HF 2678

1st Committee Engrossment - 86th Legislature (2009 - 2010) Posted on 03/19/2013 07:29pm

1.1A bill for an act

1.2relating to the operation of state government; changing certain provisions and
1.3programs affecting agriculture and veterans affairs; clarifying certain terms and
1.4procedures; changing certain record keeping provisions; requiring planning for
1.5additional veterans cemeteries;amending Minnesota Statutes 2008, sections
1.61.141, by adding subdivisions; 3.737, subdivision 4; 17.03, by adding a
1.7subdivision; 18B.31, subdivision 5; 18B.36, subdivision 1; 18B.37, subdivision
1.84; 28A.082, subdivision 1; 35.244, subdivisions 1, 2; 197.455, by adding a
1.9subdivision; 197.481, subdivisions 1, 2, 4; 197.60, subdivision 1; 197.601;
1.10197.605; 197.606; 197.609, subdivisions 1, 2; 197.75, subdivision 1; 239.092;
1.11239.093; 239.791, by adding subdivisions; 336.9-531; 336A.08, subdivisions
1.121, 4; 336A.14; 500.221, subdivisions 2, 4; 500.24, subdivision 2; 514.965,
1.13subdivision 2; 514.966, subdivisions 5, 6, by adding a subdivision; Minnesota
1.14Statutes 2009 Supplement, sections 3.737, subdivision 1; 18B.316, subdivision
1.1510; 190.19, subdivision 2a; 197.46; 239.791, subdivisions 1, 1a; Laws 2007,
1.16chapter 45, article 1, section 3, subdivisions 4, as amended, 5, as amended; Laws
1.172008, chapter 296, article 1, section 25; Laws 2009, chapter 94, article 1, section
1.183, subdivision 5; proposing coding for new law in Minnesota Statutes, chapter
1.1938; repealing Minnesota Statutes 2008, section 17.231.
1.20BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.21ARTICLE 1

1.22AGRICULTURE

1.23    Section 1. Minnesota Statutes 2009 Supplement, section 3.737, subdivision 1, is
1.24amended to read:
1.25    Subdivision 1. Compensation required. (a) Notwithstanding section 3.736,
1.26subdivision 3 , paragraph (e), or any other law, a livestock owner shall be compensated
1.27by the commissioner of agriculture for livestock that is destroyed by a gray wolf or is so
1.28crippled by a gray wolf that it must be destroyed. Except as provided in this section,
1.29the owner is entitled to the fair market value of the destroyed livestock as determined
2.1by the commissioner, upon recommendation of the fair market value by a university
2.2extension agent or a conservation officer. In any fiscal year, a livestock owner may not
2.3be compensated for a destroyed animal claim that is less than $100 in value and may be
2.4compensated up to $20,000, as determined under this section. In any fiscal year, the
2.5commissioner may provide compensation for claims filed under this section up to the
2.6amount expressly appropriated for this purpose.
2.7    (b) Either the agent or the A conservation officer, an official from the Animal and
2.8Plant Health Inspection Service of the United States Department of Agriculture, or a peace
2.9officer from the county sheriff's office must make a personal inspection of the site and
2.10submit a report to the commissioner detailing the results of the investigation. The agent or
2.11the conservation officer The investigator must take into account factors in addition to a
2.12visual identification of a carcass when making a recommendation to the commissioner.
2.13The commissioner, upon recommendation of the agent or conservation officer investigator,
2.14shall determine whether the livestock was destroyed by a gray wolf and any deficiencies in
2.15the owner's adoption of the best management practices developed in subdivision 5. The
2.16commissioner may authorize payment of claims only if the agent or the conservation
2.17officer has recommended payment. The owner shall file a claim on forms provided by the
2.18commissioner and available at the university extension agent's office.

2.19    Sec. 2. Minnesota Statutes 2008, section 3.737, subdivision 4, is amended to read:
2.20    Subd. 4. Payment; denial of compensation. (a) If the commissioner finds that the
2.21livestock owner has shown that the loss of the livestock was likely caused by a gray
2.22wolf, the commissioner shall pay compensation as provided in this section and in the
2.23rules of the department.
2.24(b) For a gray wolf depredation claim submitted by a livestock owner after
2.25September 1, 1999, the commissioner shall, based on the report from the university
2.26extension agent and conservation officer, evaluate the claim for conformance with
2.27the best management practices developed by the commissioner in subdivision 5. The
2.28commissioner must provide to the livestock owner an itemized list of any deficiencies
2.29in the livestock owner's adoption of best management practices that were noted in the
2.30university extension agent's or conservation officer's report.
2.31(c) (b) If the commissioner denies compensation claimed by an owner under
2.32this section, the commissioner shall issue a written decision based upon the available
2.33evidence. It shall include specification of the facts upon which the decision is based
2.34and the conclusions on the material issues of the claim. A copy of the decision shall
2.35be mailed to the owner.
3.1(d) (c) A decision to deny compensation claimed under this section is not subject to
3.2the contested case review procedures of chapter 14, but may be reviewed upon a trial de
3.3novo in a court in the county where the loss occurred. The decision of the court may be
3.4appealed as in other civil cases. Review in court may be obtained by filing a petition for
3.5review with the administrator of the court within 60 days following receipt of a decision
3.6under this section. Upon the filing of a petition, the administrator shall mail a copy to the
3.7commissioner and set a time for hearing within 90 days of the filing.

3.8    Sec. 3. Minnesota Statutes 2008, section 17.03, is amended by adding a subdivision to
3.9read:
3.10    Subd. 11a. Permitting efficiency goal and report. (a) It is the goal of the state that
3.11environmental and resource management permits be issued or denied within 150 days of
3.12the submission of a completed permit application. The commissioner of agriculture shall
3.13establish management systems designed to achieve the goal.
3.14(b) The commissioner shall prepare semiannual permitting efficiency reports that
3.15include statistics on meeting the goal in paragraph (a). The reports are due February 1
3.16and August 1 of each year. For permit applications that have not met the goal, the report
3.17must state the reasons for not meeting the goal, steps that will be taken to complete action
3.18on the application, and the expected timeline. In stating the reasons for not meeting the
3.19goal, the commissioner shall separately identify delays caused by the responsiveness of
3.20the proposer, lack of staff, scientific or technical disagreements, or the level of public
3.21engagement. The report must specify the number of days from initial submission of
3.22the application to the day of determination that the application is complete. The report
3.23for the final quarter of the fiscal year must aggregate the data for the year and assess
3.24whether program or system changes are necessary to achieve the goal. The report must
3.25be posted on the department Web site and submitted to the governor and the chairs of
3.26the house of representatives and senate committees having jurisdiction over agriculture
3.27policy and finance.
3.28(c) The commissioner shall allow electronic submission of environmental review
3.29and permit documents to the department.

3.30    Sec. 4. Minnesota Statutes 2008, section 18B.31, subdivision 5, is amended to read:
3.31    Subd. 5. Application fee. (a) An application for a pesticide dealer license must be
3.32accompanied by a nonrefundable application fee of $150.
3.33(b) If an application for renewal of a pesticide dealer license is not filed before
3.34January 1 of the year for which the license is to be issued expires, an additional fee of $20
4.150 percent of the application fee must be paid by the applicant before the commissioner
4.2may issue the license is issued.

4.3    Sec. 5. Minnesota Statutes 2009 Supplement, section 18B.316, subdivision 10, is
4.4amended to read:
4.5    Subd. 10. Application fee. (a) An application for an agricultural pesticide dealer
4.6license, or a renewal of an agricultural pesticide dealer license, must be accompanied
4.7by a nonrefundable fee of $150.
4.8(b) If an application for renewal of an agricultural pesticide dealer license is not filed
4.9before January of the year for which the license is to be issued expires, an additional fee of
4.1050 percent of the application fee must be paid by the applicant before the commissioner
4.11may issue the license.

4.12    Sec. 6. Minnesota Statutes 2008, section 18B.36, subdivision 1, is amended to read:
4.13    Subdivision 1. Requirement. (a) Except for a licensed commercial or
4.14noncommercial applicator, only a certified private applicator may use a restricted use
4.15pesticide to produce an agricultural commodity:
4.16(1) as a traditional exchange of services without financial compensation;
4.17(2) on a site owned, rented, or managed by the person or the person's employees; or
4.18(3) when the private applicator is one of two or fewer employees and the owner or
4.19operator is a certified private applicator or is licensed as a noncommercial applicator.
4.20(b) A private applicator person may not purchase a restricted use pesticide without
4.21presenting a license card, certified private applicator card, or the card number.

4.22    Sec. 7. Minnesota Statutes 2008, section 18B.37, subdivision 4, is amended to read:
4.23    Subd. 4. Storage, handling, incident response, and disposal plan. A commercial
4.24pesticide dealer, agricultural pesticide dealer, or a commercial, noncommercial, or
4.25structural pest control applicator or the business that the applicator is employed by must
4.26develop and maintain a plan that describes its pesticide storage, handling, incident
4.27response, and disposal practices. The plan must be kept at a principal business site
4.28or location within this state and must be submitted to the commissioner upon request
4.29on forms provided by the commissioner. The plan must be available for inspection by
4.30the commissioner.

4.31    Sec. 8. Minnesota Statutes 2008, section 28A.082, subdivision 1, is amended to read:
5.1    Subdivision 1. Fees; application. The fees for review of food handler facility floor
5.2plans under the Minnesota Food Code are based upon the square footage of the structure
5.3being newly constructed, remodeled, or converted. The fees for the review shall be:

5.4		square footage		review fee
5.5		0 - 4,999 .....	$	200.00
5.6		5,000 - 24,999 .....	$	275.00
5.7		25,000 plus .....	$	425.00

5.8    The applicant must submit the required fee, review application, plans, equipment
5.9specifications, materials lists, and other required information on forms supplied by the
5.10department at least 30 days prior to commencement of construction, remodeling, or
5.11conversion. The commissioner may waive this fee after determining that the facility's
5.12principal mode of business is not the sale of food and that the facility sells only
5.13prepackaged foods.

5.14    Sec. 9. Minnesota Statutes 2008, section 35.244, subdivision 1, is amended to read:
5.15    Subdivision 1. Designation of zones. The board has the authority to may establish
5.16zones for the control and eradication of tuberculosis and restrict the movement of cattle,
5.17bison, goats, and farmed cervidae within and between tuberculosis zones in the state.
5.18Zones within the state may be designated as accreditation preparatory, modified accredited,
5.19modified accredited advanced, or accredited free as those terms are defined in Code of
5.20Federal Regulations, title 9, part 77. The board may designate bovine tuberculosis control
5.21zones that contain not more than 325 herds.

5.22    Sec. 10. Minnesota Statutes 2008, section 35.244, subdivision 2, is amended to read:
5.23    Subd. 2. Requirements within a tuberculosis control within modified accredited
5.24zone. In a modified accredited tuberculosis control zone, the board has the authority to
5.25may:
5.26    (1) require owners of cattle, bison, goats, or farmed cervidae to report personal
5.27contact information and location of livestock to the board;
5.28    (2) require a permit or movement certificates for all cattle, bison, goats, and farmed
5.29cervidae moving between premises within the zone or leaving or entering the zone;
5.30    (3) require official identification of all cattle, bison, goats, and farmed cervidae
5.31within the zone or leaving or entering the zone;
5.32    (4) require a whole-herd tuberculosis test on each herd of cattle, bison, goats, or
5.33farmed cervidae when any of the animals in the herd is kept on a premises within the zone;
6.1    (5) require a negative tuberculosis test within 60 days prior to movement for any
6.2individual cattle, bison, goat, or farmed cervidae moved from a premises in the zone to
6.3another location in Minnesota, with the exception of cattle moving under permit directly
6.4to a slaughter facility under state or federal inspection;
6.5    (6) require a whole-herd tuberculosis test within 12 months prior to moving
6.6cattle, bison, goats, or farmed cervidae from premises in the zone to another location
6.7in Minnesota;
6.8    (7) require annual herd inventories on all cattle, bison, goat, or farmed cervidae
6.9herds; and
6.10    (8) require that a risk assessment be performed to evaluate the interaction of
6.11free-ranging deer and elk with cattle, bison, goat, and farmed cervidae herds and require
6.12the owner to implement the recommendations of the risk assessment.

