HF 2227

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to appropriations; appropriating money for agriculture and veterans
affairs; modifying disposition of certain revenue and funds; modifying certain
grant and loan requirements; modifying use of Minnesota grown label;
modifying and creating certain funds and accounts; eliminating the aquatic pest
control license; modifying permit and safeguard requirements; modifying and
establishing certain fees and surcharges; creating a food safety and defense task
force; requiring certain studies and reports; providing for NextGen energy;
changing certain provisions related to veterans; amending Minnesota Statutes
2006, sections 3.737, subdivision 1; 3.7371, subdivision 3; 17.03, subdivision
3; 17.101, subdivision 2; 17.102, subdivisions 1, 3, 4, by adding subdivisions;
17.117, subdivisions 1, 4, 5a, 5b, 11; 17.983, subdivision 1; 17B.03, by
adding a subdivision; 18B.065, subdivisions 1, 2a; 18B.26, subdivision 3;
18B.33, subdivision 1; 18B.34, subdivision 1; 18B.345; 18C.305, by adding a
subdivision; 18E.02, subdivision 5, by adding a subdivision; 18E.03, subdivision
4; 25.341, subdivision 1; 28A.04, subdivision 1; 28A.06; 28A.082, subdivision 1;
32.21, subdivision 4; 32.212; 32.394, subdivision 4; 32.415; 41B.03, subdivision
1; 41B.043, subdivisions 2, 3, 4; 41B.046, subdivision 4; 41B.047; 41B.055;
41B.06; 41C.05, subdivision 2; 116.0714; 156.001, by adding subdivisions;
156.12, subdivision 1; 197.75; 198.002, subdivision 2; 198.004, subdivision 1;
239.7911, subdivision 1; 343.10; 469.310, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapters 18C; 28A; 35; 38; 41A;
192; 197; 469; repealing Minnesota Statutes 2006, sections 17.109; 18B.315;
18C.425, subdivision 5; 32.213; 35.08; 35.09; 35.10; 35.11; 35.12; 41B.043,
subdivision 1a; 156.075; Laws 2006, chapter 258, section 14, subdivision
6; Minnesota Rules, parts 1705.0840; 1705.0850; 1705.0860; 1705.0870;
1705.0880; 1705.0890; 1705.0900; 1705.0910; 1705.0920; 1705.0930;
1705.0940; 1705.0950; 1705.0960; 1705.0970; 1705.0980; 1705.0990;
1705.1000; 1705.1010; 1705.1020; 1705.1030; 1705.1040; 1705.1050;
1705.1060; 1705.1070; 1705.1080; 1705.1086; 1705.1087; 1705.1088.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

AGRICULTURE AND VETERANS AFFAIRS

APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2008 new text end		new text begin 2009 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 66,507,000 new text end	new text begin $ new text end	new text begin 66,570,000 new text end	new text begin $ new text end	new text begin 133,077,000 new text end
new text begin State Government Special Revenue new text end		new text begin 338,000 new text end		new text begin 338,000 new text end		new text begin 676,000 new text end
new text begin Remediation new text end		new text begin 388,000 new text end		new text begin 388,000 new text end		new text begin 776,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 67,233,000 new text end	new text begin $ new text end	new text begin 67,296,000 new text end	new text begin $ new text end	new text begin 134,529,000 new text end

Sec. 2. new text begin AGRICULTURE AND VETERANS AFFAIRS APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2008" and "2009" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2008, or
June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
year ending June 30, 2007, are effective the day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2008 new text end		new text begin 2009 new text end

Sec. 3. new text begin DEPARTMENT OF AGRICULTURE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 45,274,000 new text end

new text begin $ new text end

new text begin 46,158,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 44,886,000 new text end	new text begin 45,770,000 new text end
new text begin Remediation new text end	new text begin 388,000 new text end	new text begin 388,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Protection Services new text end

new text begin 14,527,000 new text end

new text begin 13,995,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 14,139,000 new text end	new text begin 13,607,000 new text end
new text begin Remediation new text end	new text begin 388,000 new text end	new text begin 388,000 new text end

new text begin $388,000 the first year and $388,000 the
second year are from the remediation fund
for administrative funding for the voluntary
cleanup program.
new text end

new text begin $600,000 the first year is for research,
evaluation, and effectiveness monitoring of
agricultural practices in restoring impaired
waters. The funding must not be used
to hire additional employees to perform
these activities. This appropriation remains
available until spent.
new text end

new text begin $200,000 the first year and $200,000 the
second year are for clean water legacy
technical assistance in the development of
total maximum daily load (TMDL) plans.
new text end

new text begin $263,000 the first year and $267,000 the
second year are for additional invasive
species control activities.
new text end

new text begin $90,000 the first year and $92,000 the second
year are for additional meat inspection
activities.
new text end

new text begin $346,000 the first year and $205,000 the
second year are for electronic inspection
system costs for dairy and food inspections.
new text end

new text begin $120,000 the first year and $123,000 the
second year are for emergency planning
activities.
new text end

new text begin $141,000 the first year and $143,000 the
second year are for livestock premise
identification activities that increase the
state's ability to respond to animal health
emergencies.
new text end

new text begin $50,000 the first year is for export grain
inspections at the Port of Duluth. This is a
onetime appropriation.
new text end

new text begin Subd. 3. new text end new text begin Agricultural Marketing and Development new text end

new text begin 7,712,000 new text end

new text begin 5,086,000 new text end

new text begin $186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants
for Minnesota grown promotion under
Minnesota Statutes, section 17.102. Grants
may be made for one year. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract on
or before June 30, 2009, for Minnesota grown
grants in this paragraph are available until
June 30, 2011. $50,000 of the appropriation
in each year is for efforts that identify
and promote Minnesota grown products
in retail food establishments including but
not limited to restaurants, grocery stores,
and convenience stores. The balance in the
Minnesota grown matching account in the
agricultural fund is canceled to the Minnesota
grown account in the agricultural fund and
the Minnesota grown matching account is
abolished.
new text end

new text begin $160,000 the first year and $160,000 the
second year are for grants to farmers for
demonstration projects involving sustainable
agriculture as authorized in Minnesota
Statutes, section 17.116. Of the amount
for grants, up to $20,000 may be used for
dissemination of information about the
demonstration projects. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2009, for sustainable
agriculture grants in this paragraph are
available until June 30, 2011.
new text end

new text begin $100,000 the first year and $100,000
the second year are to provide training
and technical assistance to county and
town officials relating to livestock siting
issues and local zoning and land use
planning, including a checklist template that
would clarify the federal, state, and local
government requirements for consideration
of an animal agriculture modernization
or expansion project. In developing the
training and technical assistance program,
the commissioner may seek assistance from
the local planning assistance center of the
Department of Administration and shall seek
guidance, advice, and support of livestock
producer organizations, general agricultural
organizations, local government associations,
academic institutions, other government
agencies, and others with expertise in land
use and agriculture.
new text end

new text begin $103,000 the first year and $106,000 the
second year are for additional integrated pest
management activities.
new text end

new text begin $2,700,000 the first year is for the agricultural
best management practices loan program. At
least $2,160,000 is available for pass-through
to local governments and lenders for
low-interest loans.
new text end

new text begin $100,000 the first year and $100,000 the
second year are for annual cost-share
payments to resident farmers or persons
who sell, process, or package agricultural
products in this state for the costs of
organic certification. Annual cost-share
payments per farmer must be three-fourths
of the cost of the certification or $500,
whichever is less. In any year that a resident
farmer or person who sells, processes, or
packages agricultural products in this state
receives a federal organic certification
cost-share payment, that resident farmer or
person is not eligible for state cost-share
payments. This appropriation is available
until expended. The commissioner may
allocate any excess appropriation in either
fiscal year for organic producer education
efforts, assistance for persons transitioning
from conventional to organic agriculture, or
sustainable agriculture demonstration grants
authorized under Minnesota Statutes, section
17.116, and pertaining to organic research
or demonstration.
new text end

new text begin Subd. 4. new text end new text begin Bioenergy new text end

new text begin 16,368,000 new text end

new text begin 19,568,000 new text end

new text begin $15,168,000 the first year and $15,168,000
the second year are for ethanol producer
payments under Minnesota Statutes, section
41A.09. If the total amount for which
all producers are eligible in a quarter
exceeds the amount available for payments,
the commissioner shall make payments
on a pro rata basis. If the appropriation
exceeds the total amount for which all
producers are eligible in a fiscal year for
scheduled payments and for deficiencies
in payments during previous fiscal years,
the balance in the appropriation is available
to the commissioner for value-added
agricultural programs, including the product
processing and marketing grant program
under Minnesota Statutes, section 17.101,
subdivision 5. The appropriation remains
available until spent.
new text end

new text begin $4,400,000 the second year is for grants to
bioenergy projects chosen by a majority vote
of the NextGen Energy Board. The board
shall award grants to owners of Minnesota
facilities producing bioenergy or certain
nongovernmental entities. For the purposes
of this paragraph, "bioenergy" includes
transportation fuels derived from cellulosic
material as well as the generation of energy
for commercial heat, industrial process heat,
or electrical power from cellulosic material
via gasification or other processes. The board
must give priority to a bioenergy facility that
is at least 60 percent owned and controlled
by farmers, as defined in Minnesota Statutes,
section 500.24, subdivision 2, paragraph
(n), or natural persons residing in the
county or counties contiguous to where the
facility is located. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy
production or $500,000, whichever is less.
Grants to nongovernmental entities for the
development of business plans and structures
related to community ownership of eligible
bioenergy facilities together may not exceed
$150,000. The board shall make a good faith
effort to select projects that have merit and
when taken together represent a variety of
bioenergy technologies, biomass feedstocks,
and geographic regions of the state. Projects
must have a qualified engineer certification
on the technology and fuel source. Grantees
shall provide reports at the request of the
commissioner and must actively participate
in the Agricultural Utilization Research
Institute's bioenergy roundtable. No later
than February 1, 2009, the commissioner
shall report on the projects funded under
this appropriation to the house and senate
committees with jurisdiction over agriculture
finance. The commissioner's costs in
administering the program may be paid from
the appropriation.
new text end

new text begin $200,000 the first year is for a grant to the
Minnesota Turf Seed Council for basic
and applied agronomic research on native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic
or applied research. The grant recipient
must actively participate in the Agricultural
Utilization Research Institute's bioenergy
roundtable and no later than February 1,
2009, must report to the house and senate
committees with jurisdiction over agriculture
finance. This is a onetime appropriation and
is available until spent.
new text end

new text begin $200,000 the first year is for a grant to a joint
venture combined heat and power energy
facility located in Scott or LeSueur County
for the creation of a centrally located biomass
fuel supply depot with the capability of
unloading, processing, testing, scaling, and
storing renewable biomass fuels. The grant
must be matched on at least a three-to-one
basis with nonstate funds. The grant recipient
must actively participate in the Agricultural
Utilization Research Institute's bioenergy
roundtable and no later than February 1,
2009, must report to the house and senate
committees with jurisdiction over agriculture
finance. This is a onetime appropriation and
is available until spent.
new text end

new text begin $200,000 the first year is for a grant to the
Bois Forte Band of Chippewa for a feasibility
study of a renewable energy biofuels
demonstration facility on the Bois Forte
Reservation in St. Louis and Koochiching
Counties. The grant shall be used by the Bois
Forte Band to conduct a detailed feasibility
study of the economic and technical viability
of developing a multistream renewable
energy biofuels demonstration facility
on Bois Forte Reservation land to utilize
existing forest resources, woody biomass,
and cellulosic material to produce biofuels or
bioenergy. The grant recipient must actively
participate in the Agricultural Utilization
Research Institute's bioenergy roundtable and
no later than February 1, 2009, must report
to the house and senate committees with
jurisdiction over agriculture finance. This is
a onetime appropriation and is available until
spent.
new text end

new text begin $200,000 the first year is for a grant to
the White Earth Band of Chippewa for a
feasibility study of a renewable energy
biofuels production, research, and production
facility on the White Earth Reservation in
Mahnomen County. The grant must be used
by the White Earth Band and the University
of Minnesota to conduct a detailed feasibility
study of the economic and technical viability
of (1) developing a multistream renewable
energy biofuels demonstration facility on
White Earth Reservation land to utilize
existing forest resources, woody biomass,
and cellulosic material to produce biofuels or
bioenergy, and (2) developing, harvesting,
and marketing native prairie plants and seeds
for bioenergy production. The grant recipient
must actively participate in the Agricultural
Utilization Research Institute's bioenergy
roundtable and no later than February 1,
2009, must report to the house and senate
committees with jurisdiction over agriculture
finance. This is a onetime appropriation and
is available until spent.
new text end

new text begin $200,000 the first year is for a grant to the Elk
River Economic Development Authority for
upfront engineering and a feasibility study
of the Elk River renewable fuels facility.
The facility must use a plasma gasification
process to convert primarily cellulosic
material, but may also use plastics and other
components from municipal solid waste, as
feedstock for the production of methanol
for use in biodiesel production facilities.
Any unencumbered balance in fiscal year
2008 does not cancel but is available for
fiscal year 2009. Notwithstanding Minnesota
Statutes, section 16A.285, the agency must
not transfer this appropriation. The grant
recipient must actively participate in the
Agricultural Utilization Research Institute's
bioenergy roundtable and no later than
February 1, 2009, must report to the house
and senate committees with jurisdiction
over agriculture finance. This is a onetime
appropriation and is available until spent.
new text end

new text begin $200,000 the first year is for a grant to
Chisago County to conduct a detailed
feasibility study of the economic and
technical viability of developing a
multistream renewable energy biofuels
demonstration facility in Chisago, Isanti,
or Pine County to utilize existing forest
resources, woody biomass, and cellulosic
material to produce biofuels or bioenergy.
Chisago County may expend funds to Isanti
and Pine Counties and the University of
Minnesota for any costs incurred as part
of the study. The feasibility study must
consider the capacity of: (1) the seed bank
at Wild River State Park to expand the
existing prairie grass, woody biomass, and
cellulosic material resources in Chisago,
Isanti, and Pine Counties; (2) willing and
interested landowners in Chisago, Isanti, and
Pine Counties to grow cellulosic materials;
and (3) the Minnesota Conservation Corps,
the sentence to serve program, and other
existing workforce programs in east central
Minnesota to contribute labor to these
efforts. The grant recipient must actively
participate in the Agricultural Utilization
Research Institute's bioenergy roundtable and
no later than February 1, 2009, must report
to the house and senate committees with
jurisdiction over agriculture finance. This is
a onetime appropriation and is available until
spent.
new text end

