founded for the purpose of 
10.34 	farming and the ownership of agricultural land in which the majority of the stock is held 
11.1 	by and the majority of the stockholders are persons, the spouses of persons, or current 
11.2 	beneficiaries of one or more family farm trusts in which the trustee holds stock in a family 
11.3 	farm corporation, related to each other within the third degree of kindred according to 
11.4 	the rules of the civil law, and at least one of the related persons is residing on or actively 
11.5 	operating the farm, and none of whose stockholders are corporations; provided that a 
11.6 	family farm corporation shall not cease to qualify as such hereunder by reason of any:
11.7 	(1) transfer of shares of stock to a person or the spouse of a person related within 
11.8 	the third degree of kindred according to the rules of civil law to the person making the 
11.9 	transfer, or to a family farm trust of which the shareholder, spouse, or related person is 
11.10 	a current beneficiary; or
11.11 	(2) distribution from a family farm trust of shares of stock to a beneficiary related 
11.12 	within the third degree of kindred according to the rules of civil law to a majority of the 
11.13 	current beneficiaries of the trust, or to a family farm trust of which the shareholder, spouse, 
11.14 	or related person is a current beneficiary.
11.15 	For the purposes of this section, a transfer may be made with or without 
11.16 	consideration, either directly or indirectly, during life or at death, whether or not in trust, 
11.17 	of the shares in the family farm corporation, and stock owned by a family farm trust are 
11.18 	considered to be owned in equal shares by the current beneficiaries.
11.19 	(d) "Family farm trust" means:
11.20 	(1) a trust in which:
11.21 	(i) a majority of the current beneficiaries are persons or spouses of persons who are 
11.22 	related to each other within the third degree of kindred according to the rules of civil law;
11.23 	(ii) all of the current beneficiaries are natural persons or nonprofit corporations 
11.24 	or trusts described in the Internal Revenue Code, section 170(c), as amended, and the 
11.25 	regulations under that section; and
11.26 	(iii) one of the family member current beneficiaries is residing on or actively 
11.27 	operating the farm; or the trust leases the agricultural land to a family farm unit, a 
11.28 	family farm corporation, an authorized farm corporation, an authorized livestock farm 
11.29 	corporation, a family farm limited liability company, a family farm trust, an authorized 
11.30 	farm limited liability company, a family farm partnership, or an authorized farm 
11.31 	partnership; or
11.32 	(2) a charitable remainder trust as defined in the Internal Revenue Code, section 664, 
11.33 	as amended, and the regulations under that section, and a charitable lead trust as set forth 
11.34 	in the Internal Revenue Code, section 170(f), and the regulations under that section.
11.35 	(e) "Authorized farm corporation" means a corporation meeting the following 
11.36 	standards:
12.1 	(1) it has no more than five shareholders, provided that for the purposes of this 
12.2 	section, a husband and wife are considered one shareholder;
12.3 	(2) all its shareholders, other than any estate, are natural persons or a family farm 
12.4 	trust;
12.5 	(3) it does not have more than one class of shares;
12.6 	(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed 
12.7 	20 percent of its gross receipts;
12.8 	(5) shareholders holding 51 percent or more of the interest in the corporation reside 
12.9 	on the farm or are actively engaging in farming;
12.10 	(6) it does not, directly or indirectly, own or otherwise have an interest in any title to 
12.11 	more than 1,500 acres of agricultural land; and
12.12 	(7) none of its shareholders are shareholders in other authorized farm corporations 
12.13 	that directly or indirectly in combination with the corporation own more than 1,500 acres 
12.14 	of agricultural land.
12.15 	(f) "Authorized livestock farm corporation" means a corporation formed for the 
12.16 	production of livestock and meeting the following standards:
12.17 	(1) it is engaged in the production of livestock other than dairy cattle;
12.18 	(2) all its shareholders, other than any estate, are natural persons, family farm trusts, 
12.19 	or family farm corporations;
12.20 	(3) it does not have more than one class of shares;
12.21 	(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed 
12.22 	20 percent of its gross receipts;
12.23 	(5) shareholders holding 75 percent or more of the control, financial, and capital 
12.24 	investment in the corporation are farmers, and at least 51 percent of the required 
12.25 	percentage of farmers are actively engaged in livestock production;
12.26 	(6) it does not, directly or indirectly, own or otherwise have an interest in any title to 
12.27 	more than 1,500 acres of agricultural land; and
12.28 	(7) none of its shareholders are shareholders in other authorized farm corporations 
12.29 	that directly or indirectly in combination with the corporation own more than 1,500 acres 
12.30 	of agricultural land.
12.31 	(g) "Agricultural land" means real estate used for farming or capable of being used 
12.32 	for farming in this state.
12.33 	(h) "Pension or investment fund" means a pension or employee welfare benefit fund, 
12.34 	however organized, a mutual fund, a life insurance company separate account, a common 
12.35 	trust of a bank or other trustee established for the investment and reinvestment of money 
13.1 	contributed to it, a real estate investment trust, or an investment company as defined in 
13.2 	United States Code, title 15, section 80a-3.
13.3 	(i) "Farm homestead" means a house including adjoining buildings that has been 
13.4 	used as part of a farming operation or is part of the agricultural land used for a farming 
13.5 	operation.