6.13    Sec. 11. [38.345] APPROPRIATIONS BY MUNICIPALITIES.
6.14The council of any city and the board of supervisors of any town may incur expenses
6.15and spend money for county extension work, as provided in sections 38.33 to 38.38.

6.16    Sec. 12. Minnesota Statutes 2008, section 239.092, is amended to read:
6.17239.092 SALE FROM BULK.
6.18    (a) Bulk sales of commodities, when the buyer and seller are not both present to
6.19witness the measurement, must be accompanied by a delivery ticket containing the
6.20following information:
6.21    (1) the name and address of the person who weighed or measured the commodity;
6.22    (2) the date delivered;
6.23    (3) the quantity delivered;
6.24    (4) the count of individually wrapped packages delivered, if more than one is
6.25included in the quantity delivered;
6.26    (5) the quantity on which the price is based, if different than the quantity delivered;
6.27and
6.28    (6) the identity of the commodity in the most descriptive terms commercially
6.29practicable, including representations of quality made in connection with the sale.
6.30    (b) This section is not intended to conflict with the bulk sale requirements of the
6.31Department of Agriculture. If a conflict occurs, the law and rules of the Department of
6.32Agriculture govern.
7.1    (c) Firewood sold or distributed across state boundaries or more than 100 miles
7.2from its origin must include delivery ticket information regarding the harvest locations
7.3of the wood by county and state.
7.4(d) Paragraph (c) may be enforced using the authority granted in this chapter or
7.5section 18J.05 or 84D.13.

7.6    Sec. 13. Minnesota Statutes 2008, section 239.093, is amended to read:
7.7239.093 INFORMATION REQUIRED WITH PACKAGE.
7.8    (a) A package offered, exposed, or held for sale must bear a clear and conspicuous
7.9declaration of:
7.10    (1) the identity of the commodity in the package, unless the commodity can be easily
7.11identified through the wrapper or container;
7.12    (2) the net quantity in terms of weight, measure, or count;
7.13    (3) the name and address of the manufacturer, packer, or distributor, if the packages
7.14were not produced on the premises where they are offered, exposed, or held for sale; and
7.15    (4) the unit price, if the packages are part of a lot containing random weight
7.16packages of the same commodity.
7.17    (b) This section is not intended to conflict with the packaging requirements of the
7.18Department of Agriculture. If a conflict occurs, the laws and rules of the Department of
7.19Agriculture govern.
7.20    (c) Firewood sold or distributed across state boundaries or more than 100 miles
7.21from its origin must include information regarding the harvest locations of the wood by
7.22county and state on each label or wrapper.
7.23(d) Paragraph (c) may be enforced using the authority granted in this chapter or
7.24section 18J.05 or 84D.13.

7.25    Sec. 14. Minnesota Statutes 2009 Supplement, section 239.791, subdivision 1, is
7.26amended to read:
7.27    Subdivision 1. Minimum ethanol content required. (a) Except as provided in
7.28subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline
7.29sold or offered for sale in Minnesota must contain at least the quantity of ethanol required
7.30by clause (1) or (2), whichever is greater:
7.31(1) 10.0 percent denatured ethanol by volume; or
7.32(2) the maximum percent of denatured ethanol by volume authorized in a waiver
7.33granted by the United States Environmental Protection Agency under section 211(f)(4) of
7.34the Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4).
8.1(b) For purposes of enforcing the minimum ethanol requirement of paragraph (a),
8.2clause (1), a gasoline/ethanol blend will be construed to be in compliance if the ethanol
8.3content, exclusive of denaturants and permitted contaminants, comprises not less than 9.2
8.4percent by volume and not more than 10.0 percent by volume of the blend as determined
8.5by an appropriate United States Environmental Protection Agency or American Society of
8.6Testing Materials standard method of analysis of alcohol/ether content in engine fuels.
8.7(c) The provisions of this subdivision are suspended during any period of time that
8.8subdivision 1a, paragraph (a), is in effect.
8.9EFFECTIVE DATE.This section is effective the day following final enactment.

8.10    Sec. 15. Minnesota Statutes 2009 Supplement, section 239.791, subdivision 1a,
8.11is amended to read:
8.12    Subd. 1a. Minimum ethanol content required. (a) Except as provided in
8.13subdivisions 10 to 14, on August 30, 2013, and thereafter, a person responsible for the
8.14product shall ensure that all gasoline sold or offered for sale in Minnesota must contain at
8.15least the quantity of ethanol required by clause (1) or (2), whichever is greater:
8.16(1) 20 percent denatured ethanol by volume; or
8.17(2) the maximum percent of denatured ethanol by volume authorized in a waiver
8.18granted by the United States Environmental Protection Agency under section 211(f)(4) of
8.19the Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4).
8.20(b) For purposes of enforcing the minimum ethanol requirement of paragraph (a),
8.21clause (1), a gasoline/ethanol blend will be construed to be in compliance if the ethanol
8.22content, exclusive of denaturants and permitted contaminants, comprises not less than 18.4
8.23percent by volume and not more than 20 percent by volume of the blend as determined by
8.24an appropriate United States Environmental Protection Agency or American Society of
8.25Testing Materials standard method of analysis of alcohol content in motor fuels.
8.26(c) No motor fuel shall be deemed to be a defective product by virtue of the fact
8.27that the motor fuel is formulated or blended pursuant to the requirements of paragraph
8.28(a) under any theory of liability except for simple or willful negligence or fraud. This
8.29paragraph does not preclude an action for negligent, fraudulent, or willful acts. This
8.30paragraph does not affect a person whose liability arises under chapter 115, water pollution
8.31control; 115A, waste management; 115B, environmental response and liability; 115C,
8.32leaking underground storage tanks; or 299J, pipeline safety; under public nuisance law
8.33for damage to the environment or the public health; under any other environmental or
8.34public health law; or under any environmental or public health ordinance or program of a
8.35municipality as defined in section 466.01.
9.1(d) (c) This subdivision expires on December 31, 2010 2012, if by that date:
9.2(1) the commissioner of agriculture certifies and publishes the certification in
9.3the State Register that at least 20 percent of the volume of gasoline sold in the state
9.4is denatured ethanol; or
9.5(2) federal approval has not been granted under paragraph (a), clause (1). The
9.6United States Environmental Protection Agency's failure to act on an application shall not
9.7be deemed approval under paragraph (a), clause (1), or a waiver under section 211(f)(4) of
9.8the Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4).
9.9EFFECTIVE DATE.This section is effective the day following final enactment.

9.10    Sec. 16. Minnesota Statutes 2008, section 239.791, is amended by adding a subdivision
9.11to read:
9.12    Subd. 2a. Federal Clean Air Act waivers; conditions. (a) Before a waiver granted
9.13by the United States Environmental Protection Agency under section 211(f)(4) of the
9.14Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4),
9.15may alter the minimum content level required by subdivision 1, paragraph (a), clause (2),
9.16or subdivision 1a, paragraph (a), clause (2), the waiver must:
9.17(1) apply to all gasoline-powered motor vehicles irrespective of model year; and
9.18(2) allow for special regulatory treatment of Reid vapor pressure under Code of
9.19Federal Regulations, title 40, section 80.27(d), for blends of gasoline and ethanol up to the
9.20maximum percent of denatured ethanol by volume authorized under the waiver.
9.21(b) The minimum ethanol requirement in subdivision 1, paragraph (a), clause (2),
9.22or subdivision 1a, paragraph (a), clause (2), shall, upon the grant of the federal waiver,
9.23be effective on a date determined by the commissioner of commerce. In making this
9.24determination, the commissioner shall consider the amount of time required by refiners,
9.25retailers, and other fuel suppliers, acting expeditiously, to make the operational and
9.26logistical changes required to supply fuel in compliance with the minimum ethanol
9.27requirement.
9.28EFFECTIVE DATE.This section is effective the day following final enactment.

9.29    Sec. 17. Minnesota Statutes 2008, section 239.791, is amended by adding a subdivision
9.30to read:
9.31    Subd. 2b. Limited liability waiver. No motor fuel shall be deemed to be a defective
9.32product by virtue of the fact that the motor fuel is formulated or blended pursuant to
9.33the requirements of subdivision 1, paragraph (a), clause (2), or subdivision 1a, under
10.1any theory of liability except for simple or willful negligence or fraud. This subdivision
10.2does not preclude an action for negligent, fraudulent, or willful acts. This subdivision
10.3does not affect a person whose liability arises under chapter 115, water pollution control;
10.4115A, waste management; 115B, environmental response and liability; 115C, leaking
10.5underground storage tanks; or 299J, pipeline safety; under public nuisance law for damage
10.6to the environment or the public health; under any other environmental or public health
10.7law; or under any environmental or public health ordinance or program of a municipality
10.8as defined in section 466.01.
10.9EFFECTIVE DATE.This section is effective the day following final enactment.

10.10    Sec. 18. Minnesota Statutes 2008, section 239.791, is amended by adding a subdivision
10.11to read:
10.12    Subd. 2c. Fuel dispensing equipment; blends over ten percent ethanol.
10.13Notwithstanding any other law or rule, fuel dispensing equipment authorized to dispense
10.14fuel under subdivision 1, paragraph (a), clause (1), is authorized to dispense fuel under
10.15subdivision 1, paragraph (a), clause (2), or subdivision 1a.

10.16    Sec. 19. Minnesota Statutes 2008, section 336.9-531, is amended to read:
10.17336.9-531 ELECTRONIC ACCESS; LIABILITY; RETENTION.
10.18(a) Electronic access. The secretary of state may allow private parties to have
10.19electronic access to the central filing system and to other computerized records maintained
10.20by the secretary of state on a fee basis, except that: (1) visual access to electronic display
10.21terminals at the public counters at the Secretary of State's Office must be without charge
10.22and must be available during public counter hours; and (2) access by law enforcement
10.23personnel, acting in an official capacity, must be without charge. If the central filing system
10.24allows a form of electronic access to information regarding the obligations of debtors, the
10.25access must be available 24 hours a day, every day of the year. Notwithstanding section
10.2613.355, private parties who have electronic access to computerized records may view the
10.27Social Security number information about a debtor that is of record.
10.28Notwithstanding section 13.355, a filing office may include Social Security number
10.29information in an information request response under section 336.9-523 or a search of
10.30other liens in the central filing system. A filing office may also include Social Security
10.31number information on a photocopy or electronic copy of a record whether provided in
10.32an information request response or in response to a request made under section 13.03.
11.1Any Social Security number information or tax identification number information in the
11.2possession of the secretary of state is private data on individuals.
11.3(b) Liability. The secretary of state, county recorders, and their employees and
11.4agents are not liable for any loss or damages arising from errors in or omissions from
11.5information entered into the central filing system as a result of the electronic transmission
11.6of tax lien notices under sections 268.058, subdivision 1, paragraph (c); 270C.63,
11.7subdivision 4 ; 272.483; and 272.488, subdivisions 1 and 3.
11.8The state, the secretary of state, counties, county recorders, and their employees and
11.9agents are immune from liability that occurs as a result of errors in or omissions from
11.10information provided from the central filing system.
11.11(c) Retention. Once the image of a paper record has been captured by the central
11.12filing system, the secretary of state may remove or direct the removal from the files and
11.13destroy the paper record.
11.14EFFECTIVE DATE.This section is effective 30 days after the secretary of state
11.15certifies that the information systems of the Office of the Secretary of State have been
11.16modified to implement this section.