new text begin Subd. 5. new text end new text begin Administration and Financial Assistance new text end

new text begin 6,667,000 new text end

new text begin 7,509,000 new text end

new text begin $1,005,000 the first year and $1,005,000
the second year are for continuation of
the dairy development and profitability
enhancement and dairy business planning
grant programs established under Laws 1997,
chapter 216, section 7, subdivision 2, and
Laws 2001, First Special Session chapter 2,
section 9, subdivision 2 . The commissioner
may allocate the available sums among
permissible activities, including efforts to
improve the quality of milk produced in the
state in the proportions that the commissioner
deems most beneficial to Minnesota's dairy
farmers. The commissioner must submit a
work plan detailing plans for expenditures
under this program to the chairs of the
house and senate committees dealing with
agricultural policy and budget on or before
the start of each fiscal year. If significant
changes are made to the plans in the course
of the year, the commissioner must notify the
chairs.
new text end

new text begin $50,000 the first year and $50,000 the second
year are for grants to the Northern Crops
Institute. No later than February 1, 2009,
the grant recipient must report to the house
and senate committees with jurisdiction over
agriculture finance. The appropriation may
be spent to purchase equipment.
new text end

new text begin $19,000 the first year and $19,000 the second
year are for grants to the Minnesota Livestock
Breeders Association. No later than February
1, 2009, the grant recipient must report
to the house and senate committees with
jurisdiction over agriculture finance.
new text end

new text begin $250,000 the first year and $250,000 the
second year are for grants to the Minnesota
Agricultural Education Leadership Council
for programs of the council under Minnesota
Statutes, chapter 41D. No later than February
1, 2009, the grant recipient must report
to the house and senate committees with
jurisdiction over agriculture finance.
new text end

new text begin $800,000 the second year is for grants
for fertilizer research as awarded by the
Minnesota Agricultural Fertilizer Research
and Education Council under Minnesota
Statutes, section 18C.71. No later than
February 1, 2009, the commissioner shall
report to the house and senate committees
with jurisdiction over agriculture finance.
The report must include the progress and
outcome of funded projects as well as the
sentiment of the council concerning the need
for additional research funded through an
industry checkoff fee.
new text end

new text begin $466,000 the first year and $466,000
the second year are for aid payments to
county and district agricultural societies
and associations under Minnesota Statutes,
section 38.02, subdivision 1, and shall be
disbursed not later than July 15. These
payments are the amount of aid owed by the
state for an annual fair held in the previous
calendar year.
new text end

new text begin $65,000 the first year and $65,000 the second
year are for annual grants to the Northern
Minnesota Forage-Turf Seed Advisory
Committee for basic and applied research on
the improved production of forage and turf
seed related to new and improved varieties.
The grant recipient may subcontract with a
qualified third party for some or all of the
basic and applied research. No later than
February 1, 2009, the grant recipient must
report to the house and senate committees
with jurisdiction over agriculture finance.
new text end

new text begin $500,000 the first year and $500,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Second Harvest food banks for the purchase
of milk for distribution to Minnesota's food
shelves and other charitable organizations
that are eligible to receive food from the food
banks. Milk purchased under the grants must
be acquired from Minnesota milk processors
and based on low-cost bids. The milk must be
allocated to each Second Harvest food bank
serving Minnesota according to the formula
used in the distribution of United States
Department of Agriculture commodities
under the Emergency Food Assistance
Program (TEFAP). Second Harvest
Heartland must submit quarterly reports to
the commissioner on forms prescribed by
the commissioner. The reports must include,
but are not limited to, information on the
expenditure of funds, the amount of milk
purchased, and the organizations to which
the milk was distributed. No later than
February 1, 2009, the commissioner must
report to the house and senate committees
with jurisdiction over agriculture finance.
Second Harvest Heartland may enter into
contracts or agreements with food banks
for shared funding or reimbursement of the
direct purchase of milk. Each food bank
receiving money from this appropriation
may use up to two percent of the grant for
administrative expenses.
new text end

new text begin $100,000 the first year and $100,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges and
Universities for mental health counseling
support to farm families and business
operators through farm business management
programs at Central Lakes College and
Ridgewater College. No later than February
1, 2009, the Board of Trustees must report
to the house and senate committees with
jurisdiction over agriculture finance.
new text end

new text begin $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Horticultural Society. No later than February
1, 2009, the grant recipient must report
to the house and senate committees with
jurisdiction over agriculture finance.
new text end

Sec. 4. new text begin BOARD OF ANIMAL HEALTH new text end

new text begin $ new text end

new text begin 3,512,000 new text end

new text begin $ new text end

new text begin 3,456,000 new text end

new text begin $408,000 the first year and $408,000 the
second year are for bovine tuberculosis
eradication and surveillance in cattle herds.
Of this amount, $159,000 is permanent.
new text end

new text begin $100,000 the first year is for reimbursements
under Minnesota Statutes, section 35.085.
This appropriation is available until spent.
new text end

Sec. 5. new text begin AGRICULTURAL UTILIZATION RESEARCH INSTITUTE new text end

new text begin $ new text end

new text begin 4,000,000 new text end

new text begin $ new text end

new text begin 4,000,000 new text end

new text begin From the appropriation in both years, the
Agricultural Utilization Research Institute
must continue to monitor and coordinate
renewable energy efforts and opportunities
in the state via the bioenergy roundtable,
the Center for Producer-Owned Energy,
and related initiatives. In addition, as part
of the bioenergy roundtable, the institute
shall convene a Bioenergy Advisory
Committee consisting of, but not limited
to, representatives of the state's agriculture,
natural resources, forestry, and rural
economic development communities and
shall present this group's viewpoints as part
of the institute's participation in the NextGen
Energy Board created in Minnesota Statutes,
section 41A.10.
new text end

Sec. 6. new text begin VETERANS AFFAIRS new text end

new text begin $ new text end

new text begin 14,447,000 new text end

new text begin $ new text end

new text begin 13,682,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 14,109,000 new text end	new text begin 13,344,000 new text end
new text begin Special Revenue new text end	new text begin 338,000 new text end	new text begin 338,000 new text end

new text begin (a) $1,000,000 each year is added to the base
for state soldier's assistance under Minnesota
Statutes, section 197.05.
new text end

new text begin (b) $1,450,000 the first year and $950,000
the second year are added to the base for
grants to counties under the terms of this
section. The commissioner shall issue a
request for proposals for grants to enhance
the benefits, programs, and services provided
to veterans. The request must specify that
priority will be given to proposals that meet
the programmatic goals established by the
commissioner, including proposals that will:
new text end

new text begin (1) provide the most effective outreach to
veterans;
new text end

new text begin (2) reintegrate combat veterans into society;
new text end

new text begin (3) collaborate with other social service
agencies, educational institutions, and other
relevant community resources;
new text end

new text begin (4) reduce homelessness among veterans;
and
new text end

new text begin (5) provide measurable outcomes.
new text end

new text begin The commissioner may provide incentives
to encourage, and may give priority to
proposals that foster, regional collaboration
for service delivery. The grants may be for a
term of up to two years. The commissioner
shall ensure that grants are made throughout
all regions of the state and shall develop a
description of best practices for the use of
these grants. A county may not reduce its
county veterans service officer budget by any
amount received as a grant under this section.
Grants made under this section are in addition
to and not subject to the requirements for
grants made under Minnesota Statutes,
section 197.608. The Minnesota Association
of County Veterans Service Officers may
apply for grants under this section beginning
July 1, 2007. Any balance remaining after
the first year does not cancel and is available
in the second year. This appropriation must
be included in the appropriation base through
fiscal year 2011.
new text end

new text begin (c) $2,000,000 each year is for outreach to
veterans. Of this amount, $750,000 each
year is for tribal veterans service offices;
$1,000,000 each year is for a grant to the
Minnesota Assistance Council for Veterans;
and $250,000 each year is for veterans
outreach programs.
new text end

new text begin (d) $250,000 each year is added to the base
for grants to Disabled American Veterans,
Military Order of the Purple Heart, Veterans
of Foreign Wars, Vietnam Veterans of
America, and other congressionally chartered
veterans service organizations designated by
the commissioner.
new text end

new text begin (e) $450,000 each year is for expansion of the
higher education veterans assistance program
established in Minnesota Statutes, section
197.585. This is a onetime appropriation.
new text end

new text begin (f) $100,000 each year is for information
technology.
new text end

new text begin (g) $75,000 each year is added to the base for
operations at the Minnesota State Veterans
Cemetery in Little Falls.
new text end

new text begin (h) $500,000 each year is added to the base
for administration of veterans programming.
new text end

new text begin (i) $63,000 the first year and $128,000
the second year are for compensation
adjustments for Department of Veterans
Affairs agency personnel.
new text end

new text begin (j) $100,000 each year is for compensation
for honor guards at the funerals of veterans
in accordance with the program established
in Minnesota Statutes, section 197.231.
new text end

new text begin (k) $26,000 each year is for spousal
education benefits in accordance with
Minnesota Statutes, section 197.75.
new text end

new text begin (l) $500,000 each year is for providing
health screening exams for depleted uranium
in Minnesota veterans in accordance with
Minnesota Statutes, section 197.08. This is a
onetime appropriation.
new text end

new text begin (m) $250,000 in the first year is for grants
to assist World War II veterans in attending
the dedication of the Minnesota World War II
Memorial in St. Paul on June 9, 2007, and for
other expenses of the dedication event. The
commissioner may spend only that portion
of this sum for which a matching amount,
whether in cash or in kind, is donated by
nongovernmental sources for this purpose.
This appropriation is available immediately.
new text end

new text begin (n) $80,000 the first year is for suicide
prevention and psychological support for
veterans. Of this amount, $50,000 is for a
study by the commissioner and the adjutant
general of the psychological status and
needs of returning Minnesota veterans,
and $30,000 is for a telephone hotline to
refer veterans to available psychological
counseling services. The commissioner
may use this appropriation to supplement
an existing informational hotline service
within the department, or may collaborate
with any other provider of compatible,
existing hotline services for this purpose.
The referral hotline must be available to
veterans statewide at all practicable hours.
The commissioner must broadly publicize
the availability of the telephone hotline
and any local, state, and federal counseling
services for Minnesota veterans using all
practicable means available, including but
not limited to: the agency Web site; local
media announcements; announcements in
service and trade publications; and any other
practical means of communication.
new text end

new text begin The commissioner may spend up to two
percent of this appropriation for development
of special informational materials, such
as refrigerator magnets, wallet cards, and
other devices on which hotline numbers
may be kept for immediate use. The
commissioner also may accept and spend
other contributions from nongovernmental
sources for this purpose. This is a onetime
appropriation.
new text end

new text begin (o) $338,000 each year is from the account
in the special revenue fund established in
Minnesota Statutes, section 190.19, for (1)
grants to veterans service organizations; and
(2) outreach to underserved veterans. Any
balance in the first year does not cancel and
is available in the second year.
new text end

ARTICLE 2

AGRICULTURE POLICY

Section 1.

Minnesota Statutes 2006, section 3.737, subdivision 1, is amended to read:

Subdivision 1.

Compensation required.

(a) Notwithstanding section 3.736,
subdivision 3, paragraph (e), or any other law, a livestock owner shall be compensated
by the commissioner of agriculture for livestock that is destroyed by a gray wolf or is
so crippled by a gray wolf that it must be destroyed. deleted text begin The deleted text end new text begin Except as provided in this
section, the new text end owner is entitled to the fair market value of the destroyed livestock as
determined by the commissioner, upon recommendation of a university extension agent
or a conservation officer. new text begin In any fiscal year, a livestock owner may not be compensated
for a destroyed animal claim that is less than $100 in value and may be compensated up
to $20,000, as determined under this section. In any fiscal year, the commissioner may
provide compensation for claims filed under this section and section 3.7371 up to a total
of $100,000 for both programs combined.
new text end

(b) Either the agent or the conservation officer must make a personal inspection of
the site. The agent or the conservation officer must take into account factors in addition to
a visual identification of a carcass when making a recommendation to the commissioner.
The commissioner, upon recommendation of the agent or conservation officer, shall
determine whether the livestock was destroyed by a gray wolf and any deficiencies in the
owner's adoption of the best management practices developed in subdivision 5. The
commissioner may authorize payment of claims only if the agent or the conservation
officer has recommended payment. The owner shall file a claim on forms provided by the
commissioner and available at the university extension agent's office.

Sec. 2.

Minnesota Statutes 2006, section 3.7371, subdivision 3, is amended to read:

Subd. 3.

Compensation.

The crop owner is entitled to the target price or the
market price, whichever is greater, of the damaged or destroyed crop plus adjustments
for yield loss determined according to agricultural stabilization and conservation service
programs for individual farms, adjusted annually, as determined by the commissioner,
upon recommendation of the county extension agent for the owner's county. The
commissioner, upon recommendation of the agent, shall determine whether the crop
damage or destruction is caused by elk and, if so, the amount of the crop that is damaged
or destroyed. In any deleted text begin calendar deleted text end new text begin fiscal new text end year, a crop owner may not be compensated for a
damaged or destroyed crop that is less than $100 in value and may be compensated up to
$20,000, as determined under this section, if normal harvest procedures for the area are
followed. new text begin In any fiscal year, the commissioner may provide compensation for claims filed
under this section and section 3.737 up to a total of $100,000 for both programs combined.
new text end

Sec. 3.

Minnesota Statutes 2006, section 17.03, subdivision 3, is amended to read:

Subd. 3.

Cooperation with federal agencies.

new text begin (a) new text end The commissioner shall cooperate
with the government of the United States, with financial agencies created to assist in the
development of the agricultural resources of this state, and so far as practicable may use
the facilities provided by the existing state departments and the various state and local
organizations. This subdivision is intended to relate to every function and duty which
devolves upon the commissioner.

new text begin (b) The commissioner may apply for, receive, and disburse federal funds made
available to the state by federal law or regulation for any purpose related to the powers
and duties of the commissioner. All money received by the commissioner under this
paragraph shall be deposited in the state treasury and is appropriated to the commissioner
for the purposes for which it was received. Money received under this paragraph does not
cancel and is available for expenditure according to federal law. The commissioner may
contract with and enter into grant agreements with persons, organizations, educational
institutions, firms, corporations, other state agencies, and any agency or instrumentality of
the federal government to carry out agreements made with the federal government relating
to the expenditure of money under this paragraph. Bid requirements under chapter 16C do
not apply to contracts under this paragraph.
new text end

Sec. 4.