13.6 	(j) "Family farm partnership" means a limited partnership formed for the purpose of 
13.7 	farming and the ownership of agricultural land in which the majority of the interests in 
13.8 	the partnership is held by and the majority of the partners are natural persons or current 
13.9 	beneficiaries of one or more family farm trusts in which the trustee holds an interest in a 
13.10 	family farm partnership related to each other within the third degree of kindred according 
13.11 	to the rules of the civil law, and at least one of the related persons is residing on the farm, 
13.12 	actively operating the farm, or the agricultural land was owned by one or more of the 
13.13 	related persons for a period of five years before its transfer to the limited partnership, and 
13.14 	none of the partners is a corporation. A family farm partnership does not cease to qualify 
13.15 	as a family farm partnership because of a:
13.16 	(1) transfer of a partnership interest to a person or spouse of a person related within 
13.17 	the third degree of kindred according to the rules of civil law to the person making the 
13.18 	transfer or to a family farm trust of which the partner, spouse, or related person is a current 
13.19 	beneficiary; or
13.20 	(2) distribution from a family farm trust of a partnership interest to a beneficiary 
13.21 	related within the third degree of kindred according to the rules of civil law to a majority 
13.22 	of the current beneficiaries of the trust, or to a family farm trust of which the partner, 
13.23 	spouse, or related person is a current beneficiary.
13.24 	For the purposes of this section, a transfer may be made with or without 
13.25 	consideration, either directly or indirectly, during life or at death, whether or not in trust, 
13.26 	of a partnership interest in the family farm partnership, and interest owned by a family 
13.27 	farm trust is considered to be owned in equal shares by the current beneficiaries.
13.28 	(k) "Authorized farm partnership" means a limited partnership meeting the following 
13.29 	standards:
13.30 	(1) it has been issued a certificate from the secretary of state or is registered with the 
13.31 	county recorder and farming and ownership of agricultural land is stated as a purpose or 
13.32 	character of the business;
13.33 	(2) it has no more than five partners;
13.34 	(3) all its partners, other than any estate, are natural persons or family farm trusts;
13.35 	(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed 
13.36 	20 percent of its gross receipts;
14.1 	(5) its general partners hold at least 51 percent of the interest in the land assets of the 
14.2 	partnership and reside on the farm or are actively engaging in farming not more than 1,500 
14.3 	acres as a general partner in an authorized limited partnership;
14.4 	(6) its limited partners do not participate in the business of the limited partnership 
14.5 	including operating, managing, or directing management of farming operations;
14.6 	(7) it does not, directly or indirectly, own or otherwise have an interest in any title to 
14.7 	more than 1,500 acres of agricultural land; and
14.8 	(8) none of its limited partners are limited partners in other authorized farm 
14.9 	partnerships that directly or indirectly in combination with the partnership own more than 
14.10 	1,500 acres of agricultural land.
14.11 	(l) "Family farm limited liability company" means a limited liability company 
14.12 	founded for the purpose of farming and the ownership of agricultural land in which the 
14.13 	majority of the membership interests is held by and the majority of the members are 
14.14 	natural persons, or current beneficiaries of one or more family farm trusts in which the 
14.15 	trustee holds an interest in a family farm limited liability company related to each other 
14.16 	within the third degree of kindred according to the rules of the civil law, and at least one of 
14.17 	the related persons is residing on the farm, actively operating the farm, or the agricultural 
14.18 	land was owned by one or more of the related persons for a period of five years before 
14.19 	its transfer to the limited liability company, and none of the members is a corporation or 
14.20 	a limited liability company. A family farm limited liability company does not cease to 
14.21 	qualify as a family farm limited liability company because of:
14.22 	(1) a transfer of a membership interest to a person or spouse of a person related 
14.23 	within the third degree of kindred according to the rules of civil law to the person making 
14.24 	the transfer or to a family farm trust of which the member, spouse, or related person is 
14.25 	a current beneficiary; or
14.26 	(2) distribution from a family farm trust of a membership interest to a beneficiary 
14.27 	related within the third degree of kindred according to the rules of civil law to a majority 
14.28 	of the current beneficiaries of the trust, or to a family farm trust of which the member, 
14.29 	spouse, or related person is a current beneficiary.
14.30 	For the purposes of this section, a transfer may be made with or without 
14.31 	consideration, either directly or indirectly, during life or at death, whether or not in trust, of 
14.32 	a membership interest in the family farm limited liability company, and interest owned by 
14.33 	a family farm trust is considered to be owned in equal shares by the current beneficiaries. 
14.34 	Except for a state or federally chartered financial institution acquiring an encumbrance 
14.35 	for the purpose of security or an interest under paragraph (x), a member of a family farm 
15.1 	limited liability company may not transfer a membership interest, including a financial 
15.2 	interest, to a person who is not otherwise eligible to be a member under this paragraph.
15.3 	(m) "Authorized farm limited liability company" means a limited liability company 
15.4 	meeting the following standards:
15.5 	(1) it has no more than five members;
15.6 	(2) all its members, other than any estate, are natural persons or family farm trusts;
15.7 	(3) it does not have more than one class of membership interests;
15.8 	(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed 
15.9 	20 percent of its gross receipts;
15.10 	(5) members holding 51 percent or more of both the governance rights and financial 
15.11 	rights in the limited liability company reside on the farm or are actively engaged in 
15.12 	farming;
15.13 	(6) it does not, directly or indirectly, own or otherwise have an interest in any title to 
15.14 	more than 1,500 acres of agricultural land; and
15.15 	(7) none of its members are members in other authorized farm limited liability 
15.16 	companies that directly or indirectly in combination with the authorized farm limited 
15.17 	liability company own more than 1,500 acres of agricultural land.
15.18 	Except for a state or federally chartered financial institution acquiring an 
15.19 	encumbrance for the purpose of security or an interest under paragraph (x), a member of 
15.20 	an authorized farm limited liability company may not transfer a membership interest, 
15.21 	including a financial interest, to a person who is not otherwise eligible to be a member 
15.22 	under this paragraph.
15.23 	(n) "Farmer" means a natural person who regularly participates in physical labor or 
15.24 	operations management in the person's farming operation and files "Schedule F" as part of 
15.25 	the person's annual Form 1040 filing with the United States Internal Revenue Service.
15.26 	(o) "Actively engaged in livestock production" means performing day-to-day 
15.27 	physical labor or day-to-day operations management that significantly contributes to 
15.28 	livestock production and the functioning of a livestock operation.
15.29 	(p) "Research or experimental farm" means a corporation, limited partnership, 
15.30 	pension, investment fund, or limited liability company that owns or operates agricultural 
15.31 	land for research or experimental purposes, provided that any commercial sales from the 
15.32 	operation are incidental to the research or experimental objectives of the corporation. A 
15.33 	corporation, limited partnership, limited liability company, or pension or investment fund 
15.34 	seeking initial approval by the commissioner to operate agricultural land for research or 
15.35 	experimental purposes must first submit to the commissioner a prospectus or proposal of 
16.1 	the intended method of operation containing information required by the commissioner 
16.2 	including a copy of any operational contract with individual participants.
16.3 	(q) "Breeding stock farm" means a corporation, limited partnership, or limited 
16.4 	liability company, that owns or operates agricultural land for the purpose of raising 
16.5 	breeding stock, including embryos, for resale to farmers or for the purpose of growing 
16.6 	seed, wild rice, nursery plants, or sod. An entity that is organized to raise livestock 
16.7 	other than dairy cattle under this paragraph that does not qualify as an authorized farm 
16.8 	corporation must:
16.9 	(1) sell all castrated animals to be fed out or finished to farming operations that are 
16.10 	neither directly nor indirectly owned by the business entity operating the breeding stock 
16.11 	operation; and
16.12 	(2) report its total production and sales annually to the commissioner.
16.13 	(r) "Aquatic farm" means a corporation, limited partnership, or limited liability 
16.14 	company, that owns or leases agricultural land as a necessary part of an aquatic farm 
16.15 	as defined in section 17.47, subdivision 3. 
16.16 	(s) "Religious farm" means a corporation formed primarily for religious purposes 
16.17 	whose sole income is derived from agriculture.
16.18 	(t) "Utility corporation" means a corporation regulated under Minnesota Statutes 
16.19 	1974, chapter 216B, that owns agricultural land for purposes described in that chapter, or 
16.20 	an electric generation or transmission cooperative that owns agricultural land for use in 
16.21 	its business if the land is not used for farming except under lease to a family farm unit, 
16.22 	a family farm corporation, a family farm trust, a family farm partnership, or a family 
16.23 	farm limited liability company.
16.24 	(u) "Development organization" means a corporation, limited partnership, limited 
16.25 	liability company, or pension or investment fund that has an interest in agricultural land 
16.26 	for which the corporation, limited partnership, limited liability company, or pension or 
16.27 	investment fund has documented plans to use and subsequently uses the land within 
16.28 	six years from the date of purchase for a specific nonfarming purpose, or if the land is 
16.29 	zoned nonagricultural, or if the land is located within an incorporated area. A corporation, 
16.30 	limited partnership, limited liability company, or pension or investment fund may hold 
16.31 	agricultural land in the amount necessary for its nonfarm business operation; provided, 
16.32 	however, that pending the development of agricultural land for nonfarm purposes, the land 
16.33 	may not be used for farming except under lease to a family farm unit, a family farm 
16.34 	corporation, a family farm trust, an authorized farm corporation, an authorized livestock 
16.35 	farm corporation, a family farm partnership, an authorized farm partnership, a family farm 
16.36 	limited liability company, or an authorized farm limited liability company, or except when 
17.1 	controlled through ownership, options, leaseholds, or other agreements by a corporation 
17.2 	that has entered into an agreement with the United States under the New Community Act 
17.3 	of 1968 (Title IV of the Housing and Urban Development Act of 1968, United States Code, 
17.4 	title 42, sections 3901 to 3914) as amended, or a subsidiary or assign of such a corporation.