11.17    Sec. 20. Minnesota Statutes 2008, section 336A.08, subdivision 1, is amended to read:
11.18    Subdivision 1. Compilation. (a) The secretary of state shall compile the information
11.19on effective financing statements in the computerized filing system into a master list:
11.20(1) organized according to farm product;
11.21(2) arranged within each product:
11.22(i) in alphabetical order according to the last name of the individual debtor or, in
11.23the case of debtors doing business other than as individuals, the first word in the name
11.24of the debtors;
11.25(ii) in numerical order according to the Social Security number of the individual
11.26debtor or, in the case of debtors doing business other than as individuals, the Internal
11.27Revenue Service taxpayer identification number of the debtors unique identifier assigned
11.28by the secretary of state to, and associated with, the Social Security number of the debtor;
11.29(iii) geographically by county; and
11.30(iv) by crop year;
11.31(3) containing the information provided on an effective financing statement; and
11.32(4) designating any applicable terminations of the effective financing statement.
11.33(b) The secretary of state shall compile information from lien notices recorded in the
11.34computerized filing system into a statutory lien master list in alphabetical order according
11.35to the last name of the individual debtor or, in the case of debtors doing business other
12.1than as individuals, the first word in the name of the debtors. The secretary of state may
12.2also organize the statutory lien master list according to one or more of the categories of
12.3information established in paragraph (a). Any terminations of lien notices must be noted.
12.4EFFECTIVE DATE.This section is effective 30 days after the secretary of state
12.5certifies that the information systems of the Office of the Secretary of State have been
12.6modified to implement this section.

12.7    Sec. 21. Minnesota Statutes 2008, section 336A.08, subdivision 4, is amended to read:
12.8    Subd. 4. Distribution of master and partial lists. (a) The secretary of state shall
12.9maintain the information on the effective financing statement master list:
12.10(1) by farm product arranged alphabetically by debtor; and
12.11(2) by farm product arranged numerically by the debtor's Social Security number for
12.12an individual debtor or, in the case of debtors doing business other than as individuals, the
12.13Internal Revenue Service taxpayer identification number of the debtors unique identifier
12.14assigned by the secretary of state to, and associated with, the Social Security number
12.15of the debtor.
12.16(b) The secretary of state shall maintain the information in the farm products
12.17statutory lien master list by county arranged alphabetically by debtor.
12.18(c) The secretary of state shall distribute or make available the requested master and
12.19partial master lists on a monthly basis to farm product dealers registered under section
12.20336A.11 . Lists will be distributed or made available on or before the tenth day of each
12.21month or on the next business day thereafter if the tenth day is not a business day.
12.22(d) The secretary of state shall make the master and partial master lists available
12.23as written or printed paper documents and may make lists available in other forms or
12.24media, including:
12.25(1) any electronically transmitted medium; or
12.26(2) any form of digital media.
12.27(e) There shall be no fee for partial or master lists distributed via an electronically
12.28transmitted medium. The annual fee for any other form of digital media is $200. The
12.29annual fee for paper partial lists is $250 and $400 for paper master lists.
12.30(f) A farm products dealer shall register pursuant to section 336A.11 by the last
12.31business day of the month to receive the monthly lists requested by the farm products
12.32dealer for that month.
12.33(g) If a registered farm products dealer receives a monthly list that cannot be read or
12.34is incomplete, the farm products dealer must immediately inform the secretary of state by
12.35telephone or e-mail of the problem. The registered farm products dealer shall confirm the
13.1existence of the problem by writing to the secretary of state. The secretary of state shall
13.2provide the registered farm products dealer with new monthly lists in the medium chosen
13.3by the registered farm products dealer no later than five business days after receipt of the
13.4oral notice from the registered farm products dealer. A registered farm products dealer is
13.5not considered to have received notice of the information on the monthly lists until the
13.6duplicate list is received from the secretary of state or until five days have passed since the
13.7duplicate lists were deposited in the mail by the secretary of state, whichever comes first.
13.8(h) On receipt of a written notice pursuant to section 336A.13, the secretary of state
13.9shall duplicate the monthly lists requested by the registered farm products dealer. The
13.10duplicate monthly lists must be sent to the registered farm products dealer no later than five
13.11business days after receipt of the written notice from the registered farm products dealer.
13.12(i) A registered farm products dealer may request monthly lists in one medium
13.13per registration.
13.14(j) Registered farm products dealers must have renewed their registration before the
13.15first day of July each year. Failure to send in the registration before that date will result in
13.16the farm products dealer not receiving the requested monthly lists.
13.17(k) Registered farm products dealers choosing to obtain monthly lists via an
13.18electronically transmitted medium or in any form of digital media may choose to receive
13.19all of the information for the monthly lists requested the first month and then only
13.20additions and deletions to the database for the remaining 11 months of the year. Following
13.21the first year of registration, the registered farm products dealer may choose to continue to
13.22receive one copy of the full monthly list at the beginning of each year or may choose to
13.23receive only additions and deletions.
13.24EFFECTIVE DATE.This section is effective 30 days after the secretary of state
13.25certifies that the information systems of the Office of the Secretary of State have been
13.26modified to implement this section.

13.27    Sec. 22. Minnesota Statutes 2008, section 336A.14, is amended to read:
13.28336A.14 RESTRICTED USE OF INFORMATION.
13.29Any Social Security number information or tax identification number information
13.30in the possession of the secretary of state is private data on individuals. Information
13.31obtained from the seller of a farm product relative to the Social Security number or tax
13.32identification number of the true owner of the farm product and all information obtained
13.33from the master or limited list may not be used for purposes that are not related to: (1)
14.1purchase of a farm product; (2) taking a security interest against a farm product; or (3)
14.2perfecting a farm product statutory lien.
14.3EFFECTIVE DATE.This section is effective 30 days after the secretary of state
14.4certifies that the information systems of the Office of the Secretary of State have been
14.5modified to implement this section.

14.6    Sec. 23. Minnesota Statutes 2008, section 500.221, subdivision 2, is amended to read:
14.7    Subd. 2. Aliens and non-American corporations. Except as hereinafter provided,
14.8no natural person shall acquire directly or indirectly any interest in agricultural land unless
14.9the person is a citizen of the United States or a permanent resident alien of the United
14.10States. In addition to the restrictions in section 500.24, no corporation, partnership,
14.11limited partnership, trustee, or other business entity shall directly or indirectly, acquire
14.12or otherwise obtain any interest, whether legal, beneficial or otherwise, in any title to
14.13agricultural land unless at least 80 percent of each class of stock issued and outstanding or
14.1480 percent of the ultimate beneficial interest of the entity is held directly or indirectly by
14.15citizens of the United States or permanent resident aliens. This section shall not apply:
14.16(1) to agricultural land that may be acquired by devise, inheritance, as security for
14.17indebtedness, by process of law in the collection of debts, or by any procedure for the
14.18enforcement of a lien or claim thereon, whether created by mortgage or otherwise. All
14.19agricultural land acquired in the collection of debts or by the enforcement of a lien or
14.20claim shall be disposed of within three years after acquiring ownership;
14.21(2) to citizens or subjects of a foreign country whose rights to hold land are secured
14.22by treaty;
14.23(3) to lands used for transportation purposes by a common carrier, as defined in
14.24section 218.011, subdivision 10;
14.25(4) to lands or interests in lands acquired for use in connection with (i) the production
14.26of timber and forestry products by a corporation organized under the laws of Minnesota,
14.27or (ii) mining and mineral processing operations. Pending the development of agricultural
14.28land for the production of timber and forestry products or mining purposes the land may
14.29not be used for farming except under lease to a family farm, a family farm corporation or
14.30an authorized farm corporation;
14.31(5) to agricultural land operated for research or experimental purposes if the
14.32ownership of the agricultural land is incidental to the research or experimental objectives
14.33of the person or business entity and the total acreage owned by the person or business
14.34entity does not exceed the acreage owned on May 27, 1977;
15.1(6) to the purchase of any tract of 40 acres or less for facilities incidental to pipeline
15.2operation by a company operating a pipeline as defined in section 216G.01, subdivision 3;
15.3(7) to agricultural land and land capable of being used as farmland in vegetable
15.4processing operations that is reasonably necessary to meet the requirements of pollution
15.5control law or rules; or
15.6(8) to an interest in agricultural land held on the August 1, 2003, by a natural person
15.7with a nonimmigrant treaty investment visa, pursuant to United States Code, title 8,
15.8section 1101(a)15(E)(ii), if, within five years after August 1, 2003, the person:
15.9(i) disposes of all agricultural land held; or
15.10(ii) becomes a permanent resident alien of the United States or a United States
15.11citizen.; or
15.12(9) to an easement taken by an individual or entity for the installation and repair
15.13of transmission lines and for wind rights.

15.14    Sec. 24. Minnesota Statutes 2008, section 500.221, subdivision 4, is amended to read:
15.15    Subd. 4. Reports. (a) Any natural person, corporation, partnership, limited
15.16partnership, trustee, or other business entity prohibited from future acquisition of
15.17agricultural land may retain title to any agricultural land lawfully acquired within this state
15.18prior to June 1, 1981, but shall file a report with the commissioner of agriculture annually
15.19before January 31 containing a description of all agricultural land held within this state,
15.20the purchase price and market value of the land, the use to which it is put, the date of
15.21acquisition and any other reasonable information required by the commissioner.
15.22(b) An individual or entity that qualifies for an exemption under subdivision 2, clause
15.23(2) or (9), and owns an interest in agricultural land shall file a report with the commissioner
15.24of agriculture within 30 days of acquisition and annually thereafter by January 31,
15.25containing a description of all interests in agricultural land held within this state.
15.26(c) The commissioner shall make the information available to the public.
15.27(d) All required annual reports shall include a filing fee of $50 plus $10 for each
15.28additional quarter section of land.