Minnesota Statutes 2006, section 17.101, subdivision 2, is amended to read:

Subd. 2.

Agricultural development grants and contracts.

In order to carry out
the duties in subdivision 1, the commissioner, in addition to whatever other resources
the department may commit, shall make grants and enter into contracts to fulfill the
obligations of subdivision 1. The commissioner may enter into partnerships or seek gifts to
carry out subdivision 1. The commissioner may contract with, among others, agricultural
commodity organizations, the University of Minnesota, and agriculture related businesses
to fulfill the duties. The commissioner shall make permanent rules for the administration
of these grants and contracts. The rules shall specify at a minimum:

(a) eligibility criteria;

(b) application procedures;

(c) provisions for application review and project approval;

(d) provisions for program monitoring and review for all approved grants and
contracts; and

(e) other provisions the commissioner finds necessary.

Contracts entered into by the commissioner pursuant to this subdivision shall not
exceed 75 percent of the cost of the project supported by the commissioner's grant. In
any deleted text begin biennium deleted text end new text begin year new text end , no organization shall receive more than $70,000 in grants from the
commissioner.

Sec. 5.

Minnesota Statutes 2006, section 17.102, subdivision 1, is amended to read:

Subdivision 1.

Establishment and use of label.

(a) The commissioner shall
establish a "Minnesota grown" logo or labeling statement for use in identifying
agricultural products that are grown, new text begin raised, new text end processed, or manufactured in this state.
The commissioner may develop labeling statements that apply to specific marketing or
promotional needs. One version of a labeling statement must identify food products
certified as organically grown in this state. The Minnesota grown logo or labeling
statement may be used on deleted text begin raw agricultural deleted text end products only if 80 percent or more of the
agricultural product is produced in this state.

(b) The Minnesota grown logo or labeling statement may not be used without
a license from the commissioner except that wholesalers and retailers may use the
Minnesota grown logo and labeling statement for displaying and advertising products that
qualify for use of the Minnesota grown logo or labeling statement.

Sec. 6.

Minnesota Statutes 2006, section 17.102, subdivision 3, is amended to read:

Subd. 3.

License.

A person may not use the Minnesota grown logo or labeling
without an annual license from the commissioner. The commissioner shall issue licenses
for a fee of deleted text begin $5 deleted text end new text begin $20 new text end .

Sec. 7.

Minnesota Statutes 2006, section 17.102, subdivision 4, is amended to read:

Subd. 4.

Minnesota grown account.

The Minnesota grown account is established
as an account in the agricultural fund. License fee receipts and penalties collected under
this section must be deposited in the agricultural fund and credited to the Minnesota grown
account. The money in the account is continuously appropriated to the commissioner deleted text begin to
implement and enforce this section and to promote the Minnesota grown logo and labeling deleted text end new text begin
for the direct costs of implementing the Minnesota grown program new text end .

Sec. 8.

Minnesota Statutes 2006, section 17.102, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Funding sources. new text end

new text begin The Minnesota grown account shall consist of
license fees, penalties, advertising revenue, revenue from the development and sale of
promotional materials, gifts, and appropriations.
new text end

Sec. 9.

Minnesota Statutes 2006, section 17.102, is amended by adding a subdivision
to read:

new text begin Subd. 4b. new text end

new text begin Appropriations must be matched by private funds. new text end

new text begin Appropriations
from the Minnesota grown account may be expended only to the extent that they are
matched with contributions to the account from private sources on a basis of at least $1
of private contributions to each $4 of state money. For the purposes of this subdivision,
"private contributions" includes, but is not limited to, license fees, penalties, advertising
revenue, revenue from the development and sale of promotional materials, and gifts.
new text end

Sec. 10.

Minnesota Statutes 2006, section 17.117, subdivision 1, is amended to read:

Subdivision 1.

Purpose.

The purpose of the agriculture best management practices
loan program is to provide low or no interest financing to farmers, agriculture supply
businesses, deleted text begin and deleted text end rural landowners new text begin , and water-quality cooperatives new text end for the implementation
of agriculture and other best management practices that reduce environmental pollution.

Sec. 11.

Minnesota Statutes 2006, section 17.117, subdivision 4, is amended to read:

Subd. 4.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Agricultural and environmental revolving accounts" means accounts in the
agricultural fund, controlled by the commissioner, which hold funds available to the
program.

(c) "Agriculture supply business" means a person, partnership, joint venture,
corporation, limited liability company, association, firm, public service company,
or cooperative that provides materials, equipment, or services to farmers or
agriculture-related enterprises.

(d) "Allocation" means the funds awarded to an applicant for implementation of best
management practices through a competitive or noncompetitive application process.

(e) "Applicant" means a local unit of government eligible to participate in this
program that requests an allocation of funds as provided in subdivision 6b.

(f) "Best management practices" has the meaning given in sections 103F.711,
subdivision 3, and 103H.151, subdivision 2, or other practices, techniques, and measures
that have been demonstrated to the satisfaction of the commissioner to prevent or reduce
adverse environmental impacts by using the most effective and practicable means of
achieving environmental goals.

(g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner
applying for a low-interest loan.

(h) "Commissioner" means the commissioner of agriculture, including when the
commissioner is acting in the capacity of chair of the Rural Finance Authority, or the
designee of the commissioner.

(i) "Committed project" means an eligible project scheduled to be implemented at
a future date:

(1) that has been approved and certified by the local government unit; and

(2) for which a local lender has obligated itself to offer a loan.

(j) "Comprehensive water management plan" means a state approved and locally
adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331,
103D.401, or 103D.405.

(k) "Cost incurred" means expenses for implementation of a project accrued because
the borrower has agreed to purchase equipment or is obligated to pay for services or
materials already provided as a result of implementing deleted text begin a prior deleted text end new text begin an new text end approved eligible project.

(l) "Farmer" means a person, partnership, joint venture, corporation, limited liability
company, association, firm, public service company, or cooperative that regularly
participates in physical labor or operations management of farming and files a Schedule F
as part of filing United States Internal Revenue Service Form 1040 or indicates farming as
the primary business activity under Schedule C, K, or S, or any other applicable report to
the United States Internal Revenue Service.

(m) "Lender agreement" means an agreement entered into between the commissioner
and a local lender which contains terms and conditions of participation in the program.

(n) "Local government unit" means a county, soil and water conservation district,
or an organization formed for the joint exercise of powers under section 471.59 with
the authority to participate in the program.

(o) "Local lender" means a local government unit as defined in paragraph (n), a state
or federally chartered bank, a savings association, a state or federal credit union, Agribank
and its affiliated organizations, or a nonprofit economic development organization or other
financial lending institution approved by the commissioner.

(p) "Local revolving loan account" means the account held by a local government
unit and a local lender into which principal repayments from borrowers are deposited and
new loans are issued in accordance with the requirements of the program and lender
agreements.

(q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.

(r) "Program" means the agriculture best management practices loan program
in this section.

(s) "Project" means one or more components or activities located within Minnesota
that are required by the local government unit to be implemented for satisfactory
completion of an eligible best management practice.

(t) "Rural landowner" means the owner of record of Minnesota real estate located
in an area determined by the local government unit to be rural after consideration of
local land use patterns, zoning regulations, jurisdictional boundaries, local community
definitions, historical uses, and other pertinent local factors.

new text begin (u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph
(d), except as expressly limited in this section.
new text end

Sec. 12.

Minnesota Statutes 2006, section 17.117, subdivision 5a, is amended to read:

Subd. 5a.

Agricultural and environmental revolving accounts.

(a) There
shall be established in the deleted text begin agricultural deleted text end new text begin special revenue new text end fund revolving accounts to
receive appropriations, transfers of the balances from previous appropriations for the
activities under this section, and money from other sources. All balances from previous
appropriations for activities under this section and repayments of loans granted under this
section, including principal and interest, must be deposited into the appropriate revolving
account created in this subdivision or the account created in subdivision 13. Interest
earned in an account accrues to that account.

(b) The money in the revolving accounts and the account created in subdivision 13 is
appropriated to the commissioner for the purposes of this section.

Sec. 13.

Minnesota Statutes 2006, section 17.117, subdivision 5b, is amended to read:

Subd. 5b.

Application fee.

The commissioner may impose a nonrefundable
application fee of $50 for each loan issued under the program. The fees must be credited
to the agricultural best management practices administration account, which is hereby
established in the deleted text begin agricultural deleted text end new text begin special revenue new text end fund. Interest earned in the account accrues
to the account. Money in the account and interest earned in the accounts established
in the agricultural fund under subdivision 5a are appropriated to the commissioner for
administrative expenses of the program.

Sec. 14.

Minnesota Statutes 2006, section 17.117, subdivision 11, is amended to read:

Subd. 11.

Loans issued to borrower.

(a) Local lenders may issue loans only for
projects that are approved and certified by the local government unit as meeting priority
needs identified in a comprehensive water management plan or other local planning
documents, are in compliance with accepted practices, standards, specifications, or
criteria, and are eligible for financing under Environmental Protection Agency or other
applicable guidelines.

(b) The local lender may use any additional criteria considered necessary to
determine the eligibility of borrowers for loans.

(c) Local lenders shall set the terms and conditions of loans to borrowers, except that:

(1) no loan to a borrower may exceed deleted text begin $50,000 deleted text end new text begin $100,000 new text end ;

(2) no loan for a project may exceed deleted text begin $50,000 deleted text end new text begin $100,000 new text end ; and

(3) no borrower shall, at any time, have multiple loans from this program with a total
outstanding loan balance of more than deleted text begin $50,000 deleted text end new text begin $100,000 new text end .

(d) deleted text begin The maximum term length for conservation tillage projects is five years. deleted text end The
maximum term length for deleted text begin other deleted text end projects in this paragraph is ten years.

deleted text begin (e) Notwithstanding paragraph (c), a local lender may issue a loan of up to $100,000
for a community sewage treatment system serving two or more households.
deleted text end

deleted text begin (f) deleted text end new text begin (e) new text end Fees charged at the time of closing must:

(1) be in compliance with normal and customary practices of the local lender;

(2) be in accordance with published fee schedules issued by the local lender;

(3) not be based on participation program; and

(4) be consistent with fees charged other similar types of loans offered by the local
lender.

deleted text begin (g) deleted text end new text begin (f) new text end The interest rate assessed to an outstanding loan balance by the local lender
must not exceed three percent per year.

Sec. 15.

Minnesota Statutes 2006, section 17.983, subdivision 1, is amended to read:

Subdivision 1.

Administrative penalties; citation.

If a person has violated a
provision of chapter new text begin 25, new text end 28A, 29, 31, 31A, 31B, 32, or 34, the commissioner may issue a
written citation to the person by personal service or by certified mail. The citation must
describe the nature of the violation and the statute or rule alleged to have been violated;
state the time for correction, if applicable; and the amount of any proposed fine. The
citation must advise the person to notify the commissioner in writing within 30 days if the
person wishes to appeal the citation. If the person fails to appeal the citation, the citation
is the final order and not subject to further review.

Sec. 16.

Minnesota Statutes 2006, section 17B.03, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Port of Duluth. new text end

new text begin The commissioner shall provide official services for
grain for export from the Port of Duluth, including inspection, weighing, supervision of
weights, and related services. The commissioner shall maintain and, when required, renew
delegated authority from the United States Department of Agriculture as required by
federal law to provide official export grain inspection services.
new text end

Sec. 17.

Minnesota Statutes 2006, section 18B.065, subdivision 1, is amended to read:

Subdivision 1.

Collection and disposal.

The commissioner of agriculture shall
establish and operate a program to collect waste pesticides. The program deleted text begin shall deleted text end new text begin must new text end be
made available to new text begin agriculture and residential new text end pesticide end users whose waste generating
activity occurs in this state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007, and applies to all
cooperative agreements entered into by the commissioner of agriculture and local units of
government for waste pesticide collection and disposal after that date.
new text end

Sec. 18.

Minnesota Statutes 2006, section 18B.065, subdivision 2a, is amended to read:

Subd. 2a.

Disposal site requirement.

The commissioner must designate a place
new text begin in each county of the state new text end that is available at least every other year deleted text begin for the residents of
each county in the state deleted text end new text begin persons new text end to dispose of unused portions of pesticides new text begin in accordance
with subdivision 1. The commissioner shall consult with the person responsible for solid
waste management and disposal in each county to determine an appropriate location new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007, and applies to all
cooperative agreements entered into by the commissioner of agriculture and local units of
government for waste pesticide collection and disposal after that date.
new text end

Sec. 19.

Minnesota Statutes 2006, section 18B.26, subdivision 3, is amended to read:

Subd. 3.

Application fee.

(a) A registrant shall pay an annual application fee for
each pesticide to be registered, and this fee is set at 0.4 percent of annual gross sales
within the state and annual gross sales of pesticides used in the state, with a minimum
nonrefundable fee of $250. The registrant shall determine when and which pesticides
are sold or used in this state. The registrant shall secure sufficient sales information of
pesticides distributed into this state from distributors and dealers, regardless of distributor
location, to make a determination. Sales of pesticides in this state and sales of pesticides
for use in this state by out-of-state distributors are not exempt and must be included in the
registrant's annual report, as required under paragraph (c), and fees shall be paid by the
registrant based upon those reported sales. Sales of pesticides in the state for use outside
of the state are exempt from the application fee in this paragraph if the registrant properly
documents the sale location and distributors. A registrant paying more than the minimum
fee shall pay the balance due by March 1 based on the gross sales of the pesticide by the
registrant for the preceding calendar year. The fee for disinfectants and sanitizers shall be
the minimum. The minimum fee is due by December 31 preceding the year for which
the application for registration is made. The commissioner shall spend at least deleted text begin $300,000 deleted text end new text begin
$400,000, not including the commissioner's administrative costs, new text end per fiscal year from the
pesticide regulatory account for the purposes of the waste pesticide collection program.

(b) An additional fee of $100 must be paid by the applicant for each pesticide to be
registered if the application is a renewal application that is submitted after December 31.

(c) A registrant must annually report to the commissioner the amount and type of
each registered pesticide sold, offered for sale, or otherwise distributed in the state. The
report shall be filed by March 1 for the previous year's registration. The commissioner
shall specify the form of the report and require additional information deemed necessary
to determine the amount and type of pesticides annually distributed in the state. The
information required shall include the brand name, amount, and formulation of each
pesticide sold, offered for sale, or otherwise distributed in the state, but the information
collected, if made public, shall be reported in a manner which does not identify a specific
brand name in the report.