17.5 	(v) "Exempt land" means agricultural land owned or leased by a corporation as of 
17.6 	May 20, 1973, agricultural land owned or leased by a pension or investment fund as of 
17.7 	May 12, 1981, agricultural land owned or leased by a limited partnership as of May 1, 
17.8 	1988, or agricultural land owned or leased by a trust as of the effective date of Laws 2000, 
17.9 	chapter 477, including the normal expansion of that ownership at a rate not to exceed 20 
17.10 	percent of the amount of land owned as of May 20, 1973, for a corporation; May 12, 1981, 
17.11 	for a pension or investment fund; May 1, 1988, for a limited partnership, or the effective 
17.12 	date of Laws 2000, chapter 477, for a trust, measured in acres, in any five-year period, 
17.13 	and including additional ownership reasonably necessary to meet the requirements of 
17.14 	pollution control rules. A corporation, limited partnership, or pension or investment fund 
17.15 	that is eligible to own or lease agricultural land under this section prior to May 1997, or a 
17.16 	corporation that is eligible to own or lease agricultural land as a benevolent trust under this 
17.17 	section prior to the effective date of Laws 2000, chapter 477, may continue to own or lease 
17.18 	agricultural land subject to the same conditions and limitations as previously allowed.
17.19 	(w) "Gifted land" means agricultural land acquired as a gift, either by grant or devise, 
17.20 	by an educational, religious, or charitable nonprofit corporation, limited partnership, 
17.21 	limited liability company, or pension or investment fund if all land so acquired is disposed 
17.22 	of within ten years after acquiring the title.
17.23 	(x) "Repossessed land" means agricultural land acquired by a corporation, limited 
17.24 	partnership, limited liability company, or pension or investment fund by process of law 
17.25 	in the collection of debts, or by any procedure for the enforcement of a lien or claim on 
17.26 	the land, whether created by mortgage or otherwise if all land so acquired is disposed of 
17.27 	within five years after acquiring the title. The five-year limitation is a covenant running 
17.28 	with the title to the land against any grantee, assignee, or successor of the pension or 
17.29 	investment fund, corporation, limited partnership, or limited liability company. The land 
17.30 	so acquired must not be used for farming during the five-year period, except under a 
17.31 	lease to a family farm unit, a family farm corporation, a family farm trust, an authorized 
17.32 	farm corporation, an authorized livestock farm corporation, a family farm partnership, an 
17.33 	authorized farm partnership, a family farm limited liability company, or an authorized 
17.34 	farm limited liability company. Notwithstanding the five-year divestiture requirement 
17.35 	under this paragraph, a financial institution may continue to own the agricultural land if the 
17.36 	agricultural land is leased to the immediately preceding former owner, but must dispose 
18.1 	of the agricultural land within ten years of acquiring the title. Livestock acquired by a 
18.2 	pension or investment fund, corporation, limited partnership, or limited liability company 
18.3 	in the collection of debts, or by a procedure for the enforcement of lien or claim on the 
18.4 	livestock whether created by security agreement or otherwise after August 1, 1994, must 
18.5 	be sold or disposed of within one full production cycle for the type of livestock acquired 
18.6 	or 18 months after the livestock is acquired, whichever is earlier.
18.7 	(y) "Commissioner" means the commissioner of agriculture.
18.8 	(z) "Nonprofit corporation" means a nonprofit corporation organized under state 
18.9 	nonprofit corporation or trust law or qualified for tax-exempt status under federal tax law 
18.10 	that: (1)  uses the land for a specific nonfarming purpose or; (2) leases the agricultural 
18.11 	land to a family farm unit, a family farm corporation, an authorized farm corporation, an 
18.12 	authorized livestock farm corporation, a family farm limited liability company, a family 
18.13 	farm trust, an authorized farm limited liability company, a family farm partnership, or an 
18.14 	authorized farm partnership; or (3) actively farms less than 160 acres that were acquired 
18.15 	by the nonprofit corporation prior to January 1, 2010, or actively farms less than 40 acres 
18.16 	that were acquired by the nonprofit corporation after January 1, 2010, and the nonprofit 
18.17 	corporation uses all profits from the agricultural land for educational purposes.
18.18 	(aa) "Current beneficiary" means a person who at any time during a year is entitled 
18.19 	to, or at the discretion of any person may, receive a distribution from the income or 
18.20 	principal of the trust. It does not include a distributee trust, other than a trust described in 
18.21 	section 170(c) of the Internal Revenue Code, as amended, but does include the current 
18.22 	beneficiaries of the distributee trust. It does not include a person in whose favor a power 
18.23 	of appointment could be exercised until the holder of the power of appointment actually 
18.24 	exercises the power of appointment in that person's favor. It does not include a person who 
18.25 	is entitled to receive a distribution only after a specified time or upon the occurrence of a 
18.26 	specified event until the time or occurrence of the event. For the purposes of this section, a 
18.27 	distributee trust is a current beneficiary of a family farm trust.
18.28 	(bb) "De minimis" means that any corporation, pension or investment fund, limited 
18.29 	liability company, or limited partnership that directly or indirectly owns, acquires, or 
18.30 	otherwise obtains any interest in 40 acres or less of agricultural land and annually receives 
18.31 	less than $150 per acre in gross revenue from rental or agricultural production.