15.29    Sec. 25. Minnesota Statutes 2008, section 500.24, subdivision 2, is amended to read:
15.30    Subd. 2. Definitions. The definitions in this subdivision apply to this section.
15.31(a) "Farming" means the production of (1) agricultural products; (2) livestock or
15.32livestock products; (3) milk or milk products; or (4) fruit or other horticultural products. It
15.33does not include the processing, refining, or packaging of said products, nor the provision
15.34of spraying or harvesting services by a processor or distributor of farm products. It does
16.1not include the production of timber or forest products, the production of poultry or
16.2poultry products, or the feeding and caring for livestock that are delivered to a corporation
16.3for slaughter or processing for up to 20 days before slaughter or processing.
16.4(b) "Family farm" means an unincorporated farming unit owned by one or more
16.5persons residing on the farm or actively engaging in farming.
16.6(c) "Family farm corporation" means a corporation founded for the purpose of
16.7farming and the ownership of agricultural land in which the majority of the stock is held
16.8by and the majority of the stockholders are persons, the spouses of persons, or current
16.9beneficiaries of one or more family farm trusts in which the trustee holds stock in a family
16.10farm corporation, related to each other within the third degree of kindred according to
16.11the rules of the civil law, and at least one of the related persons is residing on or actively
16.12operating the farm, and none of whose stockholders are corporations; provided that a
16.13family farm corporation shall not cease to qualify as such hereunder by reason of any:
16.14(1) transfer of shares of stock to a person or the spouse of a person related within
16.15the third degree of kindred according to the rules of civil law to the person making the
16.16transfer, or to a family farm trust of which the shareholder, spouse, or related person is
16.17a current beneficiary; or
16.18(2) distribution from a family farm trust of shares of stock to a beneficiary related
16.19within the third degree of kindred according to the rules of civil law to a majority of the
16.20current beneficiaries of the trust, or to a family farm trust of which the shareholder, spouse,
16.21or related person is a current beneficiary.
16.22For the purposes of this section, a transfer may be made with or without
16.23consideration, either directly or indirectly, during life or at death, whether or not in trust,
16.24of the shares in the family farm corporation, and stock owned by a family farm trust are
16.25considered to be owned in equal shares by the current beneficiaries.
16.26(d) "Family farm trust" means:
16.27(1) a trust in which:
16.28(i) a majority of the current beneficiaries are persons or spouses of persons who are
16.29related to each other within the third degree of kindred according to the rules of civil law;
16.30(ii) all of the current beneficiaries are natural persons or nonprofit corporations
16.31or trusts described in the Internal Revenue Code, section 170(c), as amended, and the
16.32regulations under that section; and
16.33(iii) one of the family member current beneficiaries is residing on or actively
16.34operating the farm; or the trust leases the agricultural land to a family farm unit, a
16.35family farm corporation, an authorized farm corporation, an authorized livestock farm
16.36corporation, a family farm limited liability company, a family farm trust, an authorized
17.1farm limited liability company, a family farm partnership, or an authorized farm
17.2partnership; or
17.3(2) a charitable remainder trust as defined in the Internal Revenue Code, section 664,
17.4as amended, and the regulations under that section, and a charitable lead trust as set forth
17.5in the Internal Revenue Code, section 170(f), and the regulations under that section.
17.6(e) "Authorized farm corporation" means a corporation meeting the following
17.7standards:
17.8(1) it has no more than five shareholders, provided that for the purposes of this
17.9section, a husband and wife are considered one shareholder;
17.10(2) all its shareholders, other than any estate, are natural persons or a family farm
17.11trust;
17.12(3) it does not have more than one class of shares;
17.13(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed
17.1420 percent of its gross receipts;
17.15(5) shareholders holding 51 percent or more of the interest in the corporation reside
17.16on the farm or are actively engaging in farming;
17.17(6) it does not, directly or indirectly, own or otherwise have an interest in any title to
17.18more than 1,500 acres of agricultural land; and
17.19(7) none of its shareholders are shareholders in other authorized farm corporations
17.20that directly or indirectly in combination with the corporation own more than 1,500 acres
17.21of agricultural land.
17.22(f) "Authorized livestock farm corporation" means a corporation formed for the
17.23production of livestock and meeting the following standards:
17.24(1) it is engaged in the production of livestock other than dairy cattle;
17.25(2) all its shareholders, other than any estate, are natural persons, family farm trusts,
17.26or family farm corporations;
17.27(3) it does not have more than one class of shares;
17.28(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed
17.2920 percent of its gross receipts;
17.30(5) shareholders holding 75 percent or more of the control, financial, and capital
17.31investment in the corporation are farmers, and at least 51 percent of the required
17.32percentage of farmers are actively engaged in livestock production;
17.33(6) it does not, directly or indirectly, own or otherwise have an interest in any title to
17.34more than 1,500 acres of agricultural land; and
18.1(7) none of its shareholders are shareholders in other authorized farm corporations
18.2that directly or indirectly in combination with the corporation own more than 1,500 acres
18.3of agricultural land.
18.4(g) "Agricultural land" means real estate used for farming or capable of being used
18.5for farming in this state.
18.6(h) "Pension or investment fund" means a pension or employee welfare benefit fund,
18.7however organized, a mutual fund, a life insurance company separate account, a common
18.8trust of a bank or other trustee established for the investment and reinvestment of money
18.9contributed to it, a real estate investment trust, or an investment company as defined in
18.10United States Code, title 15, section 80a-3.
18.11(i) "Farm homestead" means a house including adjoining buildings that has been
18.12used as part of a farming operation or is part of the agricultural land used for a farming
18.13operation.
18.14(j) "Family farm partnership" means a limited partnership formed for the purpose of
18.15farming and the ownership of agricultural land in which the majority of the interests in
18.16the partnership is held by and the majority of the partners are natural persons or current
18.17beneficiaries of one or more family farm trusts in which the trustee holds an interest in a
18.18family farm partnership related to each other within the third degree of kindred according
18.19to the rules of the civil law, and at least one of the related persons is residing on the farm,
18.20actively operating the farm, or the agricultural land was owned by one or more of the
18.21related persons for a period of five years before its transfer to the limited partnership, and
18.22none of the partners is a corporation. A family farm partnership does not cease to qualify
18.23as a family farm partnership because of a:
18.24(1) transfer of a partnership interest to a person or spouse of a person related within
18.25the third degree of kindred according to the rules of civil law to the person making the
18.26transfer or to a family farm trust of which the partner, spouse, or related person is a current
18.27beneficiary; or
18.28(2) distribution from a family farm trust of a partnership interest to a beneficiary
18.29related within the third degree of kindred according to the rules of civil law to a majority
18.30of the current beneficiaries of the trust, or to a family farm trust of which the partner,
18.31spouse, or related person is a current beneficiary.
18.32For the purposes of this section, a transfer may be made with or without
18.33consideration, either directly or indirectly, during life or at death, whether or not in trust,
18.34of a partnership interest in the family farm partnership, and interest owned by a family
18.35farm trust is considered to be owned in equal shares by the current beneficiaries.
19.1(k) "Authorized farm partnership" means a limited partnership meeting the following
19.2standards:
19.3(1) it has been issued a certificate from the secretary of state or is registered with the
19.4county recorder and farming and ownership of agricultural land is stated as a purpose or
19.5character of the business;
19.6(2) it has no more than five partners;
19.7(3) all its partners, other than any estate, are natural persons or family farm trusts;
19.8(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed
19.920 percent of its gross receipts;
19.10(5) its general partners hold at least 51 percent of the interest in the land assets of the
19.11partnership and reside on the farm or are actively engaging in farming not more than 1,500
19.12acres as a general partner in an authorized limited partnership;
19.13(6) its limited partners do not participate in the business of the limited partnership
19.14including operating, managing, or directing management of farming operations;
19.15(7) it does not, directly or indirectly, own or otherwise have an interest in any title to
19.16more than 1,500 acres of agricultural land; and
19.17(8) none of its limited partners are limited partners in other authorized farm
19.18partnerships that directly or indirectly in combination with the partnership own more than
19.191,500 acres of agricultural land.
19.20(l) "Family farm limited liability company" means a limited liability company
19.21founded for the purpose of farming and the ownership of agricultural land in which the
19.22majority of the membership interests is held by and the majority of the members are
19.23natural persons, or current beneficiaries of one or more family farm trusts in which the
19.24trustee holds an interest in a family farm limited liability company related to each other
19.25within the third degree of kindred according to the rules of the civil law, and at least one of
19.26the related persons is residing on the farm, actively operating the farm, or the agricultural
19.27land was owned by one or more of the related persons for a period of five years before
19.28its transfer to the limited liability company, and none of the members is a corporation or
19.29a limited liability company. A family farm limited liability company does not cease to
19.30qualify as a family farm limited liability company because of:
19.31(1) a transfer of a membership interest to a person or spouse of a person related
19.32within the third degree of kindred according to the rules of civil law to the person making
19.33the transfer or to a family farm trust of which the member, spouse, or related person is
19.34a current beneficiary; or
19.35(2) distribution from a family farm trust of a membership interest to a beneficiary
19.36related within the third degree of kindred according to the rules of civil law to a majority
20.1of the current beneficiaries of the trust, or to a family farm trust of which the member,
20.2spouse, or related person is a current beneficiary.
20.3For the purposes of this section, a transfer may be made with or without
20.4consideration, either directly or indirectly, during life or at death, whether or not in trust, of
20.5a membership interest in the family farm limited liability company, and interest owned by
20.6a family farm trust is considered to be owned in equal shares by the current beneficiaries.
20.7Except for a state or federally chartered financial institution acquiring an encumbrance
20.8for the purpose of security or an interest under paragraph (x), a member of a family farm
20.9limited liability company may not transfer a membership interest, including a financial
20.10interest, to a person who is not otherwise eligible to be a member under this paragraph.
20.11(m) "Authorized farm limited liability company" means a limited liability company
20.12meeting the following standards:
20.13(1) it has no more than five members;
20.14(2) all its members, other than any estate, are natural persons or family farm trusts;
20.15(3) it does not have more than one class of membership interests;
20.16(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed
20.1720 percent of its gross receipts;
20.18(5) members holding 51 percent or more of both the governance rights and financial
20.19rights in the limited liability company reside on the farm or are actively engaged in
20.20farming;
20.21(6) it does not, directly or indirectly, own or otherwise have an interest in any title to
20.22more than 1,500 acres of agricultural land; and
20.23(7) none of its members are members in other authorized farm limited liability
20.24companies that directly or indirectly in combination with the authorized farm limited
20.25liability company own more than 1,500 acres of agricultural land.
20.26Except for a state or federally chartered financial institution acquiring an
20.27encumbrance for the purpose of security or an interest under paragraph (x), a member of
20.28an authorized farm limited liability company may not transfer a membership interest,
20.29including a financial interest, to a person who is not otherwise eligible to be a member
20.30under this paragraph.
20.31(n) "Farmer" means a natural person who regularly participates in physical labor or
20.32operations management in the person's farming operation and files "Schedule F" as part of
20.33the person's annual Form 1040 filing with the United States Internal Revenue Service.
20.34(o) "Actively engaged in livestock production" means performing day-to-day
20.35physical labor or day-to-day operations management that significantly contributes to
20.36livestock production and the functioning of a livestock operation.
21.1(p) "Research or experimental farm" means a corporation, limited partnership,
21.2pension, investment fund, or limited liability company that owns or operates agricultural
21.3land for research or experimental purposes, provided that any commercial sales from the
21.4operation are incidental to the research or experimental objectives of the corporation. A
21.5corporation, limited partnership, limited liability company, or pension or investment fund
21.6seeking initial approval by the commissioner to operate agricultural land for research or
21.7experimental purposes must first submit to the commissioner a prospectus or proposal of
21.8the intended method of operation containing information required by the commissioner
21.9including a copy of any operational contract with individual participants.
21.10(q) "Breeding stock farm" means a corporation, limited partnership, or limited
21.11liability company, that owns or operates agricultural land for the purpose of raising
21.12breeding stock, including embryos, for resale to farmers or for the purpose of growing
21.13seed, wild rice, nursery plants, or sod. An entity that is organized to raise livestock
21.14other than dairy cattle under this paragraph that does not qualify as an authorized farm
21.15corporation must:
21.16(1) sell all castrated animals to be fed out or finished to farming operations that are
21.17neither directly nor indirectly owned by the business entity operating the breeding stock
21.18operation; and
21.19(2) report its total production and sales annually to the commissioner.
21.20(r) "Aquatic farm" means a corporation, limited partnership, or limited liability
21.21company, that owns or leases agricultural land as a necessary part of an aquatic farm
21.22as defined in section 17.47, subdivision 3.
21.23(s) "Religious farm" means a corporation formed primarily for religious purposes
21.24whose sole income is derived from agriculture.
21.25(t) "Utility corporation" means a corporation regulated under Minnesota Statutes
21.261974, chapter 216B, that owns agricultural land for purposes described in that chapter, or
21.27an electric generation or transmission cooperative that owns agricultural land for use in
21.28its business if the land is not used for farming except under lease to a family farm unit,
21.29a family farm corporation, a family farm trust, a family farm partnership, or a family
21.30farm limited liability company.
21.31(u) "Development organization" means a corporation, limited partnership, limited
21.32liability company, or pension or investment fund that has an interest in agricultural land
21.33for which the corporation, limited partnership, limited liability company, or pension or
21.34investment fund has documented plans to use and subsequently uses the land within
21.35six years from the date of purchase for a specific nonfarming purpose, or if the land is
21.36zoned nonagricultural, or if the land is located within an incorporated area. A corporation,
22.1limited partnership, limited liability company, or pension or investment fund may hold
22.2agricultural land in the amount necessary for its nonfarm business operation; provided,
22.3however, that pending the development of agricultural land for nonfarm purposes, the land
22.4may not be used for farming except under lease to a family farm unit, a family farm
22.5corporation, a family farm trust, an authorized farm corporation, an authorized livestock
22.6farm corporation, a family farm partnership, an authorized farm partnership, a family farm
22.7limited liability company, or an authorized farm limited liability company, or except when
22.8controlled through ownership, options, leaseholds, or other agreements by a corporation
22.9that has entered into an agreement with the United States under the New Community Act
22.10of 1968 (Title IV of the Housing and Urban Development Act of 1968, United States Code,
22.11title 42, sections 3901 to 3914) as amended, or a subsidiary or assign of such a corporation.
22.12(v) "Exempt land" means agricultural land owned or leased by a corporation as of
22.13May 20, 1973, agricultural land owned or leased by a pension or investment fund as of
22.14May 12, 1981, agricultural land owned or leased by a limited partnership as of May 1,
22.151988, or agricultural land owned or leased by a trust as of the effective date of Laws 2000,
22.16chapter 477, including the normal expansion of that ownership at a rate not to exceed 20
22.17percent of the amount of land owned as of May 20, 1973, for a corporation; May 12, 1981,
22.18for a pension or investment fund; May 1, 1988, for a limited partnership, or the effective
22.19date of Laws 2000, chapter 477, for a trust, measured in acres, in any five-year period,
22.20and including additional ownership reasonably necessary to meet the requirements of
22.21pollution control rules. A corporation, limited partnership, or pension or investment fund
22.22that is eligible to own or lease agricultural land under this section prior to May 1997, or a
22.23corporation that is eligible to own or lease agricultural land as a benevolent trust under this
22.24section prior to the effective date of Laws 2000, chapter 477, may continue to own or lease
22.25agricultural land subject to the same conditions and limitations as previously allowed.
22.26(w) "Gifted land" means agricultural land acquired as a gift, either by grant or devise,
22.27by an educational, religious, or charitable nonprofit corporation, limited partnership,
22.28limited liability company, or pension or investment fund if all land so acquired is disposed
22.29of within ten years after acquiring the title.
22.30(x) "Repossessed land" means agricultural land acquired by a corporation, limited
22.31partnership, limited liability company, or pension or investment fund by process of law
22.32in the collection of debts, or by any procedure for the enforcement of a lien or claim on
22.33the land, whether created by mortgage or otherwise if all land so acquired is disposed of
22.34within five years after acquiring the title. The five-year limitation is a covenant running
22.35with the title to the land against any grantee, assignee, or successor of the pension or
22.36investment fund, corporation, limited partnership, or limited liability company. The land
23.1so acquired must not be used for farming during the five-year period, except under a
23.2lease to a family farm unit, a family farm corporation, a family farm trust, an authorized
23.3farm corporation, an authorized livestock farm corporation, a family farm partnership, an
23.4authorized farm partnership, a family farm limited liability company, or an authorized
23.5farm limited liability company. Notwithstanding the five-year divestiture requirement
23.6under this paragraph, a financial institution may continue to own the agricultural land if the
23.7agricultural land is leased to the immediately preceding former owner, but must dispose
23.8of the agricultural land within ten years of acquiring the title. Livestock acquired by a
23.9pension or investment fund, corporation, limited partnership, or limited liability company
23.10in the collection of debts, or by a procedure for the enforcement of lien or claim on the
23.11livestock whether created by security agreement or otherwise after August 1, 1994, must
23.12be sold or disposed of within one full production cycle for the type of livestock acquired
23.13or 18 months after the livestock is acquired, whichever is earlier.
23.14(y) "Commissioner" means the commissioner of agriculture.
23.15(z) "Nonprofit corporation" means a nonprofit corporation organized under state
23.16nonprofit corporation or trust law or qualified for tax-exempt status under federal tax
23.17law that uses the land for a specific nonfarming purpose or, leases the agricultural land
23.18to a family farm unit, a family farm corporation, an authorized farm corporation, an
23.19authorized livestock farm corporation, a family farm limited liability company, a family
23.20farm trust, an authorized farm limited liability company, a family farm partnership, or an
23.21authorized farm partnership, or actively farms less than 40 acres and uses all profits from
23.22the agricultural land for educational purposes.
23.23(aa) "Current beneficiary" means a person who at any time during a year is entitled
23.24to, or at the discretion of any person may, receive a distribution from the income or
23.25principal of the trust. It does not include a distributee trust, other than a trust described in
23.26section 170(c) of the Internal Revenue Code, as amended, but does include the current
23.27beneficiaries of the distributee trust. It does not include a person in whose favor a power
23.28of appointment could be exercised until the holder of the power of appointment actually
23.29exercises the power of appointment in that person's favor. It does not include a person who
23.30is entitled to receive a distribution only after a specified time or upon the occurrence of a
23.31specified event until the time or occurrence of the event. For the purposes of this section, a
23.32distributee trust is a current beneficiary of a family farm trust.
23.33(bb) "De minimis" means that any corporation, pension or investment fund, limited
23.34liability company, or limited partnership that directly or indirectly owns, acquires, or
23.35otherwise obtains any interest in 40 acres or less of agricultural land and annually receives
23.36less than $150 per acre in gross revenue from rental or agricultural production.