(d) A registrant who is required to pay more than the minimum fee for any pesticide
under paragraph (a) must pay a late fee penalty of $100 for each pesticide application fee
paid after March 1 in the year for which the license is to be issued.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007, and applies to all
cooperative agreements entered into by the commissioner of agriculture and local units of
government for waste pesticide collection and disposal after that date.
new text end

Sec. 20.

Minnesota Statutes 2006, section 18B.33, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) A person may not apply a pesticide for hire
without a commercial applicator license for the appropriate use categories or a structural
pest control license deleted text begin or aquatic pest control license deleted text end .

deleted text begin (b) A person with a commercial applicator license may not apply pesticides on
or into surface waters without an aquatic pest control license under section ,
except an aquatic pest control license is not required for licensed commercial applicators
applying pesticides for the purposes of:
deleted text end

deleted text begin (1) pest control on cultivated wild rice;
deleted text end

deleted text begin (2) mosquito and black fly control operations;
deleted text end

deleted text begin (3) pest control on rights-of-way;
deleted text end

deleted text begin (4) aerial pest control operations for emergent vegetation control;
deleted text end

deleted text begin (5) aerial application of piscicides; and
deleted text end

deleted text begin (6) pest control for silvicultural operations.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end A commercial applicator licensee must have a valid license identification card
when applying pesticides for hire and must display it upon demand by an authorized
representative of the commissioner or a law enforcement officer. The commissioner shall
prescribe the information required on the license identification card.

Sec. 21.

Minnesota Statutes 2006, section 18B.34, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) Except for a licensed commercial applicator,
certified private applicator, deleted text begin a licensed aquatic pest control applicator, deleted text end or licensed structural
pest control applicator, a person, including a government employee, may not use a
restricted use pesticide in performance of official duties without having a noncommercial
applicator license for an appropriate use category.

deleted text begin (b) A licensed noncommercial applicator may not apply pesticides into or on surface
waters without an aquatic pest control license, except an aquatic pest control license is not
required for licensed noncommercial applicators applying pesticides for the purposes of:
deleted text end

deleted text begin (1) mosquito and black fly control operations;
deleted text end

deleted text begin (2) pest control on rights-of-way;
deleted text end

deleted text begin (3) pest control operations for purple loosestrife control;
deleted text end

deleted text begin (4) application of piscicides; and
deleted text end

deleted text begin (5) pest control for silvicultural operations.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end A licensee must have a valid license identification card when applying
pesticides and must display it upon demand by an authorized representative of the
commissioner or a law enforcement officer. The license identification card must contain
information required by the commissioner.

Sec. 22.

Minnesota Statutes 2006, section 18B.345, is amended to read:

18B.345 PESTICIDE APPLICATION ON GOLF COURSES.

(a) Application of a pesticide to the property of a golf course must be performed by:

(1) a structural pest control applicator; new text begin or
new text end

(2) a commercial or noncommercial pesticide applicator with appropriate use
certification deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (3) an aquatic pest control applicator.
deleted text end

(b) Pesticides determined by the commissioner to be sanitizers and disinfectants are
exempt from the requirements in paragraph (a).

Sec. 23.

Minnesota Statutes 2006, section 18C.305, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Exemption. new text end

new text begin A permit and safeguard is not required for agricultural
commodity producers who store, on their own property, for their own use, no more than
6,000 gallons of liquid commercial fertilizer.
new text end

Sec. 24.

new text begin [18C.70] MINNESOTA AGRICULTURAL FERTILIZER RESEARCH
AND EDUCATION COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; membership. new text end

new text begin (a) The Minnesota Agricultural
Fertilizer Research and Education Council is established. The council is composed of
12 voting members as follows:
new text end

new text begin (1) two members of the Minnesota Crop Production Retailers;
new text end

new text begin (2) one member of the Minnesota Corn Growers Association;
new text end

new text begin (3) one member of the Minnesota Soybean Growers Association;
new text end

new text begin (4) one member of the sugar beet growers industry;
new text end

new text begin (5) one member of the Minnesota Association of Wheat Growers;
new text end

new text begin (6) one member of the potato growers industry;
new text end

new text begin (7) one member of the Minnesota Farm Bureau;
new text end

new text begin (8) one member of the Minnesota Farmers Union;
new text end

new text begin (9) one member from the Minnesota Irrigators Association;
new text end

new text begin (10) one member of the Minnesota Grain and Feed Association; and
new text end

new text begin (11) one member of the Minnesota Independent Crop Consultant Association or the
Minnesota certified crop advisor program.
new text end

new text begin (b) Council members shall serve three-year terms. After the initial council is
appointed, subsequent appointments must be staggered so that one-third of council
membership is replaced each year. Council members must be nominated by their
organizations and appointed by the commissioner. The council may add ex-officio
members at its discretion. The council must meet at least once per year, with all
related expenses reimbursed by members' sponsoring organizations or by the members
themselves.
new text end

new text begin Subd. 2. new text end

new text begin Powers and duties. new text end

new text begin The council must review applications and select
projects to receive agricultural fertilizer research and education program grants, as
authorized in section 18C.71. The council must establish a program to provide grants to
research, education, and technology transfer projects related to agricultural fertilizer,
soil amendments, and plant amendments. For the purpose of this section, "fertilizer"
includes soil amendments and plant amendments, but does not include vegetable or animal
manures that are not manipulated. The commissioner has authority over all deposits to
and withdrawals from the program account authorized in subdivision 4, but after January
1, 2008, the council may select the commissioner or any other person it considers fit
to perform all other administrative duties related to the program. The commissioner
is responsible for all fiscal and administrative duties in the first year and may use up
to eight percent of program revenue to offset costs incurred. No later than October 1,
2007, the commissioner must provide the council with an estimate of the annual costs the
commissioner would incur in administering the program.
new text end

new text begin Subd. 3. new text end

new text begin Checkoff fees. new text end

new text begin The legislature, if requested by a formal order from the
council, may implement, administer, or discontinue a checkoff fee to provide funding
for grants under section 18C.71. During any period that a checkoff fee is in effect, any
person, whether in Minnesota or elsewhere, that sells fertilizer to producers must collect
a checkoff fee of 40 cents per ton of fertilizer sold and forward the checkoff funds at
least semiannually to the commissioner along with forms provided by the commissioner.
For the purposes of this section, "producer" means a person who owns or operates an
agricultural producing or growing facility for an agricultural commodity, shares in the
profits and risk of loss from the operation, and grows, raises, feeds, or produces the
agricultural commodity in Minnesota during the current or preceding calendar year.
new text end

new text begin Subd. 4. new text end

new text begin Program account. new text end

new text begin There is established in the state treasury an agricultural
fertilizer research and education program account in the agricultural fund. The checkoff
funds raised under this section must be deposited in the account.
new text end

new text begin Subd. 5. new text end

new text begin Refunds. new text end

new text begin A producer may, by use of forms provided by the commissioner
and upon presentation of proof the commissioner requires, have the checkoff fee refunded
if the checkoff fee was remitted on a timely basis. The producer must submit refund
requests to the commissioner by February 28 each year for checkoff fees paid in the
previous calendar year. For checkoff fees paid between January 1, 2008, and January 1,
2009, refunds must not be issued until January 15, 2009.
new text end

new text begin Subd. 6. new text end

new text begin Rules. new text end

new text begin The commissioner's duties under this section and section 18C.71
are not subject to the provisions of chapter 14.
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires January 8, 2017.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 25.

new text begin [18C.71] MINNESOTA AGRICULTURAL FERTILIZER RESEARCH
AND EDUCATION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Eligible projects. new text end

new text begin Eligible project activities include research,
education, and technology transfer related to the production and application of fertilizer,
soil amendments, and other plant amendments. Chosen projects must contain a component
of outreach that achieves a timely dissemination of findings and their applicability to the
production agricultural community.
new text end

new text begin Subd. 2. new text end

new text begin Awarding grants. new text end

new text begin Applications for program grants must be submitted in
the form prescribed by the Minnesota Agricultural Fertilizer Research and Education
Council. Applications must be submitted on or before the deadline prescribed by the
council. All applications are subject to a thorough in-state review by a peer committee
established and approved by the council. Each project meeting the basic qualifications is
subject to a yes or no vote by each council member. Projects chosen to receive funding
must achieve an affirmative vote from at least eight of the 12 council members or
two-thirds of voting members present. Projects awarded program funds must submit an
annual progress report in the form prescribed by the council.
new text end

new text begin Subd. 3. new text end

new text begin Annual audit. new text end

new text begin The program must have an annual audit of financial
activities, which the council must file with the commissioner on or before June 1 for the
immediately preceding year ending December 31.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires January 8, 2017.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 26.

Minnesota Statutes 2006, section 18E.02, subdivision 5, is amended to read:

Subd. 5.

Eligible person.

"Eligible person" means:

(1) a responsible party or an owner of real property, but does not include the state,
a state agency, new text begin or new text end a political subdivision of the state, except as provided in clause (2) deleted text begin , deleted text end new text begin ;
common carriers, as defined by section 218.011, subdivision 10; motor carriers as defined
by section 221.011, subdivision 15, while transporting agricultural chemicals except as
provided in clause (3); or new text end the federal government deleted text begin , deleted text end or an agency of the federal government;

(2) the owners of municipal airports in Minnesota where a licensed aerial pesticide
applicator has caused an incident through storage, handling, or distribution operations for
agricultural chemicals if (i) the commissioner has determined that corrective action is
necessary and (ii) the commissioner determines, and the Agricultural Chemical Response
Compensation Board concurs, that based on an affirmative showing made by the owner, a
responsible party cannot be identified or the identified responsible party is unable to
comply with an order for corrective action; or

(3) a person involved in a transaction relating to real property who is not a responsible
party or owner of the real property and who voluntarily takes corrective action on the
property in response to a request or order for corrective action from the commissioner.

Sec. 27.

Minnesota Statutes 2006, section 18E.02, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Incident. new text end

new text begin "Incident" means a flood, fire, tornado, transportation accident,
storage container rupture, leak, spill, emission discharge, escape, disposal, or other event
that releases an agricultural chemical accidentally or otherwise into the environment and
may cause unreasonable adverse effects on the environment. Incident does not include a
release from the normal use of a product or practice in accordance with law.
new text end

Sec. 28.

Minnesota Statutes 2006, section 18E.03, subdivision 4, is amended to read:

Subd. 4.

Fee.

(a) The response and reimbursement fee consists of the surcharges and
any adjustments made by the commissioner in this subdivision and shall be collected by
the commissioner. The amount of the response and reimbursement fee shall be determined
and imposed annually by the commissioner as required to satisfy the requirements in
subdivision 3. The commissioner shall adjust the amount of the surcharges imposed in
proportion to the amount of the surcharges listed in this subdivision. License application
categories under paragraph (d) must be charged in proportion to the amount of surcharges
imposed up to a maximum of 50 percent of the license fees set under chapters 18B and
18C.

(b) The commissioner shall impose a surcharge on pesticides registered under
chapter 18B to be collected as a surcharge on the registration application fee under
section 18B.26, subdivision 3, that is equal to 0.1 percent of sales of the pesticide in the
state and sales of pesticides for use in the state during the previous calendar year, except
the surcharge may not be imposed on pesticides that are sanitizers or disinfectants as
determined by the commissioner. No surcharge is required if the surcharge amount based
on percent of annual gross sales is less than $10. The registrant shall determine when and
which pesticides are sold or used in this state. The registrant shall secure sufficient sales
information of pesticides distributed into this state from distributors and dealers, regardless
of distributor location, to make a determination. Sales of pesticides in this state and sales
of pesticides for use in this state by out-of-state distributors are not exempt and must be
included in the registrant's annual report, as required under section 18B.26, subdivision 3,
paragraph (c), and fees shall be paid by the registrant based upon those reported sales.
Sales of pesticides in the state for use outside of the state are exempt from the surcharge in
this paragraph if the registrant properly documents the sale location and the distributors.

(c) The commissioner shall impose a ten cents per ton surcharge on the inspection
fee under section 18C.425, subdivision 6, for fertilizers, soil amendments, and plant
amendments.

(d) The commissioner shall impose a surcharge on the license application of persons
licensed under chapters 18B and 18C consisting of:

(1) a $75 surcharge for each site where pesticides are stored or distributed, to
be imposed as a surcharge on pesticide dealer application fees under section 18B.31,
subdivision 5;

(2) a $75 surcharge for each site where a fertilizer, plant amendment, or soil
amendment is distributed, to be imposed on persons licensed under sections 18C.415
and 18C.425;

(3) a $50 surcharge to be imposed on a structural pest control applicator license
application under section 18B.32, subdivision 6, for business license applications only;

(4) a $20 surcharge to be imposed on commercial applicator license application fees
under section 18B.33, subdivision 7; new text begin and
new text end

(5) a $20 surcharge to be imposed on noncommercial applicator license application
fees under section 18B.34, subdivision 5, except a surcharge may not be imposed on a
noncommercial applicator that is a state agency, political subdivision of the state, the
federal government, or an agency of the federal government deleted text begin ; and deleted text end new text begin . new text end

deleted text begin (6) a $20 surcharge to be imposed on aquatic pest control licenses under section
.
deleted text end

(e) A $1,000 fee shall be imposed on each site where pesticides are stored and sold
for use outside of the state unless:

(1) the distributor properly documents that it has less than $2,000,000 per year in
wholesale value of pesticides stored and transferred through the site; or

(2) the registrant pays the surcharge under paragraph (b) and the registration fee
under section 18B.26, subdivision 3, for all of the pesticides stored at the site and sold for
use outside of the state.

(f) Paragraphs (c) to (e) apply to sales, licenses issued, applications received for
licenses, and inspection fees imposed on or after July 1, 1990.

Sec. 29.

Minnesota Statutes 2006, section 25.341, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

Before a person may: (1) manufacture a commercial
feed in the state; (2) distribute a commercial feed in or into the state; or (3) have the
person's name appear on the label of a commercial feed as guarantor, the person must have
a commercial feed license for each manufacturing or distributing facility. A person who
makes only retail sales of commercial feed deleted text begin bearing labeling or another approved indication
that the commercial feed is from a licensed manufacturer, guarantor, or distributor who
has assumed full responsibility for the tonnage inspection fee due under sections 25.31 to
25.43 deleted text end new text begin , guaranteed by another, new text end is not required to obtain a license.