18.32 	Sec. 19. Minnesota Statutes 2008, section 514.965, subdivision 2, is amended to read:
18.33 		Subd. 2.Agricultural lien. "Agricultural lien" means an agricultural lien as defined 
18.34 	in section 336.9-102(a)(5) and includes a veterinarian's lien, breeder's lien, livestock 
19.1 	production input lien, temporary livestock production input lien, and feeder's lien under 
19.2 	this section and section 514.966.  

19.3 	Sec. 20. Minnesota Statutes 2008, section 514.966, is amended by adding a subdivision 
19.4 	to read:
19.5 		Subd. 3a.Temporary livestock production input lien; debtor in mediation. (a) 
19.6 	A supplier furnishing livestock production inputs in the ordinary course of business to 
19.7 	a debtor who has filed a mediation request under chapter 583 has a temporary livestock 
19.8 	production input lien for the unpaid retail cost of the livestock production input. A 
19.9 	temporary perfected livestock production input lien that attaches to livestock may not 
19.10 	exceed the amount, if any, that the sales price of the livestock for which the inputs were 
19.11 	received exceeds the greater of the fair market value of the livestock at the time the lien 
19.12 	attaches or the acquisition price of the livestock. A temporary livestock production input 
19.13 	lien becomes effective when the agricultural production inputs are furnished by the 
19.14 	supplier to the purchaser.
19.15 	(b) A temporary livestock production input lien under this subdivision applies to 
19.16 	livestock production inputs provided that meet the needs of the debtor's livestock during 
19.17 	the 45 days following a mediation request under chapter 583.
19.18 	(c) A person who supplies livestock production inputs under this subdivision shall 
19.19 	provide a lien-notification statement as required under subdivision 3, paragraphs (b) 
19.20 	and (c), but is not subject to subdivision 3, paragraphs (d) to (f). A perfected temporary 
19.21 	livestock production input lien corresponding to the lien-notification statement has priority 
19.22 	over any security interest of the lender in the same livestock or their proceeds for the 
19.23 	lesser of:
19.24 	(1) the amount stated in the lien-notification statement; or
19.25 	(2) the unpaid retail cost of the livestock production input identified in the 
19.26 	lien-notification statement, subject to any limitation in paragraph (a).