24.1    Sec. 26. Minnesota Statutes 2008, section 514.965, subdivision 2, is amended to read:
24.2    Subd. 2. Agricultural lien. "Agricultural lien" means an agricultural lien as defined
24.3in section 336.9-102(a)(5) and includes a veterinarian's lien, breeder's lien, livestock
24.4production input lien, temporary livestock production input lien, and feeder's lien under
24.5this section and section 514.966.

24.6    Sec. 27. Minnesota Statutes 2008, section 514.966, is amended by adding a subdivision
24.7to read:
24.8    Subd. 3a. Temporary livestock production input lien; debtor in mediation. (a)
24.9A supplier furnishing livestock production inputs in the ordinary course of business to a
24.10debtor who has filed a mediation request under chapter 583 has a livestock production
24.11input lien for the unpaid retail cost of the livestock production input. A perfected livestock
24.12production input lien that attaches to livestock may not exceed the amount, if any, that the
24.13sales price of the livestock for which the inputs were received exceeds the greater of the
24.14fair market value of the livestock at the time the lien attaches or the acquisition price of
24.15the livestock. A livestock production input lien becomes effective when the agricultural
24.16production inputs are furnished by the supplier to the purchaser.
24.17(b) A livestock production input lien under this subdivision applies to livestock
24.18production inputs provided to the debtor during the 45 days following a mediation request
24.19under chapter 583.
24.20(c) A person who supplies livestock production inputs under this subdivision shall
24.21provide a lien-notification statement as required under subdivision 3, paragraphs (b)
24.22and (c), but is not subject to subdivision 3, paragraphs (d) to (f). A perfected temporary
24.23livestock production input lien corresponding to the lien-notification statement has priority
24.24over any security interest of the lender in the same livestock or their proceeds for the
24.25lesser of:
24.26(1) the amount stated in the lien-notification statement; or
24.27(2) the unpaid retail cost of the livestock production input identified in the
24.28lien-notification statement, subject to any limitation in paragraph (a).

24.29    Sec. 28. Minnesota Statutes 2008, section 514.966, subdivision 5, is amended to read:
24.30    Subd. 5. Scope. A veterinarian's lien, breeder's lien, livestock production input lien,
24.31temporary livestock production lien, or feeder's lien attaches to the livestock serviced by
24.32the agricultural lienholder, and products and proceeds thereof to the extent of the price
24.33or value of the service provided.

25.1    Sec. 29. Minnesota Statutes 2008, section 514.966, subdivision 6, is amended to read:
25.2    Subd. 6. Perfection. (a) An agricultural lien under this section is perfected if a
25.3financing statement is filed pursuant to sections 336.9-501 to 336.9-530 and within the
25.4time periods set forth in paragraphs (b) to (e) (f).
25.5(b) A veterinarian's lien must be perfected on or before 180 days after the last item
25.6of the veterinary service is performed.
25.7(c) A breeder's lien must be perfected by six months after the last date that breeding
25.8services are provided the obligor.
25.9(d) Except as provided in paragraph (f), a livestock production input lien must be
25.10perfected by six months after the last date that livestock production inputs are furnished
25.11the obligor.
25.12(e) A feeder's lien must be perfected on or before 60 days after the last date that
25.13feeding services are furnished the obligor.
25.14(f) A temporary livestock production input lien, under subdivision 3a, must be
25.15perfected on or before 60 days after the last date that livestock production inputs are
25.16furnished the obligor.

25.17    Sec. 30. Laws 2007, chapter 45, article 1, section 3, subdivision 4, as amended by
25.18Laws 2008, chapter 297, article 1, section 64; and Laws 2008, chapter 363, article 7,
25.19section 6, is amended to read:

25.20 25.21

Subd. 4. Bioenergy and Value-Added Agricultural Products

19,918,000

15,168,000

25.22$15,168,000 the first year and $15,168,000
25.23the second year are for ethanol producer
25.24payments under Minnesota Statutes, section
25.2541A.09 . If the total amount for which all
25.26producers are eligible in a quarter exceeds
25.27the amount available for payments, the
25.28commissioner shall make payments on a
25.29pro rata basis. If the appropriation exceeds
25.30the total amount for which all producers
25.31are eligible in a fiscal year for scheduled
25.32payments and for deficiencies in payments
25.33during previous fiscal years, the balance
25.34in the appropriation is available to the
25.35commissioner for value-added agricultural
26.1programs including the value-added
26.2agricultural product processing and
26.3marketing grant program under Minnesota
26.4Statutes, section 17.101, subdivision 5. The
26.5appropriation remains available until spent.
26.6$3,000,000 the first year is for grants to
26.7bioenergy projects. The NextGen Energy
26.8Board shall make recommendations to
26.9the commissioner on grants for owners of
26.10Minnesota facilities producing bioenergy,
26.11organizations that provide for on-station,
26.12on-farm field scale research and outreach to
26.13develop and test the agronomic and economic
26.14requirements of diverse stands of prairie
26.15plants and other perennials for bioenergy
26.16systems, or certain nongovernmental
26.17entities. For the purposes of this paragraph,
26.18"bioenergy" includes transportation fuels
26.19derived from cellulosic material as well as
26.20the generation of energy for commercial heat,
26.21industrial process heat, or electrical power
26.22from cellulosic material via gasification
26.23or other processes. The board must give
26.24priority to a bioenergy facility that is at
26.25least 60 percent owned and controlled by
26.26farmers, as defined in Minnesota Statutes,
26.27section 500.24, subdivision 2, paragraph
26.28(n), or natural persons residing in the
26.29county or counties contiguous to where the
26.30facility is located. Grants are limited to 50
26.31percent of the cost of research, technical
26.32assistance, or equipment related to bioenergy
26.33production or $1,000,000, whichever is
26.34less. Grants to nongovernmental entities
26.35for the development of business plans and
26.36structures related to community ownership
27.1of eligible bioenergy facilities together may
27.2not exceed $150,000. The board shall make
27.3a good faith effort to select projects that have
27.4merit and when taken together represent a
27.5variety of bioenergy technologies, biomass
27.6feedstocks, and geographic regions of the
27.7state. Projects must have a qualified engineer
27.8certification on the technology and fuel
27.9source. Grantees shall provide reports at
27.10the request of the commissioner and must
27.11actively participate in the Agricultural
27.12Utilization Research Institute's Renewable
27.13Energy Roundtable. No later than February
27.141, 2009, the commissioner shall report on
27.15the projects funded under this appropriation
27.16to the house and senate committees with
27.17jurisdiction over agriculture finance. The
27.18commissioner's costs in administering the
27.19program may be paid from the appropriation.
27.20Any unencumbered balance does not cancel
27.21at the end of the first year and is available
27.22in the second year This appropriation is
27.23available until June 30, 2011.
27.24$200,000 the first year is for a grant to the
27.25Minnesota Turf Seed Council for basic
27.26and applied agronomic research on native
27.27plants, including plant breeding, nutrient
27.28management, pest management, disease
27.29management, yield, and viability. The grant
27.30recipient may subcontract with a qualified
27.31third party for some or all of the basic
27.32or applied research. The grant recipient
27.33must actively participate in the Agricultural
27.34Utilization Research Institute's Renewable
27.35Energy Roundtable and no later than
27.36February 1, 2009, must report to the house
28.1and senate committees with jurisdiction
28.2over agriculture finance. This is a onetime
28.3appropriation and is available until spent.
28.4$200,000 the first year is for a grant to a joint
28.5venture combined heat and power energy
28.6facility located in Scott or LeSueur County
28.7for the creation of a centrally located biomass
28.8fuel supply depot with the capability of
28.9unloading, processing, testing, scaling, and
28.10storing renewable biomass fuels. The grant
28.11must be matched by at least $3 of nonstate
28.12funds for every $1 of state funds. The grant
28.13recipient must actively participate in the
28.14Agricultural Utilization Research Institute's
28.15Renewable Energy Roundtable and no
28.16later than February 1, 2009, must report
28.17to the house and senate committees with
28.18jurisdiction over agriculture finance. This is
28.19a onetime appropriation and is available until
28.20spent.
28.21$300,000 the first year is for a grant to the
28.22Bois Forte Band of Chippewa for a feasibility
28.23study of a renewable energy biofuels
28.24demonstration facility on the Bois Forte
28.25Reservation in St. Louis and Koochiching
28.26Counties. The grant shall be used by the Bois
28.27Forte Band to conduct a detailed feasibility
28.28study of the economic and technical viability
28.29of developing a multistream renewable
28.30energy biofuels demonstration facility
28.31on Bois Forte Reservation land to utilize
28.32existing forest resources, woody biomass,
28.33and cellulosic material to produce biofuels or
28.34bioenergy. The grant recipient must actively
28.35participate in the Agricultural Utilization
28.36Research Institute's Renewable Energy
29.1Roundtable and no later than February 1,
29.22009, must report to the house and senate
29.3committees with jurisdiction over agriculture
29.4finance. This is a onetime appropriation and
29.5is available until spent.
29.6$300,000 the first year is for a grant to
29.7the White Earth Band of Chippewa for a
29.8feasibility study of a renewable energy
29.9biofuels production, research, and production
29.10facility on the White Earth Reservation in
29.11Mahnomen County. The grant must be used
29.12by the White Earth Band and the University
29.13of Minnesota to conduct a detailed feasibility
29.14study of the economic and technical viability
29.15of (1) developing a multistream renewable
29.16energy biofuels demonstration facility on
29.17White Earth Reservation land to utilize
29.18existing forest resources, woody biomass,
29.19and cellulosic material to produce biofuels or
29.20bioenergy, and (2) developing, harvesting,
29.21and marketing native prairie plants and seeds
29.22for bioenergy production. The grant recipient
29.23must actively participate in the Agricultural
29.24Utilization Research Institute's Renewable
29.25Energy Roundtable and no later than
29.26February 1, 2009, must report to the house
29.27and senate committees with jurisdiction
29.28over agriculture finance. This is a onetime
29.29appropriation and is available until spent.
29.30$200,000 the first year is for a grant to the Elk
29.31River Economic Development Authority for
29.32upfront engineering and a feasibility study
29.33of the Elk River renewable fuels facility.
29.34The facility must use a plasma gasification
29.35process to convert primarily cellulosic
29.36material, but may also use plastics and other
30.1components from municipal solid waste, as
30.2feedstock for the production of methanol
30.3for use in biodiesel production facilities.
30.4Any unencumbered balance in fiscal year
30.52008 does not cancel but is available for
30.6fiscal year 2009. Notwithstanding Minnesota
30.7Statutes, section 16A.285, the agency must
30.8not transfer this appropriation. The grant
30.9recipient must actively participate in the
30.10Agricultural Utilization Research Institute's
30.11Renewable Energy Roundtable and no
30.12later than February 1, 2009, must report
30.13to the house and senate committees with
30.14jurisdiction over agriculture finance. This is
30.15a onetime appropriation and is available until
30.16spent.
30.17$200,000 the first year is for a grant to
30.18Chisago County to conduct a detailed
30.19feasibility study of the economic and
30.20technical viability of developing a
30.21multistream renewable energy biofuels
30.22demonstration facility in Chisago, Isanti,
30.23or Pine County to utilize existing forest
30.24resources, woody biomass, and cellulosic
30.25material to produce biofuels or bioenergy.
30.26Chisago County may expend funds to Isanti
30.27and Pine Counties and the University of
30.28Minnesota for any costs incurred as part
30.29of the study. The feasibility study must
30.30consider the capacity of: (1) the seed bank
30.31at Wild River State Park to expand the
30.32existing prairie grass, woody biomass, and
30.33cellulosic material resources in Chisago,
30.34Isanti, and Pine Counties; (2) willing and
30.35interested landowners in Chisago, Isanti, and
30.36Pine Counties to grow cellulosic materials;
31.1and (3) the Minnesota Conservation Corps,
31.2the sentence to serve program, and other
31.3existing workforce programs in east central
31.4Minnesota to contribute labor to these efforts.
31.5The grant recipient must actively participate
31.6in the Agricultural Utilization Research
31.7Institute's Renewable Energy Roundtable and
31.8no later than February 1, 2009, must report
31.9to the house and senate committees with
31.10jurisdiction over agriculture finance. This is
31.11a onetime appropriation and is available until
31.12spent.
31.13EFFECTIVE DATE.This section is effective the day following final enactment.