Sec. 30.

Minnesota Statutes 2006, section 28A.04, subdivision 1, is amended to read:

Subdivision 1.

Application; date of issuance.

(a) No person shall engage in the
business of manufacturing, processing, selling, handling, or storing food without having
first obtained from the commissioner a license for doing such business. Applications for
such license shall be made to the commissioner in such manner and time as required
and upon such forms as provided by the commissioner and shall contain the name and
address of the applicant, address or description of each place of business, and the nature
of the business to be conducted at each place, and such other pertinent information as
the commissioner may require.

(b) A retail or wholesale food handler license shall be issued for the period July 1
to June 30 following and shall be renewed thereafter by the licensee on or before July
1 each year, except that new text begin :
new text end

new text begin (1) new text end licenses for all mobile food concession units and retail mobile units deleted text begin shall deleted text end new text begin must new text end be
issued for the period April 1 to March 31, and deleted text begin shall deleted text end new text begin must new text end be renewed thereafter by the
licensee on or before April 1 each year new text begin ; and
new text end

new text begin (2) a license issued for a temporary food concession stand must have a license
issuance and renewal date consistent with appropriate statutory provisions new text end .

A license for a food broker or for a food processor or manufacturer shall be issued for the
period January 1 to December 31 following and shall be renewed thereafter by the licensee
on or before January 1 of each year, except that a license for a wholesale food processor or
manufacturer operating only at the state fair shall be issued for the period July 1 to June 30
following and shall be renewed thereafter by the licensee on or before July 1 of each year.
A penalty for a late renewal shall be assessed in accordance with section 28A.08.

(c) A person applying for a new license up to 14 calendar days before the effective
date of the new license period under paragraph (b) must be issued a license for the 14 days
and the next license year as a single license and pay a single license fee as if the 14 days
were part of the upcoming license period.

Sec. 31.

Minnesota Statutes 2006, section 28A.06, is amended to read:

28A.06 EXTENT OF LICENSE.

No person, except as described in sections 27.03 and 27.04, shall be required to
hold more than one license in order to engage in any aspect of food handling described
in section 28A.05 provided, that each issued license shall be valid for no more than one
place of business, except that a license for a mobile unit or a new text begin retail food vehicle, new text end portable
structure new text begin , or cart new text end is valid statewide and is required to be issued only once each year unless
the licensee fails to display the license as required by section 28A.07 new text begin or it is a seasonal
permanent food stand, seasonal temporary food stand, food cart, or special event food
stand as defined in section 157.15, in which case the duration of the license is restricted by
the limitations found in the definitions in section 157.15 new text end .

Sec. 32.

Minnesota Statutes 2006, section 28A.082, subdivision 1, is amended to read:

Subdivision 1.

Fees; application.

The fees for review of food handler facility floor
plans under the Minnesota Food Code are based upon the square footage of the structure
being newly constructed, remodeled, or converted. The fees for the review shall be:

	square footage		review fee
	0 - 4,999 .	$	deleted text begin 156.25 deleted text end new text begin 200.00 new text end
	5,000 - 24,999 .	$	deleted text begin 218.75 deleted text end new text begin 275.00 new text end
	25,000 plus .	$	deleted text begin 343.75 deleted text end new text begin 425.00 new text end

The applicant must submit the required fee, review application, plans, equipment
specifications, materials lists, and other required information on forms supplied by the
department at least 30 days prior to commencement of construction, remodeling, or
conversion.

Sec. 33.

new text begin [28A.21] FOOD SAFETY AND DEFENSE TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Food Safety and Defense Task Force is
established to advise the commissioner and the legislature on food issues and food safety.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The Food Safety and Defense Task Force consists of:
new text end

new text begin (1) the commissioner of agriculture or the commissioner's designee;
new text end

new text begin (2) the commissioner of health or the commissioner's designee;
new text end

new text begin (3) a representative of the United States Food and Drug Administration;
new text end

new text begin (4) a representative of the United States Department of Agriculture;
new text end

new text begin (5) a representative of the Agricultural Utilization Research Institute;
new text end

new text begin (6) one member of the Minnesota Grocers Association;
new text end

new text begin (7) one member from the University of Minnesota knowledgeable in food and food
safety issues; and
new text end

new text begin (8) nine members appointed by the governor who are interested in food and food
safety, of whom:
new text end

new text begin (i) two persons are health or food professionals;
new text end

new text begin (ii) one person represents a statewide general farm organization;
new text end

new text begin (iii) one person represents a local food inspection agency; and
new text end

new text begin (iv) one person represents a food-oriented consumer group.
new text end

new text begin (b) Members shall serve without compensation. Members appointed by the governor
shall serve four-year terms.
new text end

new text begin Subd. 3. new text end

new text begin Organization. new text end

new text begin (a) The task force shall meet monthly or as determined by
the chair.
new text end

new text begin (b) The members of the task force shall annually elect a chair and other officers
as the members deem necessary.
new text end

new text begin Subd. 4. new text end

new text begin Staff. new text end

new text begin The commissioner shall provide support staff, office space, and
administrative services for the task force.
new text end

new text begin Subd. 5. new text end

new text begin Duties. new text end

new text begin The task force shall:
new text end

new text begin (1) coordinate educational efforts regarding food safety;
new text end

new text begin (2) provide advice and coordination to state agencies as requested by the agencies;
new text end

new text begin (3) serve as a source of information and referral for the public, news media, and
others concerned with food safety; and
new text end

new text begin (4) make recommendations to Congress, the legislature, and others about appropriate
action to improve food safety in the state.
new text end

Sec. 34.

Minnesota Statutes 2006, section 32.21, subdivision 4, is amended to read:

Subd. 4.

Penalties.

(a) A person, other than a milk producer, who violates this
section is guilty of a misdemeanor or subject to a civil penalty up to $1,000.

(b) A milk producer may not change milk plants within 30 days, without permission
of the commissioner, after receiving notification from the commissioner under paragraph
(c) or (d) that the milk producer has violated this section.

(c) A milk producer who violates subdivision 3, clause (1), (2), (3), (4), or (5), is
subject to clauses (1) to (3) of this paragraph.

(1) Upon notification of the first violation in a 12-month period, the producer must
meet with the qualified dairy sanitarian to initiate corrective action within 30 days.

(2) Upon the second violation within a 12-month period, the producer is subject to
a civil penalty of $300. The commissioner shall notify the producer by certified mail
stating the penalty is payable in 30 days, the consequences of failure to pay the penalty,
and the consequences of future violations.

(3) Upon the third violation within a 12-month period, the producer is subject to
an additional civil penalty of $300 and possible revocation of the producer's permit or
certification. The commissioner shall notify the producer by certified mail that all civil
penalties owed must be paid within 30 days and that the commissioner is initiating
administrative procedures to revoke the producer's permit or certification to sell milk
for at least 30 days.

(d) The producer's shipment of milk must be immediately suspended if the producer
is identified as an individual source of milk containing residues causing a bulk load of
milk to test positive in violation of subdivision 3, clause (6) or (7). The Grade A or
manufacturing grade permit must be converted to temporary status for not more than
30 days and shipment may resume only after subsequent milk has been sampled by
the commissioner or the commissioner's agent and found to contain no residues above
established tolerances or safe levels.

The Grade A or manufacturing grade permit may be restored if the producer
completes the "Milk and Dairy Beef Residue Prevention Protocol" with a licensed
veterinarian, displays the signed certificate in the milkhouse, and sends verification to the
commissioner within the 30-day temporary permit status period. If the producer does
not comply within the temporary permit status period, the Grade A or manufacturing
grade permit must be suspended. A milk producer whose milk supply is in violation of
subdivision 3, clause (6) or (7), and has caused a bulk load to test positive is subject to
clauses (1) to (3) of this paragraph.

(1) For the first violation in a 12-month period, the penalty is the value of all milk on
the contaminated load plus any costs associated with the disposition of the contaminated
load. Future pickups are prohibited until subsequent testing reveals the milk is free of
drug residue. A farm inspection must be completed by a qualified dairy sanitarian and
the producer to determine the cause of the residue and actions required to prevent future
violations.

(2) For the second violation in a 12-month period, the penalty is the value of all
milk on the contaminated load plus any costs associated with the disposition of the
contaminated load. Future pickups are prohibited until subsequent testing reveals the milk
is free of drug residue. A farm inspection must be completed by deleted text begin the regulatory agency
or its agent deleted text end new text begin a qualified dairy sanitarian new text end to determine the cause of the residue and actions
required to prevent future violations.

(3) For the third new text begin or subsequent new text end violation in a 12-month period, the penalty is the value
of all milk on the contaminated load plus any costs associated with the disposition of the
contaminated load. Future pickups are prohibited until subsequent testing reveals the milk
is free of drug residue. The commissioner or the commissioner's agent shall also notify the
producer by certified mail that the commissioner is initiating administrative procedures to
revoke the producer's deleted text begin right deleted text end new text begin permit or certification new text end to sell milk for a minimum of 30 days.

(4) If a bulk load of milk tests negative for residues and there is a positive producer
sample on the load, no civil penalties may be assessed to the producer. The plant must
report the positive result within 24 hours and reject further milk shipments from that
producer until the producer's milk tests negative. A farm inspection must be completed
by deleted text begin the plant representative and the producer deleted text end new text begin a qualified dairy sanitarian new text end to determine the
cause of the residue and actions required to prevent future violations. The department
shall suspend the producer's permit and count the violation on the producer's record. The
Grade A or manufacturing grade permit must be converted to temporary status for not
more than 30 days during which time the producer must review the "Milk and Dairy Beef
Residue Prevention Protocol" with a licensed veterinarian, display the signed certificate
in the milkhouse, and send verification to the commissioner. If these conditions are met,
the Grade A or manufacturing grade permit must be reinstated. If the producer does not
comply within the temporary permit status period, the Grade A or manufacturing grade
permit must be suspended.

(e) A milk producer that has been certified as completing the "Milk and Dairy Beef
Residue Prevention Protocol" within 12 months of the first violation of subdivision 3,
clause (7), need only review the cause of the violation with a field service representative
within three days to maintain Grade A or manufacturing grade permit and shipping status
if all other requirements of this section are met.

(f) Civil penalties collected under this section must be deposited in the milk
inspection services account established in this chapter.

Sec. 35.

Minnesota Statutes 2006, section 32.212, is amended to read:

32.212 MILK HOUSES FOR BULK TANKS.

Any producer using a bulk tank for cooling and storage of milk to be used for
manufacturing purposes shall have an enclosed milk room which shall conform to the
standards provided by this section deleted text begin and section 32.213 deleted text end . The floor shall be constructed of
concrete or other impervious material, maintained in good repair, and graded to provide
proper drainage. The walls and ceilings of the room shall be sealed and constructed
of smooth easily cleaned material. All windows shall be screened and doors shall be
self-closing. It shall be well ventilated and must meet the following requirements:

(1) The bulk tank shall not be located over a drain or under a ventilator.

(2) The hose port shall be located in an exterior wall and fitted with a tight
self-closing door.

(3) Each milk room shall have an adequate supply of water readily accessible with
facilities for heating the water, to insure the cleaning and sanitizing of the bulk tank,
utensils and equipment and the keeping of the milk room clean.

(4) No lights shall be placed directly over the bulk tank.

(5) The bulk tank shall be properly located in the milk room for easy access to all
areas for cleaning and servicing.

(6) The milkhouse shall be used only for storage of milk, milk utensils, and supplies
incidental to the production of milk.

(7) This section deleted text begin and section 32.213 are deleted text end new text begin is new text end effective for all bulk tanks for milk
produced for manufacturing purposes.

(8) No milk processor shall buy milk from any producer of milk using a bulk
tank to be used for manufacturing purposes unless such producer has complied with the
provisions of this section.

(9) After July 1, 1965, no person shall install a bulk tank except in a milk room or
milkhouse which complies with the provisions of this section deleted text begin and section 32.213 deleted text end .

(10) The enforcement of this section deleted text begin and section 32.213 deleted text end shall be administered by
the Minnesota Department of Agriculture.

(11) Any person violating any provisions of this section deleted text begin and section 32.213 deleted text end shall be
punished by a fine of not more than $50.

Sec. 36.

Minnesota Statutes 2006, section 32.394, subdivision 4, is amended to read:

Subd. 4.

Rules.

The commissioner shall by rule deleted text begin promulgate deleted text end new text begin adopt new text end identity,
production new text begin , new text end and processing standards for milk, milk products new text begin , new text end and goat milk which are
intended to bear the Grade A label.

In the exercise of the authority to establish requirements for Grade A milk, milk
products, and goat milk, the commissioner adopts definitions, standards of identity, and
requirements for production and processing contained in the " deleted text begin 2001 deleted text end Grade A Pasteurized
Milk Ordinance" deleted text begin and the "1995 Grade A Condensed and Dry Milk Ordinance" deleted text end of the
United States Department of Health and Human Services, in a manner provided for and
not in conflict with law.

Sec. 37.

Minnesota Statutes 2006, section 32.415, is amended to read:

32.415 MILK FOR MANUFACTURING; QUALITY STANDARDS.

(a) The commissioner may adopt rules to provide uniform quality standards,
and producers of milk used for manufacturing purposes shall conform to the
standards contained in Subparts B, C, D, E, and F of the United States Department of
Agriculture Consumer and Marketing Service Recommended Requirements for Milk
for Manufacturing Purposes and its Production and Processing, deleted text begin as revised through June
17, 2002, deleted text end except that the commissioner shall develop methods by which producers can
comply with the standards without violation of religious beliefs.

(b) The commissioner shall perform or contract for the performance of the
inspections necessary to implement this section or shall certify dairy industry personnel to
perform the inspections.

(c) The commissioner and other employees of the department shall make every
reasonable effort to assist producers in achieving the milk quality standards at minimum
cost and to use the experience and expertise of the University of Minnesota and the
Agricultural Extension Service to assist producers in achieving the milk quality standards
in the most cost-effective manner.

(d) The commissioner shall consult with producers, processors, and others involved
in the dairy industry in order to prepare for the implementation of this section including
development of informational and educational materials, meetings, and other methods of
informing producers about the implementation of standards under this section.