19.27 	Sec. 21. Minnesota Statutes 2008, section 514.966, subdivision 6, is amended to read:
19.28 		Subd. 6.Perfection. (a) An agricultural lien under this section is perfected if a 
19.29 	financing statement is filed pursuant to sections 336.9-501 to 336.9-530 and within the 
19.30 	time periods set forth in paragraphs (b) to (e).  
19.31 	(b) A veterinarian's lien must be perfected on or before 180 days after the last item 
19.32 	of the veterinary service is performed.
19.33 	(c) A breeder's lien must be perfected by six months after the last date that breeding 
19.34 	services are provided the obligor.
20.1 	(d) Except as provided in paragraph (f), a livestock production input lien must be 
20.2 	perfected by six months after the last date that livestock production inputs are furnished 
20.3 	the obligor.
20.4 	(e) A feeder's lien must be perfected on or before 60 days after the last date that 
20.5 	feeding services are furnished the obligor.
20.6 	(f) A temporary livestock production input lien, under subdivision 3a, must be 
20.7 	perfected on or before 60 days after the last date that livestock production inputs are 
20.8 	furnished the obligor.

20.9 	Sec. 22. Laws 2008, chapter 296, article 1, section 25, the effective date, is amended to 
20.10 	read:

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

20.12 	Sec. 23. FERTILIZER RESEARCH GRANTS; EXTENSION OF 
20.13 	APPROPRIATION AVAILABILITY.
 20.14 	Notwithstanding Minnesota Statutes, section 16A.28:
20.15 	(1) the appropriation encumbered on or before June 30, 2009, for fertilizer research 
20.16 	grants in Laws 2007, chapter 45, article 1, section 3, subdivision 5, is available until 
20.17 	June 30, 2011;
20.18 	(2) the fiscal year 2010 appropriation encumbered on or before June 30, 2011, for 
20.19 	fertilizer research grants in Laws 2009, chapter 94, article 1, section 3, subdivision 5, is 
20.20 	available until June 30, 2013; and
20.21 	(3) the fiscal year 2011 appropriation encumbered on or before June 30, 2012, for 
20.22 	fertilizer research grants in Laws 2009, chapter 94, article 1, section 3, subdivision 5, 
20.23 	is available until June 30, 2014.

20.24 	Sec. 24. DAIRY RESEARCH AND EDUCATION FACILITY.
 20.25 	The commissioner shall work with milk producers and other industry stakeholders 
20.26 	along with representatives of the University of Minnesota and Minnesota State Colleges 
20.27 	and Universities whose work relates to the dairy industry, to consider the elements of a 
20.28 	dairy research and education facility that would represent a partnership between higher 
20.29 	education institutions and the dairy industry. The commissioner shall provide a report on 
20.30 	facility and financing options to the house of representatives and senate agriculture budget 
20.31 	chairs and ranking minority members by February 1, 2011.

20.32 	Sec. 25. TERMINAL CAPACITY STUDY; APPROPRIATION.
 21.1 	$50,000 in fiscal year 2011 is appropriated from the fertilizer inspection account 
21.2 	in the agricultural fund to the commissioner of agriculture to determine, with assistance 
21.3 	from the Office of Energy Security, the total propane and anhydrous ammonia terminal 
21.4 	capacity located in the state and within 100 miles of the state's borders. The commissioner 
21.5 	shall also use projected grain yields and other relevant factors to estimate total agricultural 
21.6 	demand for propane and anhydrous ammonia in this state in the year 2020 and shall 
21.7 	develop a detailed plan for fully and economically satisfying this anticipated demand. No 
21.8 	later than February 1, 2011, the commissioner shall present the report to the legislative 
21.9 	committees with jurisdiction over agricultural finance.