31.14    Sec. 31. Laws 2007, chapter 45, article 1, section 3, subdivision 5, as amended by
31.15Laws 2008, chapter 297, article 1, section 65, is amended to read:

31.16 31.17

Subd. 5. Administration and Financial Assistance

7,338,000

6,751,000

31.18$1,005,000 the first year and $1,005,000
31.19the second year are for continuation of
31.20the dairy development and profitability
31.21enhancement and dairy business planning
31.22grant programs established under Laws 1997,
31.23chapter 216, section 7, subdivision 2, and
31.24Laws 2001, First Special Session chapter 2,
31.25section 9, subdivision 2 . The commissioner
31.26may allocate the available sums among
31.27permissible activities, including efforts to
31.28improve the quality of milk produced in the
31.29state in the proportions that the commissioner
31.30deems most beneficial to Minnesota's dairy
31.31farmers. The commissioner must submit a
31.32work plan detailing plans for expenditures
31.33under this program to the chairs of the
31.34house and senate committees dealing with
31.35agricultural policy and budget on or before
32.1the start of each fiscal year. If significant
32.2changes are made to the plans in the course
32.3of the year, the commissioner must notify the
32.4chairs.
32.5$50,000 the first year and $50,000 the
32.6second year are for the Northern Crops
32.7Institute. These appropriations may be spent
32.8to purchase equipment.
32.9$19,000 the first year and $19,000 the
32.10second year are for a grant to the Minnesota
32.11Livestock Breeders Association.
32.12$250,000 the first year and $250,000 the
32.13second year are for grants to the Minnesota
32.14Agricultural Education Leadership Council
32.15for programs of the council under Minnesota
32.16Statutes, chapter 41D.
32.17$600,000 the first year is for grants for
32.18fertilizer research as awarded by the
32.19Minnesota Agricultural Fertilizer Research
32.20and Education Council under Minnesota
32.21Statutes, section 18C.71. The amount
32.22available to the commissioner pursuant
32.23to Minnesota Statutes, section 18C.70,
32.24subdivision 2 , for administration of this
32.25activity is available until February 1, 2009,
32.26by which time the commissioner shall
32.27report to the house and senate committees
32.28with jurisdiction over agriculture finance.
32.29The report must include the progress and
32.30outcome of funded projects as well as the
32.31sentiment of the council concerning the need
32.32for additional research funded through an
32.33industry checkoff fee. The amount available
32.34for grants is available until June 30, 2011.
33.1$465,000 the first year and $465,000 the
33.2second year are for payments to county and
33.3district agricultural societies and associations
33.4under Minnesota Statutes, section 38.02,
33.5subdivision 1 . Aid payments to county and
33.6district agricultural societies and associations
33.7shall be disbursed not later than July 15 of
33.8each year. These payments are the amount of
33.9aid owed by the state for an annual fair held
33.10in the previous calendar year.
33.11$65,000 the first year and $65,000 the second
33.12year are for annual grants to the Minnesota
33.13Turf Seed Council for basic and applied
33.14research on the improved production of
33.15forage and turf seed related to new and
33.16improved varieties. The grant recipient may
33.17subcontract with a qualified third party for
33.18some or all of the basic and applied research.
33.19$500,000 the first year and $500,000 the
33.20second year are for grants to Second Harvest
33.21Heartland on behalf of Minnesota's six
33.22Second Harvest food banks for the purchase
33.23of milk for distribution to Minnesota's food
33.24shelves and other charitable organizations
33.25that are eligible to receive food from the food
33.26banks. Milk purchased under the grants must
33.27be acquired from Minnesota milk processors
33.28and based on low-cost bids. The milk must be
33.29allocated to each Second Harvest food bank
33.30serving Minnesota according to the formula
33.31used in the distribution of United States
33.32Department of Agriculture commodities
33.33under The Emergency Food Assistance
33.34Program (TEFAP). Second Harvest
33.35Heartland must submit quarterly reports
33.36to the commissioner on forms prescribed
34.1by the commissioner. The reports must
34.2include, but are not limited to, information
34.3on the expenditure of funds, the amount
34.4of milk purchased, and the organizations
34.5to which the milk was distributed. Second
34.6Harvest Heartland may enter into contracts
34.7or agreements with food banks for shared
34.8funding or reimbursement of the direct
34.9purchase of milk. Each food bank receiving
34.10money from this appropriation may use up to
34.11two percent of the grant for administrative
34.12expenses.
34.13$100,000 the first year and $100,000 the
34.14second year are for transfer to the Board of
34.15Trustees of the Minnesota State Colleges and
34.16Universities for mental health counseling
34.17support to farm families and business
34.18operators through farm business management
34.19programs at Central Lakes College and
34.20Ridgewater College.
34.21$18,000 the first year and $18,000 the
34.22second year are for grants to the Minnesota
34.23Horticultural Society.
34.24$50,000 is for a grant to the University of
34.25Minnesota, Department of Horticultural
34.26Science, Enology Laboratory, to upgrade
34.27and purchase instrumentation to allow
34.28rapid and accurate measurement of enology
34.29components. This is a onetime appropriation
34.30and is available until expended.
34.31EFFECTIVE DATE.This section is effective the day following final enactment.

34.32    Sec. 32. Laws 2008, chapter 296, article 1, section 25, the effective date, is amended to
34.33read:
35.1EFFECTIVE DATE.This section is effective June 1, 2010 2011.
35.2EFFECTIVE DATE.This section is effective the day following final enactment.