Sec. 38.

new text begin [35.085] INDEMNITY FOR DESTROYED CATTLE.
new text end

new text begin (a) The board may pay indemnity to cattle owners who choose to euthanize cattle
that test suspect for bovine tuberculosis, if funds are available from appropriations for
the purpose and if the United States Department of Agriculture refuses to pay indemnity
for the animal. The board shall pay fair market value less salvage value as appraised by
a disinterested appraiser appointed by the board. The board's decision as to the amount
of indemnity is final. If the owner refuses the board's offer, the owner need not dispose
of the animal unless and until it later shows positive to any recognized test for bovine
tuberculosis.
new text end

new text begin (b) Indemnity payments made by the board are subject to the requirements of
chapter 336A.
new text end

Sec. 39.

new text begin [35.244] RULES FOR CONTROL OF BOVINE TUBERCULOSIS.
new text end

new text begin The board may adopt rules to provide for the control of tuberculosis in cattle. The
rules may include provisions for quarantine, tests, and such other measures as the board
deems appropriate. Federal regulations, as provided by Code of Federal Regulations, title
9, part 77, and the Bovine Tuberculosis Eradication Uniform Methods and Rules, are
incorporated as part of the rules in this state.
new text end

Sec. 40.

new text begin [38.171] CAMPGROUND DURING FAIRS.
new text end

new text begin Notwithstanding sections 327.14 to 327.28 or any rule adopted by the commissioner
of health, during a county fair or other fair requiring camping accommodations, a camping
area maintained by a county agricultural society must have a minimum area of 300 square
feet per site and the total number of sites must not exceed one site for every 300 square
feet of usable land area.
new text end

Sec. 41.

Minnesota Statutes 2006, section 41B.03, subdivision 1, is amended to read:

Subdivision 1.

Eligibility generally.

To be eligible for a program in sections
41B.01 to 41B.23:

(1) a borrower must be a resident of Minnesota or deleted text begin a domestic family farm
corporation or family farm partnership, as defined in deleted text end new text begin an entity eligible to own farm land
under new text end section 500.24, subdivision 2; and

(2) the borrower or one of the borrowers must be the principal operator of the
farm or, for a prospective homestead redemption borrower, must have at one time been
the principal operator of a farm.

Sec. 42.

Minnesota Statutes 2006, section 41B.043, subdivision 2, is amended to read:

Subd. 2.

Specifications.

deleted text begin No direct loan may exceed $35,000 or $125,000 for a loan
participation. deleted text end Each deleted text begin direct deleted text end loan deleted text begin and deleted text end participation must be secured by a mortgage on real
property and such other security as the authority may require.

Sec. 43.

Minnesota Statutes 2006, section 41B.043, subdivision 3, is amended to read:

Subd. 3.

Application and origination fee.

The authority may impose a reasonable
nonrefundable application fee for each application new text begin submitted new text end for a deleted text begin direct loan or deleted text end
participation deleted text begin and an origination fee for each direct loan deleted text end issued under the agricultural
improvement loan program. deleted text begin The origination fee initially shall be set at 1.5 percent and deleted text end The
application fee deleted text begin at deleted text end new text begin is initially new text end $50. The authority may review the fees annually and make
adjustments as necessary. The fees must be deposited in the state treasury and credited
to an account in the special revenue fund. Money in this account is appropriated to the
commissioner for administrative expenses of the agricultural improvement loan program.

Sec. 44.

Minnesota Statutes 2006, section 41B.043, subdivision 4, is amended to read:

Subd. 4.

Interest rate.

The interest rate per annum on the agricultural improvement
deleted text begin direct loan or deleted text end participation must be the rate of interest determined by the authority to be
necessary to provide for the timely payment of principal and interest when due on bonds
or other obligations of the authority issued under chapter 41B to provide financing for
deleted text begin direct loans and deleted text end participations made under the agricultural improvement loan program,
and to provide for reasonable and necessary costs of issuing, carrying, administering,
and securing the bonds or notes and to pay the costs incurred and to be incurred by the
authority in the implementation of the agricultural improvement loan program.

Sec. 45.

Minnesota Statutes 2006, section 41B.046, subdivision 4, is amended to read:

Subd. 4.

Eligibility.

To be eligible for this program a borrower must:

(1) deleted text begin be a resident of Minnesota or a domestic family farm corporation as defined in
section 500.24, subdivision 2 deleted text end new text begin meet the requirements of section 41B.03, subdivision 1 new text end ;

(2) be a grower of the agricultural product which is to be processed by an agricultural
product processing facility;

(3) demonstrate an ability to repay the loan; and

(4) meet any other requirements which the authority may impose by rule.

Sec. 46.

Minnesota Statutes 2006, section 41B.047, is amended to read:

41B.047 DISASTER RECOVERY LOAN PROGRAM.

Subdivision 1.

Establishment.

The authority shall establish and implement a
disaster recovery loan program to help farmers new text begin :
new text end

new text begin (1) new text end clean up, repair, or replace farm structures and septic and water systems, as well
as deleted text begin replacement of deleted text end new text begin replace new text end seed, other crop inputs, feed, and livestock new text begin , when damaged
by high winds, hail, tornado, or flood; or
new text end

new text begin (2) purchase watering systems, irrigation systems, and other drought mitigation
systems and practices when drought is the cause of the purchase new text end .

Subd. 3.

Eligibility.

To be eligible for this program, a borrower must:

(1) deleted text begin be a resident of this state or a domestic family farm corporation or family farm
partnership as defined in section 500.24, subdivision 2 deleted text end new text begin meet the requirements of section
41B.03, subdivision 1 new text end ;

(2) certify that the damage or loss was sustained within a county that was the subject
of a state or federal disaster declaration;

(3) demonstrate an ability to repay the loan;

(4) have a total net worth, including assets and liabilities of the borrower's spouse
and dependents, of less than deleted text begin $400,000 deleted text end new text begin $660,000 in 2004 and an amount in subsequent
years which is adjusted for inflation by multiplying that amount by the cumulative
inflation rate as determined by the Consumer Price Index new text end ; and

(5) have received at least 50 percent of average annual gross income from farming
for the past three years.

Subd. 4.

Loans.

(a) The authority may participate in a disaster recovery loan with
an eligible lender to a farmer who is eligible under subdivision 3. Participation is limited
to 45 percent of the principal amount of the loan or $50,000, whichever is less. The
interest rates and repayment terms of the authority's participation interest may differ from
the interest rates and repayment terms of the lender's retained portion of the loan, but the
authority's interest rate must not exceed four percent.

(b) Standards for loan amortization shall be set by the Rural Finance Authority
not to exceed ten years.

(c) Security for the disaster recovery loans must be a personal note executed by the
borrower and whatever other security is required by the eligible lender or the authority.

(d) The authority may impose a reasonable nonrefundable application fee for a
disaster recovery loan. The authority may review the fee annually and make adjustments
as necessary. The application fee is initially $50. Application fees received by the
authority must be deposited in the deleted text begin disaster recovery revolving fund deleted text end new text begin revolving loan account
established under section 41B.06 new text end .

(e) Disaster recovery loans under this program will be made using money in the
deleted text begin disaster recovery revolving fund established under subdivision 2 deleted text end new text begin revolving loan account
established under section 41B.06 new text end .

new text begin (f) Repayments of financial assistance under this section, including principal and
interest, must be deposited into the revolving loan account established under section
41B.06.
new text end

Sec. 47.

Minnesota Statutes 2006, section 41B.055, is amended to read:

41B.055 LIVESTOCK EQUIPMENT PILOT LOAN PROGRAM.

Subdivision 1.

Establishment.

The authority must establish and implement
a livestock equipment pilot loan program to help finance the deleted text begin first deleted text end purchase of
livestock-related equipment and make livestock facilities improvements.

Subd. 2.

Eligibility.

Notwithstanding section 41B.03, to be eligible for this program
a borrower must:

(1) be a resident of Minnesota or general partnership or a family farm corporation,
authorized farm corporation, family farm partnership, or authorized farm partnership as
defined in section 500.24, subdivision 2;

(2) be the principal operator of a livestock farm;

(3) have a total net worth, including assets and liabilities of the borrower's spouse
and dependents, no greater than the amount stipulated in section 41B.03, subdivision 3;

(4) demonstrate an ability to repay the loan; and

(5) hold an appropriate feedlot registration or be using the loan under this program
to meet registration requirements. deleted text begin In addition to the requirements in clauses (1) to (5),
preference must be given to applicants who have farmed less than ten years as evidenced
by their filing of schedule F in their federal tax returns.
deleted text end

Subd. 3.

Loans.

(a) The authority may participate in a livestock equipment loan
equal to 90 percent of the purchased equipment value with an eligible lender to a farmer
who is eligible under subdivision 2. Participation is limited to 45 percent of the principal
amount of the loan or $40,000, whichever is less. The interest rates and repayment terms
of the authority's participation interest may differ from the interest rates and repayment
terms of the lender's retained portion of the loan, but the authority's interest rate must
not exceed three percent. The authority may review the interest annually and make
adjustments as necessary.

(b) Standards for loan amortization must be set by the Rural Finance Authority and
must not exceed deleted text begin seven deleted text end new text begin ten new text end years.

(c) Security for a livestock equipment loan must be a personal note executed by the
borrower and whatever other security is required by the eligible lender or the authority.

(d) Refinancing of existing debt is not an eligible purpose.

(e) The authority may impose a reasonable, nonrefundable application fee for
a livestock equipment loan. The authority may review the fee annually and make
adjustments as necessary. The initial application fee is $50. Application fees received by
the authority must be deposited in the revolving loan account established in section 41B.06.

(f) Loans under this program must be made using money in the revolving loan
account established in section 41B.06.

Subd. 4.

Eligible expenditures.

Money may be used for loans for the acquisition of
equipment for animal housing, confinement, animal feeding, milk production, and waste
management, including the following, if related to animal husbandry:

(1) fences;

(2) watering facilities;

(3) feed storage and handling equipment;

(4) milking parlors;

(5) milking equipment;

(6) scales;

(7) milk storage and cooling facilities;

(8) manure pumping and storage facilities; deleted text begin and
deleted text end

(9) capital investment in pasture deleted text begin . deleted text end new text begin ;
new text end

new text begin (10) hoop barns;
new text end

new text begin (11) portable structures;
new text end

new text begin (12) hay and forage equipment; and
new text end

new text begin (13) related structural work for the installation of equipment.
new text end

Sec. 48.

Minnesota Statutes 2006, section 41B.06, is amended to read:

41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.

There is established in the rural finance administration fund a Rural Finance
Authority revolving loan account that is eligible to receive appropriations and the transfer
of loan funds from other programs. All repayments of financial assistance granted from
this account, including principal and interest, must be deposited into this account. Interest
earned on money in the account accrues to the account, and the money in the account
is appropriated to the commissioner of agriculture for purposes of the Rural Finance
Authority livestock equipment, methane digester, new text begin disaster recovery, new text end and value-added
agricultural product loan programs, including costs incurred by the authority to establish
and administer the programs.

Sec. 49.

Minnesota Statutes 2006, section 41C.05, subdivision 2, is amended to read:

Subd. 2.

Eligibility; beginning farmers.

The authority shall provide in the
agricultural development bond beginning farmer and agricultural business enterprise loan
program that a mortgage or a contract on behalf of a beginning farmer may be provided if
the borrower qualifies under authority rules and under federal tax law governing qualified
small issue bonds and must:

(1) be a resident of Minnesota;

(2) have sufficient education, training, or experience in the type of farming for
which the loan is desired;

(3) have a low or moderate net worth, as defined in section 41C.02, subdivision 12;

(4) certify that the agricultural land to be purchased will be used by the borrower
for agricultural purposes;

(5) certify that farming will be the principal occupation of an individual borrower;

(6) agree to participate in a farm management program approved by the
commissioner of agriculture for at least the first deleted text begin five deleted text end new text begin three new text end years of the loan, if an approved
program is available within 45 miles from the borrower's residence. The commissioner
may waive this requirement for any of the programs administered by the authority if the
participant requests a waiver and provides justification; and

(7) agree to file an approved soil and water conservation plan with the Soil
Conservation Service office in the county where the land is located.

Sec. 50.

Minnesota Statutes 2006, section 116.0714, is amended to read:

116.0714 NEW OPEN AIR SWINE BASINS.

deleted text begin After May 18, 2002, deleted text end The commissioner of the Pollution Control Agency or a county
board shall not approve any permits for the construction of new open air swine basins,
except that existing facilities may use one basin of less than 1,000,000 gallons as part
of a permitted waste treatment program for resolving pollution problems or to allow
conversion of an existing basin of less than 1,000,000 gallons to a different animal type,
provided all standards are met. This section expires June 30, deleted text begin 2007 deleted text end new text begin 2012 new text end .

Sec. 51.

Minnesota Statutes 2006, section 156.001, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Animal chiropractic. new text end

new text begin "Animal chiropractic" means a system of treating
diseases by manipulation of the vertebral column.
new text end

Sec. 52.

Minnesota Statutes 2006, section 156.001, is amended by adding a subdivision
to read:

new text begin Subd. 3b. new text end

new text begin Artificial insemination. new text end

new text begin "Artificial insemination" means the implanting
of live spermatozoa into a female animal.
new text end

Sec. 53.

Minnesota Statutes 2006, section 156.001, is amended by adding a subdivision
to read:

new text begin Subd. 6b. new text end

new text begin Farriery. new text end

new text begin "Farriery" means techniques used by a farrier or blacksmith
including trimming hooves and making, fitting, and remodeling horseshoes.
new text end

Sec. 54.

Minnesota Statutes 2006, section 156.001, is amended by adding a subdivision
to read:

new text begin Subd. 8a. new text end

new text begin Massage. new text end

new text begin "Massage" means systematic therapeutic stroking or kneading
of the body or a specific body part of an animal to improve circulation and muscle
function, release scar tissue, or produce relaxation.
new text end

Sec. 55.

Minnesota Statutes 2006, section 156.001, is amended by adding a subdivision
to read:

new text begin Subd. 10a. new text end

new text begin Teeth floating. new text end

new text begin "Teeth floating" for horses and other equine animals
means:
new text end

new text begin (1) removal of enamel points from teeth with hand-held, nonmotorized,
non-air-powered files or rasps;
new text end

new text begin (2) reestablishing normal molar table angles and freeing up lateral excursion and
other normal movements of the mandible;
new text end

new text begin (3) shaping the lingual aspect of the lower arcades and the buccal aspect of the upper
arcades to a rounded smooth surface; and
new text end

new text begin (4) removing points from the buccal aspect of the upper arcade and the lingual
aspect of the lower arcade.
new text end

Sec. 56.

Minnesota Statutes 2006, section 156.12, subdivision 1, is amended to read:

Subdivision 1.