21.10 	Sec. 26.  REPEALER.
 21.11 	Minnesota Statutes 2008, sections 17.231; and 343.26, are repealed.

21.12 	ARTICLE 2
21.13 	VETERANS

21.14 	Section 1. Minnesota Statutes 2008, section 197.60, subdivision 1, is amended to read:
21.15 		Subdivision 1.Appointment; administrative support. The county board of any 
21.16 	county except Clay County, or the county boards of any two or more counties acting 
21.17 	pursuant to the provisions of section 197.602, shall appoint a veterans service officer 
21.18 	and shall provide necessary clerical help, office space, equipment, and supplies for the 
21.19 	officer, together with reimbursement for mileage and other traveling expenses necessarily 
21.20 	incurred in the performance of duties; and may appoint one or more assistant veterans 
21.21 	service officers who shall have the qualifications prescribed in are qualified under section 
21.22 	197.601. The county board of Clay County may appoint a veterans service officer and 
21.23 	assistant veterans service officers as provided in this subdivision.The county board or 
21.24 	boards shall provide necessary clerical help, office space, equipment, and supplies for the 
21.25 	officer, and reimbursement for mileage and other traveling expenses necessarily incurred 
21.26 	in the performance of duties. Subject to the direction and control of the veterans service 
21.27 	officer, the assistant veterans service officer may exercise all the powers, and shall perform 
21.28 	the duties, of the veterans service officer, and shall be is subject to all the provisions of 
21.29 	sections 197.60 to 197.606 relating to a veterans service officer. Every county officer and 
21.30 	agency shall cooperate with the veterans service officer and shall provide the officer with 
21.31 	information necessary in connection with the performance of duties.  

22.1 	Sec. 2. Minnesota Statutes 2008, section 197.601, is amended to read:
22.2 	197.601 QUALIFICATIONS OF VETERANS SERVICE OFFICERS.
22.3 	No person shall be appointed a veterans service officer or an assistant county 
22.4 	veterans service officer or the equivalent under sections 197.60 to 197.606without the 
22.5 	following qualifications unless the person is:  
22.6 	(1) residence in a resident of the state of Minnesota;
22.7 	(2) citizenship in a citizen of the United States; and
22.8 	(3) a veteran, as defined in section 197.447;.
22.9 	(4) education and training for the duties of veterans service officer;
22.10 	(5) knowledge of the law and the regulations and rulings of the United States 
22.11 	Veterans Administration applicable to cases before it and the administration thereof.
22.12 	In addition, a person accepting appointment to the position of county veterans 
22.13 	service officer or assistant county veterans service officer or other equivalent assistant 
22.14 	position must agree to receive, within six months of the appointment, training and 
22.15 	education for the duties of the position, including development of an effective working 
22.16 	knowledge of relevant laws, rules, and regulations pertaining to the United States 
22.17 	Department of Veterans Affairs, as applicable to veterans cases before the department and 
22.18 	the administration of those cases.

22.19 	Sec. 3. Minnesota Statutes 2008, section 197.605, is amended to read:
22.20 	197.605 SUPERVISION DEPARTMENT AS A RESOURCE TO COUNTIES.
22.21 		Subdivision 1.Methods of operation Resources available. Every veterans service 
22.22 	officer appointed under sections 197.60 to 197.606 shall be under the general supervision 
22.23 	of the commissioner of veterans affairs as to methods of operation.The commissioner of 
22.24 	veterans affairs shall make resources available within the Department of Veterans Affairs 
22.25 	to every county that operates a county veterans service office, to assist the county with 
22.26 	maintaining efficient and effective services to veterans. To receive available resources 
22.27 	from the department, a county must formally request them from the commissioner and 
22.28 	invite the commissioner or the commissioner's designee or designees into the county 
22.29 	as necessary to provide those resources. The commissioner shall consult with the 
22.30 	Association of Minnesota Counties and the Minnesota Association of County Veterans 
22.31 	Service Officers in developing a list of resources available to counties in support of their 
22.32 	county veterans service offices.
22.33 		Subd. 2.Use of agencies to present claims. Every veterans service officer and 
22.34 	assistant veterans service officer or the equivalent appointed under sections 197.60 to 
22.35 	197.606 shall use the Minnesota Department of Veterans Affairs or any organization 
23.1 	recognized by the United States Department of Veterans Administration Affairs, as may 
23.2 	be designated by the veteran by power of attorney, in the presentation of claims to the 
23.3 	United States Department of Veterans Administration Affairs for the benefits referred to 
23.4 	in section 197.603.  
23.5 		Subd. 3.Rules. The commissioner of veterans affairs shall have authority to 
23.6 	prescribe such rules as are necessary for compliance with this section and the efficient 
23.7 	uniform administration of sections 197.60 to 197.606. Such rules shall not apply to the 
23.8 	appointment, tenure, compensation, or working conditions of a veterans service officer 
23.9 	appointed under sections 197.60 to 197.606.  
23.10 		Subd. 4.Certification. The commissioner of veterans affairs shall establish a 
23.11 	certification process for veterans service officers. In doing so, the commissioner shall 
23.12 	consult with the Minnesota Association of County Veterans Service Officers.