35.3    Sec. 33. Laws 2009, chapter 94, article 1, section 3, subdivision 5, is amended to read:

35.4 35.5

Subd. 5.Administration and Financial Assistance

8,177,000

7,037,000

35.6	Appropriations by Fund
35.7		2010	2011
35.8	General	7,377,000	6,237,000
35.9	Agricultural	800,000	800,000

35.10$780,000 the first year and $755,000 the
35.11second year are for continuation of the dairy
35.12development and profitability enhancement
35.13and dairy business planning grant programs
35.14established under Laws 1997, chapter
35.15216, section 7, subdivision 2, and Laws
35.162001, First Special Session chapter 2,
35.17section 9, subdivision 2. The commissioner
35.18may allocate the available sums among
35.19permissible activities, including efforts to
35.20improve the quality of milk produced in the
35.21state in the proportions that the commissioner
35.22deems most beneficial to Minnesota's dairy
35.23farmers. The commissioner must submit a
35.24work plan detailing plans for expenditures
35.25under this program to the chairs of the house
35.26of representatives and senate committees
35.27dealing with agricultural policy and budget
35.28on or before the start of each fiscal year. If
35.29significant changes are made to the plans
35.30in the course of the year, the commissioner
35.31must notify the chairs.
35.32$50,000 the first year and $50,000 the
35.33second year are for the Northern Crops
36.1Institute. These appropriations may be spent
36.2to purchase equipment.
36.3$19,000 the first year and $19,000 the
36.4second year are for a grant to the Minnesota
36.5Livestock Breeders Association.
36.6$250,000 the first year and $250,000 the
36.7second year are for grants to the Minnesota
36.8Agricultural Education and Leadership
36.9Council for programs of the council under
36.10Minnesota Statutes, chapter 41D.
36.11$474,000 the first year and $474,000 the
36.12second year are for payments to county and
36.13district agricultural societies and associations
36.14under Minnesota Statutes, section 38.02,
36.15subdivision 1 . Aid payments to county and
36.16district agricultural societies and associations
36.17shall be disbursed no later than July 15 of
36.18each year. These payments are the amount of
36.19aid from the state for an annual fair held in
36.20the previous calendar year.
36.21$1,000 the first year and $1,000 the second
36.22year are for grants to the Minnesota State
36.23Poultry Association.
36.24$65,000 the first year and $65,000 the second
36.25year are for annual grants to the Minnesota
36.26Turf Seed Council for basic and applied
36.27research on the improved production of
36.28forage and turf seed related to new and
36.29improved varieties. The grant recipient may
36.30subcontract with a qualified third party for
36.31some or all of the basic and applied research.
36.32$50,000 the first year and $50,000 the
36.33second year are for annual grants to the
36.34Minnesota Turf Seed Council for basic
36.35and applied agronomic research on native
37.1plants, including plant breeding, nutrient
37.2management, pest management, disease
37.3management, yield, and viability. The grant
37.4recipient may subcontract with a qualified
37.5third party for some or all of the basic
37.6or applied research. The grant recipient
37.7must actively participate in the Agricultural
37.8Utilization Research Institute's Renewable
37.9Energy Roundtable and no later than
37.10February 1, 2011, must report to the house of
37.11representatives and senate committees with
37.12jurisdiction over agriculture finance.
37.13$500,000 the first year and $500,000 the
37.14second year are for grants to Second Harvest
37.15Heartland on behalf of Minnesota's six
37.16Second Harvest food banks for the purchase
37.17of milk for distribution to Minnesota's food
37.18shelves and other charitable organizations
37.19that are eligible to receive food from the food
37.20banks. Milk purchased under the grants must
37.21be acquired from Minnesota milk processors
37.22and based on low-cost bids. The milk must be
37.23allocated to each Second Harvest food bank
37.24serving Minnesota according to the formula
37.25used in the distribution of United States
37.26Department of Agriculture commodities
37.27under The Emergency Food Assistance
37.28Program (TEFAP). Second Harvest
37.29Heartland must submit quarterly reports
37.30to the commissioner on forms prescribed
37.31by the commissioner. The reports must
37.32include, but are not limited to, information
37.33on the expenditure of funds, the amount
37.34of milk purchased, and the organizations
37.35to which the milk was distributed. Second
37.36Harvest Heartland may enter into contracts
38.1or agreements with food banks for shared
38.2funding or reimbursement of the direct
38.3purchase of milk. Each food bank receiving
38.4money from this appropriation may use up to
38.5two percent of the grant for administrative
38.6expenses.
38.7$1,000,000 the first year is for the agricultural
38.8growth, research, and innovation program
38.9in Minnesota Statutes, section 41A.12.
38.10Priority must be given to livestock programs
38.11under Minnesota Statutes, section 17.118.
38.12Priority for livestock grants shall be given
38.13to persons who are beginning livestock
38.14producers and livestock producers who are
38.15rebuilding after a disaster that was due to
38.16natural or other unintended conditions. The
38.17commissioner may use up to 4.5 percent
38.18of this appropriation for costs incurred to
38.19administer the program. Any unencumbered
38.20balance does not cancel at the end of the first
38.21year and is available in the second year.
38.22$100,000 the first year and $100,000 the
38.23second year are for transfer to the Board of
38.24Trustees of the Minnesota State Colleges and
38.25Universities for mental health counseling
38.26support to farm families and business
38.27operators through farm business management
38.28programs at Central Lakes College and
38.29Ridgewater College.
38.30$18,000 the first year and $18,000 the
38.31second year are for grants to the Minnesota
38.32Horticultural Society.
38.33Notwithstanding Minnesota Statutes,
38.34section 18C.131, $800,000 the first year
38.35and $800,000 the second year are from the
39.1fertilizer account in the agricultural fund
39.2for grants for fertilizer research as awarded
39.3by the Minnesota Agricultural Fertilizer
39.4Research and Education Council under
39.5Minnesota Statutes, section 18C.71. The
39.6amount appropriated in either fiscal year must
39.7not exceed 57 percent of the inspection fee
39.8revenue collected under Minnesota Statutes,
39.9section 18C.425, subdivision 6, during the
39.10previous fiscal year. No later than February
39.111, 2011, the commissioner shall report to
39.12the legislative committees with jurisdiction
39.13over agriculture finance. The report must
39.14include the progress and outcome of funded
39.15projects as well as the sentiment of the
39.16council concerning the need for additional
39.17research funds. The appropriation for the
39.18first year is available until June 30, 2013,
39.19and the appropriation for the second year is
39.20available until June 30, 2014.
39.21$60,000 the first year is for a transfer to the
39.22University of Minnesota Extension Service
39.23for farm-to-school grants to school districts
39.24in Minneapolis, Moorhead, White Earth, and
39.25Willmar.
39.26$30,000 is for star farms program
39.27development. The commissioner, in
39.28consultation with other state and local
39.29agencies, farm groups, conservation
39.30groups, legislators, and other interested
39.31persons, shall develop a proposal for a star
39.32farms program. By January 15, 2010, the
39.33commissioner shall submit the proposal to
39.34the legislative committees and divisions
39.35with jurisdiction over agriculture and
39.36environmental policy and finance. This is a
40.1onetime appropriation. * (The preceding
40.2paragraph beginning "$30,000 is for star
40.3farms program" was indicated as vetoed
40.4by the governor.)
40.5$25,000 the first year is for the administration
40.6of the Feeding Minnesota Task Force, under
40.7new Minnesota Statutes, section 31.97. This
40.8is a onetime appropriation.
40.9EFFECTIVE DATE.This section is effective the day following final enactment.

40.10    Sec. 34. TERMINAL CAPACITY; REPORT.
40.11The commissioner of agriculture, with assistance from the Office of Energy Security,
40.12shall determine the total propane and anhydrous ammonia terminal capacity located in
40.13the state and within 100 miles of the state's borders. The commissioner shall also use
40.14projected grain yields and other relevant factors to estimate total agricultural demand
40.15for propane and anhydrous ammonia in this state in the year 2020 and shall develop a
40.16detailed plan for fully and economically satisfying this anticipated demand. No later than
40.17January 15, 2011, the commissioner shall present the report to the legislative committees
40.18with jurisdiction over agriculture finance.

40.19    Sec. 35. DAIRY RESEARCH AND EDUCATION FACILITY;
40.20COLLABORATION.
40.21The commissioner of agriculture shall convene one or more meetings with milk
40.22producers, other industry stakeholders, and representatives of the University of Minnesota
40.23and Minnesota State Colleges and Universities System whose work relates to the dairy
40.24industry to consider the elements of a dairy research and education facility which would
40.25represent a partnership between higher education institutions and the dairy industry. No
40.26later than February 1, 2011, the commissioner shall provide a report on facility and
40.27financing options to the legislative committees with jurisdiction over agriculture finance.

40.28    Sec. 36. BIOENERGY DEVELOPMENT; REPORT.
40.29The commissioner of agriculture shall actively pursue federal and other resources
40.30available to promote and achieve greater production and use of biofuels in this state,
40.31including but not limited to increasing the availability of retail fuel dispensers for E85 and
40.32intermediate ethanol-gasoline blends. No later than February 15, 2011, the commissioner
41.1shall report on activities and accomplishments under this section to the legislative
41.2committees with jurisdiction over agriculture finance.

41.3    Sec. 37. REPEALER.
41.4Minnesota Statutes 2008, section 17.231, is repealed.

41.5ARTICLE 2

41.6VETERANS

41.7    Section 1. Minnesota Statutes 2008, section 1.141, is amended by adding a subdivision
41.8to read:
41.9    Subd. 6. Folding of the state flag for presentation or display. The following
41.10procedures constitute the proper way to fold the Minnesota State Flag for presentation or
41.11display. Fold the flag four times lengthwise so that one section displays the three stars
41.12of the state crest and the text "L'Etoile du Nord." Fold each side behind the displayed
41.13section at a 90-degree angle so that the display section forms a triangle. Take the section
41.14ending with the hoist and fold it at a 90-degree angle across the bottom of the display
41.15section and then fold the hoist back over so it is aligned with the middle of the display
41.16section. Fold the other protruding section directly upwards so that its edge is flush with
41.17the display section and then fold it upwards along a 45-degree angle so that a mirror
41.18of the display section triangle is formed. Fold the mirror section in half from the point
41.19upwards, then fold the remaining portion upwards, tucking it between the display section
41.20and the remainder of the flag.

41.21    Sec. 2. Minnesota Statutes 2008, section 1.141, is amended by adding a subdivision to
41.22read:
41.23    Subd. 7. Folding of the state flag for storage. When folding the Minnesota State
41.24Flag for storage, the proper procedure is to fold and store the flag in the same manner as
41.25the national colors.

41.26    Sec. 3. Minnesota Statutes 2009 Supplement, section 190.19, subdivision 2a, is
41.27amended to read:
41.28    Subd. 2a. Uses; veterans. Money appropriated to the Department of Veterans
41.29Affairs from the Minnesota "Support Our Troops" account may be used for:
41.30    (1) grants to veterans service organizations;
41.31    (2) outreach to underserved veterans; and
41.32(3) providing services and programs for veterans and their families; and
42.1(3) (4) transfers to the vehicle services account for Gold Star license plates under
42.2section 168.1253.

42.3    Sec. 4. Minnesota Statutes 2008, section 197.455, is amended by adding a subdivision
42.4to read:
42.5    Subd. 5a. Teacher hiring. (a) Any public school under the state's Education Code
42.6that chooses at any time to use a 100-point hiring method to evaluate applicants for
42.7teaching positions is subject to the requirements of subdivisions 4 and 5 for determining
42.8veterans preference points.
42.9(b) Any public school under the state's Education Code opting at any time not to use
42.10a 100-point hiring method to evaluate applicants for teaching positions is exempt from
42.11the requirements of subdivisions 4 and 5 for determining veterans preference points, but
42.12must instead grant to any veteran who applies for a teaching position and who has proper
42.13licensure for that position an interview for that position.

42.14    Sec. 5. Minnesota Statutes 2009 Supplement, section 197.46, is amended to read:
42.15197.46 VETERANS PREFERENCE ACT; REMOVAL FORBIDDEN; RIGHT
42.16OF MANDAMUS.
42.17Any person whose rights may be in any way prejudiced contrary to any of the
42.18provisions of this section, shall be entitled to a writ of mandamus to remedy the wrong.
42.19No person holding a position by appointment or employment in the several counties,
42.20cities, towns, school districts and all other political subdivisions in the state, who is a
42.21veteran separated from the military service under honorable conditions, shall be removed
42.22from such position or employment except for incompetency or misconduct shown after a
42.23hearing, upon due notice, upon stated charges, in writing.
42.24Any veteran who has been notified of the intent to discharge the veteran from an
42.25appointed position or employment pursuant to this section shall be notified in writing of
42.26such intent to discharge and of the veteran's right to request a hearing within 60 days of
42.27receipt of the notice of intent to discharge. The failure of a veteran to request a hearing
42.28within the provided 60-day period shall constitute a waiver of the right to a hearing. Such
42.29failure shall also waive all other available legal remedies for reinstatement.
42.30Request for a hearing concerning such a discharge shall be made in writing and
42.31submitted by mail or personal service to the employment office of the concerned employer
42.32or other appropriate office or person.
42.33In all governmental subdivisions having an established civil service board or
42.34commission, or merit system authority, such hearing for removal or discharge shall be
43.1held before such civil service board or commission or merit system authority. Where no
43.2such civil service board or commission or merit system authority exists, such hearing
43.3shall be held by a board of three persons appointed as follows: one by the governmental
43.4subdivision, one by the veteran, and the third by the two so selected. In the event the two
43.5persons so selected do not appoint the third person within ten days after the appointment
43.6of the last of the two, then the judge of the district court of the county wherein the
43.7proceeding is pending, or if there be more than one judge in said county then any judge in
43.8chambers, shall have jurisdiction to appoint, and upon application of either or both of the
43.9two so selected shall appoint, the third person to the board and the person so appointed
43.10by the judge with the two first selected shall constitute the board. The veteran may
43.11appeal from the decision of the board upon the charges to the district court by causing
43.12written notice of appeal, stating the grounds thereof, to be served upon the governmental
43.13subdivision or officer making the charges within 15 days after notice of the decision
43.14and by filing the original notice of appeal with proof of service thereof in the office of
43.15the court administrator of the district court within ten days after service thereof. Nothing
43.16in section 197.455 or this section shall be construed to apply to the position of private
43.17secretary, superintendent of schools, or one chief deputy of any elected official or head of
43.18a department, or to any person holding a strictly confidential relation to the appointing
43.19officer. Nothing in this section shall be construed to apply to the position of teacher.
43.20The burden of establishing such relationship shall be upon the appointing officer in all
43.21proceedings and actions relating thereto.
43.22All officers, boards, commissions, and employees shall conform to, comply with,
43.23and aid in all proper ways in carrying into effect the provisions of section 197.455 and this
43.24section notwithstanding any laws, charter provisions, ordinances or rules to the contrary.
43.25Any willful violation of such sections by officers, officials, or employees is a misdemeanor.