Practice.

new text begin (a) new text end The practice of veterinary medicine, as used in this
chapter, shall mean the diagnosis, treatment, correction, relief, or prevention of animal
disease, deformity, defect, injury, or other physical or mental conditions; the performance
of obstetrical procedures for animals, including determination of pregnancy and correction
of sterility or infertility; and the rendering of advice or recommendations with regard to
any of the above. The practice of veterinary medicine shall include but not be limited to
the prescription or administration of any drug, medicine, biologic, apparatus, application,
anesthetic, or other therapeutic or diagnostic substance or technique.

new text begin (b) new text end The practice new text begin of veterinary medicine new text end shall not be construed to include the
dehorning of cattle and goats deleted text begin or deleted text end new text begin , new text end the castration of cattle, swine, goats, and sheep, deleted text begin or deleted text end the
docking of sheep new text begin , artificial insemination, teeth floating, farriery, animal chiropractic,
massage, or other treatments of similar or less risk or requiring similar or less formal
veterinary education employed to maintain domestic animals in good health new text end .

Sec. 57.

Minnesota Statutes 2006, section 343.10, is amended to read:

343.10 COUNTY AND DISTRICT SOCIETIES.

A county society for the prevention of cruelty to animals may be formed in any
county and a district society for the prevention of cruelty to animals may be formed in any
group of two or more contiguous or noncontiguous counties or parts of counties by not
less than seven incorporators. County and district societies shall be created as corporations
under chapter 317A and as provided in the bylaws of the state federation. new text begin No county or
district society may conduct investigations or assist in prosecutions outside the boundaries
of the county or counties included in the county or district society.
new text end

Sec. 58.

Minnesota Statutes 2006, section 469.310, is amended by adding a subdivision
to read:

new text begin Subd. 11a. new text end

new text begin Qualified farm. new text end

new text begin "Qualified farm" means a person actively engaged in
farming, that invests in an agricultural processing facility on the farm, and that:
new text end

new text begin (1) increases employment on the farm by a minimum of 25 percent of full-time
employment in the first full year of operation. The employment may include family
members;
new text end

new text begin (2) makes an investment equal to at least ten percent of the previous years' gross
revenue in the agricultural processing facility; and
new text end

new text begin (3) enters into a binding written agreement with the commissioner that:
new text end

new text begin (i) pledges the agricultural processing facility will meet the requirements of clauses
(1) and (2); and
new text end

new text begin (ii) provides the repayment of all tax benefits enumerated under section 469.315
to the business under the procedures in section 469.319, if the requirements of clauses
(1) and (2) are not met for the taxable year or for taxes payable during the year in which
the requirements are not met; and
new text end

new text begin (iii) contains any other terms the commissioner deems appropriate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 59.

new text begin [469.3141] DESIGNATION OF FAMILY AGRICULTURAL
REVITALIZATION ZONES.
new text end

new text begin Subdivision 1. new text end

new text begin Authority to designate. new text end

new text begin In addition to the designations authorized
under section 469.314, the commissioner, in consultation with the commissioner of
revenue, may designate one or more family agricultural revitalization zones for on-farm
agricultural processing facility projects. In designating a zone, the commissioner shall
consider the need for tax incentives to make the project feasible and the likelihood
of success of the project. The commissioner may designate a zone at any time upon
application for a qualifying project.
new text end

new text begin Subd. 2. new text end

new text begin Qualifying projects. new text end

new text begin A qualifying project is limited to the portion of a
qualified farm that consists of the agricultural processing facility. The tax incentives under
section 469.315 do not extend to the rest of the farm.
new text end

new text begin Subd. 3. new text end

new text begin Application of JOBZ rules. new text end

new text begin Except as otherwise specifically provided
in this section, sections 469.310 to 469.320 apply to family agricultural revitalization
zones designated under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 60. new text begin COMMISSIONER TO EVALUATE AND REPORT.
new text end

new text begin By March 1, 2008, the commissioner of agriculture in consultation with the
commissioner of health and the University of Minnesota shall evaluate the potential
hazards posed by plants to retail consumers and livestock, and report the findings to
the standing committees of the senate and the house of representatives with jurisdiction
over agriculture policy.
new text end

Sec. 61. new text begin WASTE PESTICIDE TASK FORCE, REPORT.
new text end

new text begin The commissioner of agriculture shall convene a waste pesticide task force to review
all aspects of the waste pesticide collection issue and develop a comprehensive approach
to equitably and efficiently collect waste pesticides statewide. The task force shall include
a representative of each of the following organizations: the house of representatives,
as appointed by the chair of the house committee with jurisdiction over agriculture
finance; the senate, as appointed by the chair of the senate committee with jurisdiction
over agriculture finance; the departments of agriculture; the department of pollution
control; the Minnesota Solid Waste Administrators Association; the metropolitan Solid
Waste Management Coordinating Board; the Association of Minnesota Counties; the
Minnesota Farm Bureau; and the Minnesota Farmers Union. The task force must have
three additional members representing Minnesota pesticide registrants, distributors, and
retailers, respectively, as appointed by the commissioner. Public members of the task force
must serve without compensation or reimbursement of personal expenses. No later than
January 5, 2008, the commissioner of agriculture shall present the task force's findings
and specific recommendations to the house and senate committees with jurisdiction over
agriculture finance.
new text end

Sec. 62. new text begin WASTE PESTICIDE COLLECTION, DISPOSAL.
new text end

new text begin Notwithstanding section 18B.26, subdivision 2, the commissioner of agriculture
shall spend at least $600,000 in fiscal year 2008 from the pesticide regulatory account
for the purposes of the waste pesticide collection program. During fiscal year 2008, the
commissioner shall provide an opportunity for residents to dispose of waste residential
and agricultural pesticides in each county where the commissioner has not provided an
opportunity for persons to dispose of waste pesticides within county boundaries during the
previous two fiscal years.
new text end

Sec. 63. new text begin RESIDENTIAL ANTIMICROBIAL PESTICIDE APPLICATOR
LICENSE STUDY.
new text end

new text begin (a) The commissioners of agriculture and health must study the development
and implementation of a new category of license for commercial pesticide applicators
who apply antimicrobial pesticides for hire to mitigate or remediate mold in homes,
apartments, or other residences. The commissioners must seek and obtain consultation
with representatives of the University of Minnesota qualified in mold and other fungal
microbe pest control. They shall prepare a report which must include:
new text end

new text begin (1) a discussion of existing federal and state laws and rules, if any, that govern
commercial residential antimicrobial pesticide mold control applicators;
new text end

new text begin (2) a literature review on the need for, and efficacy of, antimicrobial pesticides used
in residential settings for mold control and any potential dangers posed by the residential
application of these products, particularly to young children and other sensitive persons;
new text end

new text begin (3) a survey of the law and process, if any, for licensing commercial residential
antimicrobial pesticide mold control applicators in the rest of the United States; and
new text end

new text begin (4) recommended procedures for licensing prospective residential antimicrobial
pesticide mold control applicators in Minnesota, highlighting provisions that test the
applicant's understanding of the efficacy of antimicrobial pesticides and methods for
mitigating any potential dangers discovered in the review required in clause (2).
new text end

new text begin (b) No later than December 1, 2007, the commissioners shall report the results of
the study described in paragraph (a) and an implementation plan to the house and senate
committees with jurisdiction over agricultural policy and finance and environmental
health.
new text end

Sec. 64. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2006, sections 17.109; 18B.315; 18C.425, subdivision 5;
32.213; 35.08; 35.09; 35.10; 35.11; 35.12; 41B.043, subdivision 1a; and 156.075, new text end new text begin are
repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 1705.0840; 1705.0850; 1705.0860; 1705.0870;
1705.0880; 1705.0890; 1705.0900; 1705.0910; 1705.0920; 1705.0930; 1705.0940;
1705.0950; 1705.0960; 1705.0970; 1705.0980; 1705.0990; 1705.1000; 1705.1010;
1705.1020; 1705.1030; 1705.1040; 1705.1050; 1705.1060; 1705.1070; 1705.1080;
1705.1086; 1705.1087; and 1705.1088, new text end new text begin are repealed.
new text end

ARTICLE 3

BIOENERGY POLICY

Section 1.

new text begin [41A.10] NEXTGEN ENERGY.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin It is the goal of the state through the Department of
Agriculture to research and develop energy sources to displace fossil fuels with renewable
technology.
new text end

new text begin Subd. 2. new text end

new text begin NextGen Energy Board. new text end

new text begin There is created a NextGen Energy Board
consisting of the commissioners of agriculture, commerce, natural resources, the Pollution
Control Agency, and employment and economic development; the chairs of the house and
senate committees with jurisdiction over energy finance; the chairs of the house and
senate committees with jurisdiction over agriculture finance; one member of the second
largest political party in the house, as appointed by the chairs of the house committees
with jurisdiction over agriculture finance and energy finance; one member of the second
largest political party in the senate, as appointed by the chairs of the senate committees
with jurisdiction over agriculture finance and energy finance; and the executive director
of the Agricultural Utilization Research Institute. In addition, the governor shall appoint
six members: two representing statewide agriculture organizations; two representing
statewide environment and natural resource conservation organizations; one representing
the University of Minnesota; and one representing the Minnesota State Colleges and
Universities system.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The board shall research and report to the commissioner of
agriculture and to the legislature recommendations as to how the state can invest its
resources to most efficiently achieve energy independence, agricultural and natural
resources sustainability, and rural economic vitality. The board shall:
new text end

new text begin (1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen,
methanol, diesel, and ethanol within Minnesota;
new text end

new text begin (2) develop equity grant programs to assist locally owned facilities;
new text end

new text begin (3) study the proper role of the state in creating financing and investing and
providing incentives;
new text end

new text begin (4) evaluate how state and federal programs, including the Farm Bill, can best work
together and leverage resources; and
new text end

new text begin (5) report to the legislature before February 1 each year with recommendations as
to appropriations and results of past actions and projects.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner's duties. new text end

new text begin The commissioner of agriculture shall administer
this section.
new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2011.
new text end

Sec. 2.

new text begin [41A.11] TWENTY-FIVE BY TWENTY-FIVE GOAL.
new text end

new text begin It is the goal of the state that no later than January 1, 2025, the state's agricultural,
forestry, and working land should provide from renewable resources not less than 25
percent of the total energy consumed in this state while continuing to produce safe,
abundant, and affordable food, feed, and fiber.
new text end

Sec. 3.

Minnesota Statutes 2006, section 239.7911, subdivision 1, is amended to read:

Subdivision 1.

Petroleum replacement goal.

The new text begin tiered new text end petroleum replacement
goal of the state of Minnesota is that new text begin :
new text end

new text begin (1) new text end at least 20 percent of the liquid fuel sold in the state is derived from renewable
sources by December 31, 2015 new text begin ; and
new text end

new text begin (2) at least 25 percent of the liquid fuel sold in the state is derived from renewable
sources by December 31, 2025 new text end .

ARTICLE 4

VETERANS AFFAIRS POLICY

Section 1.

new text begin [192.382] HONOR GUARDS.
new text end

new text begin Upon the death of any person who has honorably served six or more years or is
in active service in the Minnesota National Guard, the adjutant general may activate
members to serve as an honor guard at the funeral. Members activated for service as honor
guards must be paid at the rate provided in section 192.49, subdivision 1 or 2.
new text end

Sec. 2.

new text begin [197.08] HEALTH SCREENING TEST FOR EXPOSURE TO
DEPLETED URANIUM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following definitions
apply.
new text end

new text begin (b) "Commissioner" means the commissioner of veterans affairs.
new text end

new text begin (c) "Depleted uranium" means uranium containing less Uranium 235 than the
naturally occurring distribution of uranium isotopes.
new text end

new text begin (d) "Eligible person" means a veteran or current member of the United States armed
forces, including the Minnesota National Guard and other reserves, who has served
in active military service as defined in section 190.05, subdivision 5, at any time since
August 2, 1990, and who is a Minnesota resident.
new text end

new text begin (e) "Veteran" has the meaning given in section 197.447.
new text end

new text begin Subd. 2. new text end

new text begin Health screening test. new text end

new text begin (a) The following eligible persons have a right to a
best practice health screening test for exposure to depleted uranium:
new text end

new text begin (1) those who have been assigned a risk level I or II for depleted uranium exposure
by the person's branch of service;
new text end

new text begin (2) those who can provide to the satisfaction of the commissioner evidence of
exposure equivalent to an assigned risk of level I or II; and
new text end

new text begin (3) those who provide evidence to the satisfaction of the commissioner of a medical
diagnosis of serious debilitating symptoms of nonspecific origin following service in an
area where depleted uranium ammunition was expended.
new text end

new text begin (b) The commissioner, in consultation with the commissioner of health, must
select a test that utilizes a bioassay procedure involving sensitive methods capable of
detecting depleted uranium at low levels and the use of equipment with the capacity to
discriminate between different radioisotopes in naturally occurring levels of uranium and
the characteristic ratio and marker for depleted uranium.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner to provide for test. new text end

new text begin The commissioner shall establish a
method for administering the health screening test described in subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Notification of availability to those eligible. new text end

new text begin The commissioner must
make reasonable efforts to inform all eligible persons of their potential right to the health
screening test described in subdivision 2.
new text end

new text begin Subd. 5. new text end

new text begin Random sample study. new text end

new text begin (a) In addition to the testing required under
subdivision 2, the commissioner shall select a random sample containing ten percent of
the eligible members who as Minnesota residents have served for a period of 30 days
or more within Iraq or Afghanistan in support of contingency operations for Operation
Iraqi Freedom or Operation Enduring Freedom. Each eligible member who is selected
into the sample by the commissioner has the right to the same health screening test
as provided under subdivision 2. The commissioner must make a reasonable effort to
inform each selected person of that right, and must provide the person with a reasonable
opportunity to take the health screening test. The commissioner, acting in accordance with
the requirements of chapter 13, the Government Data Practices Act, must statistically
tabulate the results of the screening tests for the selected sample and upon request must
report those results to the chairs and ranking minority members of the senate and house of
representatives committees responsible for military and veterans affairs.
new text end

new text begin (b) The adjutant general of the Minnesota National Guard, and the senior officer of
each military reserve organization located within Minnesota shall assist the commissioner
with the sampling task by providing to the commissioner in a timely manner a complete
listing of the names, unit designations, and most recent mailing addresses of their current
and previous members who as Minnesota residents have served for a period of 30 days
or more in active military service within Iraq or Afghanistan in support of contingency
operations for Operation Iraqi Freedom or Operation Enduring Freedom.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 3.

new text begin [197.231] HONOR GUARDS.
new text end

new text begin The commissioner of veterans affairs shall pay, within available funds and upon
request by a local unit of a congressionally chartered veterans organization or its auxiliary,
up to $50 to the local unit for each time that local unit provides an honor guard detail at
the funeral of a deceased veteran. The commissioner may give priority to local units that
do not have charitable gambling operations. If the local unit provides a student to play
"Taps," the local unit may pay some or all of the $50 to the student.
new text end

Sec. 4.