23.13 	Sec. 4. Minnesota Statutes 2008, section 197.606, is amended to read:
23.14 	197.606 CLASSED AS COUNTY EMPLOYEES.
23.15 	Veterans service officers and assistant veterans service officers appointed under 
23.16 	sections 197.60 to 197.606 are employees of the counties by which they are employed, and 
23.17 	are under the exclusive jurisdiction and control of such those counties and the Department 
23.18 	of Veterans Affairs as herein provided.  

23.19 	Sec. 5. Minnesota Statutes 2008, section 197.609, subdivision 1, is amended to read:
23.20 		Subdivision 1.Establishment and administration. An education program for 
23.21 	county veterans service officers is established to be administered by the commissioner of 
23.22 	veterans affairs, with assistance and advice from the Minnesota Association of County 
23.23 	Veterans Service Officers.

23.24 	Sec. 6. Minnesota Statutes 2008, section 197.609, subdivision 2, is amended to read:
23.25 		Subd. 2.Eligibility. To be eligible for the program in this section, a person must 
23.26 	currently be employed as a county veterans service officer or assistant county veterans 
23.27 	service officer, as authorized by sections 197.60 to 197.606, and be certified to serve in 
23.28 	that position by the commissioner of veterans affairs or be serving a probationary period 
23.29 	as authorized by section 197.60, subdivision 2.  

23.30 	Sec. 7. Minnesota Statutes 2008, section 197.75, subdivision 1, is amended to read:
23.31 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
23.32 	section.
24.1 	(b) "Commissioner" means the commissioner of veterans affairs.
24.2 	(c) "Deceased veteran" means a veteran who was a Minnesota resident within six 
24.3 	months of the time of the person's entry intothe United States armed forcesand who has 
24.4 	died as a result of thatthe person's military service, as determined by the United States 
24.5 	Veterans Administration, and who was a resident of this state: (1) within six months of 
24.6 	entering the United States armed forces, or (2) for the six months preceding the veteran's 
24.7 	date of death. 
24.8 	(d) "Eligible child" means a person who:
24.9 	(1) is the natural or adopted son or daughterchild or stepchild of a deceased veteran; 
24.10 	and
24.11 	(2) is a student making satisfactory academic progress at an eligible institution 
24.12 	of higher education.
24.13 	(e) "Eligible institution" means a postsecondary educational institution located in 
24.14 	this state that either (1) is operated by this state, or (2) is operated publicly or privately 
24.15 	and, as determined by the office, maintains academic standards substantially equivalent 
24.16 	to those of comparable institutions operated in this state.
24.17 	(f) "Eligible spouse" means the surviving spouse of a deceased veteran.
24.18 	(g) "Eligible veteran" means a veteran who:
24.19 	(1) is a student making satisfactory academic progress at an eligible institution 
24.20 	of higher education;
24.21 	(2) had Minnesota as the person's state of residence at the time of the person's 
24.22 	enlistment or any reenlistment into the United States armed forces, as shown by the 
24.23 	person's federal form DD-214 or other official documentation to the satisfaction of the 
24.24 	commissioner;
24.25 	(3) except for benefits under this section, has no remaining military or veteran-related 
24.26 	educational assistance benefits for which the person may have been entitled; and
24.27 	(4) while using the educational assistance authorized in this section, remains a 
24.28 	resident student as defined in section 136A.101, subdivision 8.
24.29 	(h) "Satisfactory academic progress" has the meaning given in section 136A.101, 
24.30 	subdivision 10.
24.31 	(i) "Student" has the meaning given in section 136A.101, subdivision 7.
24.32 	(j) "Veteran" has the meaning given in section 197.447.

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

24.35 	Sec. 8. NONCOMPLIANCE.
 25.1 	A county that on July 1, 2010, is noncompliant with regard to the qualifications of 
25.2 	an assistant county veterans service officer or the equivalent, under Minnesota Statutes, 
25.3 	section 197.601, must comply with the requirements of that section no later than June 30, 
25.4 	2013, and must remain in compliance after that date.

25.5 	Sec. 9.  REPEALER.
 25.6 	(a) Minnesota Statutes 2008, section 168.1251, is repealed.
25.7 	(b) Laws 2009, chapter 94, article 3, section 23, is repealed.

25.8 	EFFECTIVE DATE. Paragraph (b) is effective the day following final enactment.

25.9 	Sec. 10. EFFECTIVE DATE.
 25.10 	Sections 1 to 6 and 8 are effective July 1, 2010.