1.1 	A bill for an act
1.2 	relating to state government; modifying the amount of pay for commissioned 
1.3 	officers and enlisted members engaged in state active service; establishing standards 
1.4 	for use of competitive grants issued by the Department of Veterans Affairs; 
1.5 	modifying eligibility for burial in state veterans cemeteries; requiring a report;
1.6 	amending Minnesota Statutes 2024, section 197.231; Minnesota Statutes 2025 
1.7 	Supplement, sections 192.49, subdivision 1; 197.236, subdivisions 8, 9; proposing 
1.8 	coding for new law in Minnesota Statutes, chapter 196; repealing Minnesota 
1.9 	Statutes 2025 Supplement, section 192.49, subdivision 2.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	Section 1. Minnesota Statutes 2025 Supplement, section 192.49, subdivision 1, is amended 
1.12 	to read:
1.13 		Subdivision 1.Officers and enlisted members. Every commissioned officer and enlisted 
1.14 	member of the military forces shall must receive from the state, while engaged in state active 
1.15 	service as defined in section 190.05, subdivision 5a, pay and allowances at the rate now or 
1.16 	hereafter paid or allowed by law to officers or enlisted members of the same grade and 
1.17 	length of service in the armed forces of the United States, but basic pay must not be less 
1.18 	than $130 a day basic pay of an E-5 pay grade according to the military basic pay tables 
1.19 	maintained by the federal Defense Finance and Accounting Service.

1.20 	Sec. 2. [196.055] REQUIREMENTS FOR LEGISLATIVELY DIRECTED 
1.21 	COMPETITIVE AND DIRECT GRANTS.
1.22 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
1.23 	the meanings given.
2.1 	(b) "Active service member" means a person currently serving in the uniformed services 
2.2 	of the United States:
2.3 	(1) on active duty who is a resident of the state or stationed in the state; or
2.4 	(2) in a reserve component who is a resident of the state.
2.5 	(c) "Commissioner" means the commissioner of veterans affairs.
2.6 	(d) "Dependent child" means a child under the age of 22 who is a biological or adopted 
2.7 	child of a veteran.
2.8 	(e) "Immediate family member" means a spouse or dependent child of a veteran.
2.9 	(f) "Veteran" means a person who is a resident of Minnesota and who served in the 
2.10 	armed forces of the United States of America.
2.11 		Subd. 2.Grantee eligibility. (a) To be eligible to receive a legislatively directed 
2.12 	competitive or direct grant administered by the commissioner, the grantee must:
2.13 	(1) be a Minnesota-based nonprofit organization that has been operating for at least five 
2.14 	years;
2.15 	(2) be in good standing with the Office of the Attorney General; and
2.16 	(3) have a current federal tax form 990 on file with the federal Internal Revenue Service.
2.17 	(b) Grants made by the commissioner pursuant to sections 190.19, subdivision 2a, 
2.18 	paragraph (a), clauses (5) and (6), 197.608, and 197.61 are exempt from the requirements 
2.19 	of this section.
2.20 		Subd. 3.Limitations on use of grant money. (a) A grantee may only use grant money 
2.21 	subject to this section to provide services to:
2.22 	(1) Minnesota veterans;
2.23 	(2) active service members;
2.24 	(3) immediate family members of a Minnesota veteran or active service member; and
2.25 	(4) immediate family members of a deceased Minnesota veteran who died in the line of 
2.26 	duty.
2.27 	(b) When there are insufficient resources to serve all eligible applicants, a grantee must 
2.28 	prioritize serving veterans with a service-connected disability.
2.29 		Subd. 4.Grant application scoring system. The commissioner must develop a grant 
2.30 	application scoring system that evaluates grant applications based upon an applicant's 
3.1 	demonstrated history of serving veterans. The scoring system must include measurable 
3.2 	outcomes for veterans previously served by the applicant.
3.3 		Subd. 5.Grant amounts. The commissioner shall determine the amount of each 
3.4 	legislatively directed competitive grant awarded based on the results of the scoring system 
3.5 	developed pursuant to subdivision 4. The commissioner may not use a grantee's request for 
3.6 	a designated grant amount as a factor to determine the amount of the grant awarded to the 
3.7 	grantee.
3.8 		Subd. 6.Suspension of grant money. The commissioner may withhold amounts awarded 
3.9 	to a grantee if the commissioner determines that the grantee has committed fraud, is under 
3.10 	criminal investigation, has conducted itself in a manner that brings the state of Minnesota 
3.11 	or the Department of Veterans Affairs into disrepute, or is incapable of delivering the services 
3.12 	required under the grant agreement.
3.13 		Subd. 7.Reports. (a) Beginning in 2027, by February 15 of each year a grantee must 
3.14 	submit a report to the commissioner that includes the following information:
3.15 	(1) a summary of the purpose of the grant;
3.16 	(2) the grant amount provided to the grantee;
3.17 	(3) the amount of previous grants issued by the commissioner to the grantee;
3.18 	(4) the amount of other state and federal grants received by the grantee in the most recent 
3.19 	fiscal year;
3.20 	(5) the number of veterans, active service members, and immediate family members 
3.21 	served by the grantee;
3.22 	(6) the number of veterans, active service members, and immediate family members 
3.23 	who successfully completed the grantee's programming and the criteria used to determine 
3.24 	successful completion of the program; and
3.25 	(7) the grantee's charitable giving ratio.
3.26 	(b) The commissioner may require a grantee to report information in addition to the 
3.27 	required information under paragraph (a) if specified in the grantee's grant agreement with 
3.28 	the state.
3.29 	(c) Beginning in 2027, by March 1 of each year the commissioner must submit a report 
3.30 	on grantees that received legislatively directed competitive or direct grants from the agency 
3.31 	in the preceding year to the chairs and ranking minority members of the legislative 
3.32 	committees with jurisdiction over veterans affairs policy and finance. The report must 
4.1 	summarize the information and aggregate the data provided by grantees under paragraph 
4.2 	(a).
4.3 		Subd. 8.Administrative costs. The commissioner may retain up to five percent of the 
4.4 	amount appropriated for legislatively directed competitive and direct grants to fund 
4.5 	administrative and compliance monitoring costs related to the grants.
4.6 		Subd. 9.Interaction with other law. Notwithstanding any law to the contrary, the 
4.7 	requirements for grants established in this section are in addition to the applicable grants 
4.8 	management requirements imposed under sections 16B.97 to 16B.991.