43.26    Sec. 6. Minnesota Statutes 2008, section 197.481, subdivision 1, is amended to read:
43.27    Subdivision 1. Petition. A veteran, as defined by section 197.447, who has been
43.28denied rights by the state or any political subdivision, municipality, or other public agency
43.29of the state as authorized by the Veterans Preference Act under section 43A.11, 197.46,
43.30197.48, or 197.455 may petition the commissioner of veterans affairs for an order directing
43.31the agency to grant the veteran such relief the commissioner finds justified by said statutes.
43.32The petition shall be submitted via United States mail and contain:
43.33(1) the name, address, telephone number, and acknowledged notarized original
43.34signature of the veteran;
44.1(2) the names, telephone numbers, and addresses of all agencies and persons that
44.2will be directly affected if the petition is granted;
44.3(3) a concise statement of the facts giving rise to the veteran's rights and a concise
44.4statement showing the manner in which rights were denied;
44.5(4) a statement of the relief requested.; and
44.6(5) a copy of the veteran's Form DD214 (Separation or Discharge from Active Duty).

44.7    Sec. 7. Minnesota Statutes 2008, section 197.481, subdivision 2, is amended to read:
44.8    Subd. 2. Service. Upon receipt and authorization verification of a complete petition
44.9herein, the commissioner shall serve a copy of same, by certified mail, on all agencies and
44.10persons named therein and on such other agencies or persons as in the judgment of the
44.11commissioner should in justice be parties to the proceeding. The veteran and all agencies
44.12and persons served shall be parties to the proceeding.

44.13    Sec. 8. Minnesota Statutes 2008, section 197.481, subdivision 4, is amended to read:
44.14    Subd. 4. Hearing. The commissioner shall hold schedule a hearing on the petition
44.15of any party to be held or conducted within 20 120 days of serving, or being served with
44.16the authorized and complete petition. The veteran may demand an opportunity to be heard
44.17at a time set by the commissioner. A party who fails to demand such hearing within 20
44.18days shall be heard only by permission of the commissioner, except that if any party
44.19demands to be heard At the hearing, all parties shall have the right to be heard. A hearing
44.20hereunder shall be conducted and orders issued in accord with sections 14.57 to 14.60
44.21and 14.62, at the office of the commissioner or at a place the commissioner designates.
44.22The commissioner shall notify all parties, by certified mail, of the date, time, and place
44.23of the hearing.

44.24    Sec. 9. Minnesota Statutes 2008, section 197.60, subdivision 1, is amended to read:
44.25    Subdivision 1. Appointment; administrative support. The county board of any
44.26county except Clay County, or the county boards of any two or more counties acting
44.27pursuant to the provisions of section 197.602, shall appoint a veterans service officer
44.28and shall provide necessary clerical help, office space, equipment, and supplies for the
44.29officer, together with reimbursement for mileage and other traveling expenses necessarily
44.30incurred in the performance of duties; and may appoint one or more assistant veterans
44.31service officers who shall have the qualifications prescribed in are qualified under section
44.32197.601 . The county board of Clay County may appoint a veterans service officer and
44.33assistant veterans service officers as provided in this subdivision. The county board or
45.1boards shall provide necessary clerical help, office space, equipment, and supplies for the
45.2officer, and reimbursement for mileage and other traveling expenses necessarily incurred
45.3in the performance of duties. Subject to the direction and control of the veterans service
45.4officer, the assistant veterans service officer may exercise all the powers, and shall perform
45.5the duties, of the veterans service officer, and shall be is subject to all the provisions of
45.6sections 197.60 to 197.606 relating to a veterans service officer. Every county officer and
45.7agency shall cooperate with the veterans service officer and shall provide the officer with
45.8information necessary in connection with the performance of duties.
45.9EFFECTIVE DATE.This section is effective July 1, 2010.

45.10    Sec. 10. Minnesota Statutes 2008, section 197.601, is amended to read:
45.11197.601 QUALIFICATIONS OF VETERANS SERVICE OFFICERS.
45.12No person shall be appointed a veterans service officer or an assistant county
45.13veterans service officer under sections 197.60 to 197.606 without the following
45.14qualifications unless the person is:
45.15(1) residence in a resident of the state of Minnesota;
45.16(2) citizenship in a citizen of the United States; and
45.17(3) a veteran, as defined in section 197.447;.
45.18(4) education and training for the duties of veterans service officer;
45.19(5) knowledge of the law and the regulations and rulings of the United States
45.20Veterans Administration applicable to cases before it and the administration thereof.
45.21In addition, a person accepting appointment to the position of county veterans
45.22service officer or assistant county veterans service officer or other equivalent assistant
45.23position must agree to receive, within six months of the appointment, training and
45.24education for the duties of the position, including development of an effective working
45.25knowledge of relevant laws, rules, and regulations pertaining to the United States
45.26Department of Veterans Affairs, as applicable to veterans cases before the department and
45.27the administration of those cases.

45.28    Sec. 11. Minnesota Statutes 2008, section 197.605, is amended to read:
45.29197.605 SUPERVISION DEPARTMENT AS A RESOURCE TO COUNTIES.
45.30    Subdivision 1. Methods of operation Resources available. Every veterans service
45.31officer appointed under sections 197.60 to 197.606 shall be under the general supervision
45.32of the commissioner of veterans affairs as to methods of operation. The commissioner of
45.33veterans affairs shall make resources available within the Department of Veterans Affairs
46.1to every county that operates a county veterans service office, to assist the county with
46.2maintaining efficient and effective services to veterans. To receive available resources
46.3from the department, a county must formally request them from the commissioner and
46.4invite the commissioner or the commissioner's designee or designees into the county
46.5as necessary to provide those resources. The commissioner shall consult with the
46.6Association of Minnesota Counties and the Minnesota Association of County Veterans
46.7Service Officers in developing a list of resources available to counties in support of their
46.8county veterans service offices.
46.9    Subd. 2. Use of agencies to present claims. Every veterans service officer and
46.10assistant veterans service officer appointed under sections 197.60 to 197.606 shall use
46.11the Minnesota Department of Veterans Affairs or any organization recognized by the
46.12United States Department of Veterans Administration Affairs, as may be designated by the
46.13veteran by power of attorney, in the presentation of claims to the United States Department
46.14of Veterans Administration Affairs for the benefits referred to in section 197.603.
46.15    Subd. 3. Rules. The commissioner of veterans affairs shall have authority to
46.16prescribe such rules as are necessary for compliance with this section and the efficient
46.17uniform administration of sections 197.60 to 197.606. Such rules shall not apply to the
46.18appointment, tenure, compensation, or working conditions of a veterans service officer
46.19appointed under sections 197.60 to 197.606.
46.20    Subd. 4. Certification. The commissioner of veterans affairs shall establish a
46.21certification process for veterans service officers. In doing so, the commissioner shall
46.22consult with the Minnesota Association of County Veterans Service Officers.

46.23    Sec. 12. Minnesota Statutes 2008, section 197.606, is amended to read:
46.24197.606 CLASSED AS COUNTY EMPLOYEES.
46.25Veterans service officers and assistant veterans service officers appointed under
46.26sections 197.60 to 197.606 are employees of the counties by which they are employed, and
46.27are under the exclusive jurisdiction and control of such those counties and the Department
46.28of Veterans Affairs as herein provided.

46.29    Sec. 13. Minnesota Statutes 2008, section 197.609, subdivision 1, is amended to read:
46.30    Subdivision 1. Establishment and administration. An education program for
46.31county veterans service officers is established to be administered by the commissioner of
46.32veterans affairs, with assistance and advice from the Minnesota Association of County
46.33Veterans Service Officers.

47.1    Sec. 14. Minnesota Statutes 2008, section 197.609, subdivision 2, is amended to read:
47.2    Subd. 2. Eligibility. To be eligible for the program in this section, a person must
47.3currently be employed as a county veterans service officer or assistant county veterans
47.4service officer, as authorized by sections 197.60 to 197.606, and be certified to serve in
47.5that position by the commissioner of veterans affairs or be serving a probationary period
47.6as authorized by section 197.60, subdivision 2.

47.7    Sec. 15. Minnesota Statutes 2008, section 197.75, subdivision 1, is amended to read:
47.8    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
47.9section.
47.10    (b) "Commissioner" means the commissioner of veterans affairs.
47.11    (c) "Deceased veteran" means a veteran who was a Minnesota resident within six
47.12months of the time of the person's entry into the United States armed forces and who has
47.13died as a result of that the person's military service, as determined by the United States
47.14Veterans Administration, and who was a resident of this state: (1) within six months of
47.15entering the United States armed forces, or (2) for the six months preceding the veteran's
47.16date of death.
47.17    (d) "Eligible child" means a person who:
47.18    (1) is the natural or adopted son or daughter child or stepchild of a deceased veteran;
47.19and
47.20    (2) is a student making satisfactory academic progress at an eligible institution
47.21of higher education.
47.22    (e) "Eligible institution" means a postsecondary educational institution located in
47.23this state that either (1) is operated by this state, or (2) is operated publicly or privately
47.24and, as determined by the office, maintains academic standards substantially equivalent
47.25to those of comparable institutions operated in this state.
47.26    (f) "Eligible spouse" means the surviving spouse of a deceased veteran.
47.27    (g) "Eligible veteran" means a veteran who:
47.28    (1) is a student making satisfactory academic progress at an eligible institution
47.29of higher education;
47.30    (2) had Minnesota as the person's state of residence at the time of the person's
47.31enlistment or any reenlistment into the United States armed forces, as shown by the
47.32person's federal form DD-214 or other official documentation to the satisfaction of the
47.33commissioner;
47.34    (3) except for benefits under this section, has no remaining military or veteran-related
47.35educational assistance benefits for which the person may have been entitled; and
48.1    (4) while using the educational assistance authorized in this section, remains a
48.2resident student as defined in section 136A.101, subdivision 8.
48.3    (h) "Satisfactory academic progress" has the meaning given in section 136A.101,
48.4subdivision 10.
48.5    (i) "Student" has the meaning given in section 136A.101, subdivision 7.
48.6    (j) "Veteran" has the meaning given in section 197.447.
48.7EFFECTIVE DATE.This section is effective July 1, 2010, for educational benefits
48.8provided to an eligible child or eligible spouse on or after that date.

48.9    Sec. 16. PLANNING NEW VETERANS CEMETERIES.
48.10The commissioner of veterans affairs shall determine a suitable site and plan for
48.11three new state veterans cemeteries, one to be located in northeastern Minnesota, one to
48.12be located in southeastern Minnesota, and one to be located in southwestern Minnesota.
48.13In determining the site for a cemetery, the commissioner shall consider available public
48.14land options and shall seek proposals for donated land from interested counties, local
48.15communities, civic organizations, veterans service organizations, and individuals. For
48.16the veterans cemetery in southwestern Minnesota, the commissioner must work with the
48.17commissioner of natural resources to secure a cemetery site at Fort Ridgely State Park, if
48.18feasible, or on other public land in that immediate vicinity.
48.19The commissioner's planning process for a state veterans cemetery must include, at a
48.20minimum, the following actions:
48.21(1) determining the need for the cemetery;
48.22(2) investigating the availability of suitable land for the cemetery;
48.23(3) assessment of impacts of the cemetery;
48.24(4) encouragement of support from veteran service organizations and local
48.25governments; and
48.26(5) preparation and submission of a preapplication for a grant from the United States
48.27Department of Veterans Affairs for commitment of funding for establishing the cemetery.
48.28By January 15, 2011, the commissioner shall report to the chair and ranking minority
48.29member of the house of representatives and senate committees having responsibility for
48.30veterans affairs with a report of the commissioner's progress in implementing this section.

48.31    Sec. 17. NONCOMPLIANCE.
48.32A county that on July 1, 2010, is noncompliant with regard to the qualifications of
48.33an assistant county veterans service officer, under Minnesota Statutes, section 197.601,
49.1must comply with the requirements of that section no later than June 30, 2013, and must
49.2remain in compliance after that date.

49.3    Sec. 18. EFFECTIVE DATE.
49.4Sections 1, 2, and 16 are effective the day following final enactment. All other
49.5sections are effective July 1, 2010.