Minnesota Statutes 2006, section 197.75, is amended to read:

197.75 EDUCATIONAL ASSISTANCE, WAR deleted text begin ORPHANS deleted text end new text begin SURVIVORS new text end AND
VETERANS.

Subdivision 1.

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this
section.
new text end

new text begin (b) "Commissioner" means the commissioner of veterans affairs.
new text end

new text begin (c) "Deceased veteran" means a veteran who was a Minnesota resident within six
months of the time of the person's entry into the United States armed forces and who has
died as a result of that service, as determined by the United States Veterans Administration.
new text end

new text begin (d) "Eligible child" means a person who:
new text end

new text begin (1) is the natural or adopted son or daughter of a deceased veteran; and
new text end

new text begin (2) is a student making satisfactory academic progress at an eligible institution
of higher education.
new text end

new text begin (e) "Eligible institution" means a postsecondary educational institution located in
this state that either (1) is operated by this state, or (2) is operated publicly or privately
and, as determined by the office, maintains academic standards substantially equivalent
to those of comparable institutions operated in this state.
new text end

new text begin (f) "Eligible spouse" means the surviving spouse of a deceased veteran.
new text end

new text begin (g) "Eligible veteran" means a veteran who:
new text end

new text begin (1) is a student making satisfactory academic progress at an eligible institution
of higher education;
new text end

new text begin (2) had Minnesota as the person's state of residence at the time of the person's
enlistment or any reenlistment into the United States armed forces, as shown by the
person's federal form DD-214 or other official documentation to the satisfaction of the
commissioner;
new text end

new text begin (3) except for benefits under this section, has no remaining military or veteran-related
educational assistance benefits for which the person may have been entitled; and
new text end

new text begin (4) while using the educational assistance authorized in this section, remains a
resident student as defined in section 136A.101, subdivision 8.
new text end

new text begin (h) "Satisfactory academic progress" has the meaning given in section 136A.101,
subdivision 10.
new text end

new text begin (i) "Student" has the meaning given in section 136A.101, subdivision 7.
new text end

new text begin (j) "Veteran" has the meaning given in section 197.447.
new text end

new text begin Subd. 2. new text end

Benefits; eligibility.

new text begin (a) new text end The commissioner of veterans affairs shall spend a
biennial appropriation deleted text begin for tuition of veterans, and for tuition, fees, board, room, books, and
supplies of the children of veterans who have died as a result of their service in the armed
forces of the United States as determined by the United States Veterans Administration
or other instrumentality of the United States, in the University of Minnesota, a state
university, a community college, a technical college, or any other university of higher
learning within the state accredited by the North Central Association of Colleges and
Secondary Schools, a law college approved by the Supreme Court, a nursing school
approved by the state Board of Nursing, or in a trade, business, or vocational school in
the state approved by the state Department of Education, or in a theological seminary, for
any course which such veteran or child may elect. Not more than $750 shall be expended
for the benefit of any individual veteran, and not more than $750 in any fiscal year shall
be expended for the benefit of any child under this section. No child of any veteran
shall make application for the benefits provided in this section unless the child resided
in Minnesota for at least two years immediately prior to the date of the application. deleted text end new text begin to
provide an educational assistance stipend of $750 each year for each eligible child and
each eligible spouse, and a single payment of $750 for each eligible veteran. This stipend
is not available for any person who has attained a bachelor's or equivalent degree.
new text end

deleted text begin Children of veterans eligible for benefits according to this section deleted text end new text begin (b) Each eligible
child and each eligible spouse new text end shall be admitted to deleted text begin state institutions of university grade deleted text end
new text begin any Minnesota public eligible institution new text end free of tuition until deleted text begin they receive deleted text end new text begin the person has
attained new text end a deleted text begin bachelors deleted text end new text begin bachelor's new text end or equivalent degree.

new text begin (c) new text end Payments of benefits new text begin authorized under this section new text end shall be made directly to the
deleted text begin institution in which the course of instruction is given deleted text end new text begin participating eligible institutions new text end or to
deleted text begin the individual on forms prescribed deleted text end new text begin eligible individuals, as determined new text end by the commissioner.

deleted text begin Subd. 2. deleted text end

deleted text begin Limitations. deleted text end

deleted text begin The benefits in subdivision 1 are not available to a veteran
who is entitled to the same or similar benefits under a law or regulation of the United
States, except that a veteran who has been eligible for and has used up the benefits the
veteran is entitled to under the laws of the United States is entitled to the benefits provided
for by subdivision 1.
deleted text end

Subd. 3.

Proof of eligibility.

Approval for benefits under this section shall require
submission of the following evidence: application, proof of military service, new text begin and where
applicable, new text end proof of residency and deleted text begin where applicable deleted text end , a statement from the United States
Veterans Administration that the veteran has exhausted entitlement to federal educational
benefits through use thereof or that the veteran died of service connected disabilities.
Upon submission of satisfactory proof of eligibility, benefits shall be provided from the
date of application and notification of approval shall be sent to the educational institution
and applicant.

Subd. 4.

Reimbursement form.

deleted text begin Reimbursement to such institution or eligible
individual authorized under subdivision 1 shall be on forms prescribed by deleted text end The
commissioner new text begin shall establish policies and procedures for determining eligibility and
payment under this section new text end .

Subd. 5.

deleted text begin Definition of veteran deleted text end new text begin Participation by eligible institutions new text end .

deleted text begin The word
"veteran" as used in this section shall have the same meaning as defined in section 197.447
except that it shall include service persons that died while on active duty. deleted text end new text begin (a) Each
Minnesota public postsecondary institution must continue to participate in the educational
assistance program authorized in this section during both peacetime and times of war.
new text end

new text begin (b) Any participating eligible institution not described in paragraph (a) may suspend
or terminate its participation in the program at the end of any academic semester or other
academic term.
new text end

deleted text begin Subd. 6. deleted text end

deleted text begin Residence required. deleted text end

deleted text begin Veterans under this section shall have been a resident
of the state of Minnesota at the time of induction into the armed forces and six months
immediately preceding the induction.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, and applies to
applications for coursework taken on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2006, section 198.002, subdivision 2, is amended to read:

Subd. 2.

Membership.

The board consists of nine voting members appointed by the
governor with the advice and consent of the senate. The members of the board shall fairly
represent the geographic areas of the state. The members are:

(1) a chair, designated by the governor;

(2) three public members experienced in policy formulation with professional
experience in health care delivery; and

(3) new text begin at least new text end five members experienced in policy formulation with professional
experience in health care delivery who are members of congressionally chartered veterans
organizations or their auxiliaries that have a statewide organizational structure and state
level officers in Minnesota.

The commissioner of veterans affairs shall serve as an ex officio, nonvoting member
of the board. From each house of the legislature, the chair of the committee that deals
with veterans affairs new text begin or the chair's designee new text end shall serve as an ex officio, nonvoting member
deleted text begin if that person is a veteran deleted text end new text begin of the board new text end .

Sec. 6.

Minnesota Statutes 2006, section 198.004, subdivision 1, is amended to read:

Subdivision 1.

Appointment.

new text begin (a) new text end The board shall appoint an executive director. The
executive director shall serve in the unclassified service at the pleasure of the board. The
executive director must be a resident of the state of Minnesota, a citizen of the United
States deleted text begin , deleted text end and new text begin , except as provided in paragraph (b), new text end a veteran as that term is defined in section
197.447. The executive director shall serve as secretary of the board.

new text begin (b) When selecting an executive director, the board shall give preference to qualified
applicants who are veterans by initially placing only the names of qualified applicants who
are veterans on the selection list for final consideration, and only if the list contains fewer
than three qualified applicants who are veterans shall the names of qualified applicants
who are not veterans be added to the list. The board shall then select the most qualified
applicant from the list. If at any point in the selection process the board concludes that
no applicant is sufficiently qualified for the director position, the board may reopen the
application process.
new text end

Sec. 7. new text begin PSYCHOLOGICAL COUNSELING SERVICES REPORT.
new text end

new text begin By November 1, 2007, the commissioner of veterans affairs and the adjutant general
of the National Guard, in consultation with relevant policy personnel and professional
staff of the Minnesota Veterans Homes Board and the United States Department of
Veterans Affairs, shall jointly report to the chair and ranking minority member of each
committee in the senate and house of representatives with jurisdiction over the policy or
finance of veterans affairs and military affairs regarding the psychological status and
needs of soldiers and veterans returning to Minnesota after having served in support of
contingency operations for Operation Enduring Freedom and Operation Iraqi Freedom.
new text end

new text begin The report must provide the best relevant insights into and advice concerning how
to most effectively provide the psychological support services determined to be needed
by those soldiers and veterans. The report shall also provide an overview and discussion
of the types of federal, state, and local mental health resources available to soldiers and
veterans throughout the state, with particular emphasis on the role and capabilities of
the mental health facility under planning by the Minnesota Veterans Homes Board in
Kandiyohi County.
new text end

ARTICLE 5

MILITARY AFFAIRS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2008" and "2009" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2008, or
June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
year 2009. "The biennium" is fiscal years 2008 and 2009.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2008 new text end		new text begin 2009 new text end

Sec. 2. new text begin MILITARY AFFAIRS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 21,814,000 new text end

new text begin $ new text end

new text begin 20,123,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 21,476,000 new text end	new text begin 19,785,000 new text end
new text begin Special Revenue new text end	new text begin 338,000 new text end	new text begin 338,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Maintenance of Training Facilities new text end

new text begin 7,504,000 new text end

new text begin 7,448,000 new text end

new text begin $185,000 the first year is to pay special
assessments levied against state property.
This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end new text begin General Support new text end

new text begin 4,101,000 new text end

new text begin 2,464,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,763,000 new text end	new text begin 2,126,000 new text end
new text begin Special Revenue new text end	new text begin 338,000 new text end	new text begin 338,000 new text end

new text begin (a) $1,500,000 the first year is for the
Minnesota National Guard reintegration
program. This appropriation is available
until spent.
new text end

new text begin (b) $275,000 the first year and $285,000 the
second year are for additional staffing.
new text end

new text begin (c) $338,000 each year is from the account
in the special revenue fund established in
Minnesota Statutes, section 190.19, for
grants under that section.
new text end

new text begin (d) $150,000 the first year is for predesign
and design of a new facility for the Starbase
Minnesota program. This appropriation is
available until spent.
new text end

new text begin (e) $25,000 the first year is for a longitudinal
study measuring improvement in academic
achievement as a result of participation in the
Starbase program.
new text end

new text begin Subd. 4. new text end new text begin Enlistment Incentives new text end

new text begin 10,209,000 new text end

new text begin 10,211,000 new text end

new text begin If appropriations for either year of the
biennium are insufficient, the appropriation
from the other year is available. The
appropriations for enlistment incentives are
available until expended.
new text end

Sec. 3.

new text begin [192.382] HONOR GUARDS.
new text end

new text begin Upon the death of any person who has honorably served six or more years or is
in active service in the Minnesota National Guard, the adjutant general may activate
members to serve as an honor guard at the funeral. Members activated for service as honor
guards must be paid at the rate provided in section 192.49, subdivision 1 or 2.
new text end

Sec. 4.

new text begin [192.515] NATIONAL GUARD NONAPPROPRIATED FUND
INSTRUMENTALITY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The adjutant general may:
new text end

new text begin (a) establish a Minnesota National Guard nonappropriated fund instrumentality to
create, operate, and maintain morale, welfare, and recreation facilities and activities at
Camp Ripley and other property owned, leased, or otherwise controlled by the Minnesota
Nation Guard; and
new text end

new text begin (b) create a board to manage the fund established under paragraph (a) and delegate
to the board the adjutant general's authority under this section.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "MNG NAFI" means the Minnesota National Guard nonappropriated fund
instrumentality.
new text end

new text begin (c) "Morale, welfare, and recreation" refers to a facility or activity intended to
provide recreational opportunities, promote unit and individual morale, and generally
improve the welfare of Minnesota National Guard personnel at Camp Ripley or other
properties owned, leased, or otherwise controlled by the Minnesota National Guard. It
does not include facilities or services provided by the Army and Air Force Exchange
Service. It also does not include facilities or services provided by other instrumentalities
through the use of appropriated funds.
new text end

new text begin Subd. 3. new text end

new text begin Use. new text end

new text begin The adjutant general may authorize Minnesota National Guard lands
and facilities to be used in support of morale, welfare, and recreation activities under this
section. That use must not interfere with military operations or training.
new text end

new text begin Subd. 4. new text end

new text begin Funds. new text end

new text begin (a) Except as otherwise specifically authorized in this section,
no general fund money or other state funds may be used for the purposes authorized
under this section.
new text end

new text begin (b) The MNG NAFI is authorized to accept donations or gifts from public or private
sources for purposes authorized under this section, including, but not limited to, federal
funds made available to the National Guard for related activities and money received from
recycling activities to the extent authorized by federal regulation.
new text end

new text begin (c) Money received from operation of activities under this section, including, but
not limited to, user fees and rental charges must be deposited and managed consistent
with this subdivision.
new text end

new text begin (d) The adjutant general may transfer funds from any existing morale, welfare, or
recreation fund to the MNG NAFI.
new text end

new text begin (e) Money received by the MNG NAFI must be deposited in the Minnesota National
Guard morale, welfare, and recreation fund.
new text end

new text begin (f) Accounts or funds created under this section must be audited annually by officers
of the military forces detailed by the adjutant general as military auditors.
new text end

new text begin Subd. 5. new text end

new text begin Rules. new text end

new text begin The adjutant general must adopt rules for the establishment,
management, and operation of the MNG NAFI consistent with this section.
new text end

Sec. 5. new text begin BOND SALE AUTHORIZATION REDUCED.
new text end

new text begin The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1,
is reduced by $150,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Laws 2006, chapter 258, section 14, subdivision 6, new text end new text begin is repealed.
new text end