4.9 	Sec. 3. Minnesota Statutes 2024, section 197.231, is amended to read:
4.10 	197.231 HONOR GUARDS.
4.11 	The commissioner of veterans affairs shall pay, within available funds and upon request 
4.12 	by a local unit of a congressionally chartered veterans organization or its auxiliary, up to 
4.13 	$50 to the local unit for each time that local unit provides an honor guard detail at the funeral 
4.14 	of a:
4.15 	(1) deceased veteran;
4.16 	(2) veteran of the secret war in Laos, as defined in section 197.448, subdivision 1; or
4.17 	(3) member of a reserve component of the armed forces, and any member of the Army 
4.18 	National Guard or the Air National Guard, as defined in section 197.236, subdivision 8, 
4.19 	paragraph (a), clause (2).
4.20 	If the local unit provides a student to play "Taps," the local unit may pay some or all of the 
4.21 	$50 to the student.

4.22 	Sec. 4. Minnesota Statutes 2025 Supplement, section 197.236, subdivision 8, is amended 
4.23 	to read:
4.24 		Subd. 8.Eligibility. (a) Cemeteries must be operated solely for the burial of the following 
4.25 	persons:
4.26 	(1) service members who die on active duty, eligible veterans, and their spouses and 
4.27 	dependent children, other persons as defined in United States Code, title 38, section 2402, 
4.28 	paragraph (a), subparagraphs 1 to 5 4, 7, and 7. 10;
4.29 	(2) members of a reserve component of the armed forces, and any member of the Army 
4.30 	National Guard or the Air National Guard, when:
5.1 	(i) the member completed at least one full term of service and the member received an 
5.2 	honorable discharge; or
5.3 	(ii) the member's death occurs while a member in good standing with the member's 
5.4 	assigned component and was not due to the member's willful misconduct; and
5.5 	(3) spouses, surviving spouses, minor children, or unmarried adult children of a person 
5.6 	as defined in United States Code, title 38, section 2402, paragraph (a), subparagraphs 1 to 
5.7 	4 and 7, or clause (2) of this subdivision. For purposes of this section:
5.8 	(i) a surviving spouse includes a surviving spouse who had a subsequent remarriage;
5.9 	(ii) a minor child means an unmarried child under 21 years of age, or under 23 years of 
5.10 	age if pursuing a full-time course of instruction at an approved educational institution; and
5.11 	(iii) an unmarried adult child means a child who became permanently physically or 
5.12 	mentally disabled and incapable of self-support before reaching 21 years of age, or before 
5.13 	reaching 23 years of age if pursuing a full-time course of instruction at an approved 
5.14 	educational institution.
5.15 	(b) An honorable discharge for purposes of this section does not include a general (under 
5.16 	honorable conditions) characterization of service.
5.17 	(c) Willful misconduct for purposes of this section means an act involving conscious 
5.18 	wrongdoing or known prohibited action as described in United States Code, title 38, section 
5.19 	3.1, paragraph (n).
5.20 	(d) Applicants with convictions under United States Code, title 18, section 704, are not 
5.21 	eligible for burial in state veterans cemeteries. By January 1, 2027, the commissioner shall 
5.22 	establish a process to verify that applicants for burial have not been convicted of stolen 
5.23 	valor.

5.24 	Sec. 5. Minnesota Statutes 2025 Supplement, section 197.236, subdivision 9, is amended 
5.25 	to read:
5.26 		Subd. 9.Burial fees. (a) The commissioner of veterans affairs shall establish a fee 
5.27 	schedule, which may be adjusted from time to time, for the interment of eligible spouses 
5.28 	and dependent children qualified persons under subdivision 8, paragraph (a), clauses (2) 
5.29 	and (3). The fees shall cover as nearly as practicable the actual costs of interment, excluding 
5.30 	the value of the plot.
6.1 	(b) Upon application, the commissioner may waive or reduce the burial fee for an indigent 
6.2 	eligible person. The commissioner shall maintain a policy, eligibility standards, and 
6.3 	application form for requests to waive or reduce the burial fee to indigent eligible applicants.
6.4 	(c) No plot or interment fees may be charged for the burial of service members who die 
6.5 	on active duty or eligible veterans, as defined in United States Code, title 38, section 2402, 
6.6 	paragraph (a), subparagraphs 1 to 4 and 7.

6.7 	Sec. 6. REPEALER.
 6.8 	Minnesota Statutes 2025 Supplement, section 192.49, subdivision 2, is repealed.

APPENDIX 

Repealed Minnesota Statutes: S4807-1 

192.49 PAY AND ALLOWANCES OF OFFICERS AND ORGANIZATIONS.Subd. 2.Enlisted persons. 
When called into state active service by the governor, other than for encampment or maneuvers, including the time necessarily consumed in travel, each enlisted person of the military forces shall be paid by the state the pay and the allowances, when not furnished in kind, provided by law for enlisted persons of similar grade, rating, and length of service in the armed forces of the United States, or $130 a day, whichever is more.