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HF 2678

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 04/15/2010 01:13pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to the operation of state government; changing certain provisions and
programs affecting agriculture and veterans affairs; authorizing and regulating
development and use of industrial hemp; clarifying certain terms and procedures;
changing certain record keeping provisions; requiring planning for additional
veterans cemeteries; appropriating money; amending Minnesota Statutes 2008,
sections 1.141, by adding subdivisions; 3.737, subdivision 4; 17.03, by adding a
subdivision; 18B.31, subdivision 5; 18B.36, subdivision 1; 18B.37, subdivision
4; 18J.01; 18J.02; 18J.03; 18J.04, subdivisions 1, 2, 3, 4; 18J.05, subdivisions
1, 2, 6; 18J.06; 18J.07, subdivisions 3, 4, 5; 18J.09; 18J.11, subdivision 1, by
adding a subdivision; 28A.082, subdivision 1; 35.244, subdivisions 1, 2; 152.01,
subdivision 9; 197.455, by adding a subdivision; 197.481, subdivisions 1, 2, 4;
197.60, subdivision 1; 197.601; 197.605; 197.606; 197.609, subdivisions 1,
2; 197.75, subdivision 1; 239.092; 239.093; 239.791, by adding subdivisions;
336.9-531; 336A.08, subdivisions 1, 4; 336A.14; 375.30, subdivision 2; 500.221,
subdivisions 2, 4; 500.24, subdivision 2; 514.965, subdivision 2; 514.966,
subdivisions 5, 6, by adding a subdivision; Minnesota Statutes 2009 Supplement,
sections 3.737, subdivision 1; 18B.316, subdivision 10; 190.19, subdivision 2a;
197.46; 239.791, subdivisions 1, 1a; Laws 2007, chapter 45, article 1, section
3, subdivision 5, as amended; Laws 2008, chapter 296, article 1, section 25;
Laws 2009, chapter 94, article 1, section 3, subdivision 5; proposing coding
for new law in Minnesota Statutes, chapter 38; proposing coding for new law
as Minnesota Statutes, chapter 18K; repealing Minnesota Statutes 2008, section
17.231; Laws 2009, chapter 94, article 1, section 106.

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

ARTICLE 1

AGRICULTURE

Section 1.

Minnesota Statutes 2009 Supplement, section 3.737, subdivision 1, is
amended to read:


Subdivision 1.

Compensation required.

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

(b) deleted text beginEither the agent or thedeleted text endnew text begin Anew text end conservation officernew text begin, an official from the Animal and
Plant Health Inspection Service of the United States Department of Agriculture, or a peace
officer from the county sheriff's office
new text end must make a personal inspection of the sitenew text begin and
submit a report to the commissioner detailing the results of the investigation
new text end. deleted text beginThe agent or
the conservation officer
deleted text endnew text begin The investigatornew text end must take into account factors in addition to a
visual identification of a carcass when making a recommendation to the commissioner.
The commissioner, upon recommendation of the deleted text beginagent or conservation officerdeleted text endnew text begin investigatornew text end,
shall determine whether the livestock was destroyed by a gray wolf deleted text beginand any deficiencies in
the owner's adoption of the best management practices developed in subdivision 5. The
commissioner may authorize payment of claims only if the agent or the conservation
officer has recommended payment
deleted text end. The owner shall file a claim on forms provided by the
commissioner and available at the university extension agent's office.

Sec. 2.

Minnesota Statutes 2008, section 3.737, subdivision 4, is amended to read:


Subd. 4.

Payment; denial of compensation.

(a) If the commissioner finds that the
livestock owner has shown that the loss of the livestock was likely caused by a gray
wolf, the commissioner shall pay compensation as provided in this section and in the
rules of the department.

deleted text begin (b) For a gray wolf depredation claim submitted by a livestock owner after
September 1, 1999, the commissioner shall, based on the report from the university
extension agent and conservation officer, evaluate the claim for conformance with
the best management practices developed by the commissioner in subdivision 5. The
commissioner must provide to the livestock owner an itemized list of any deficiencies
in the livestock owner's adoption of best management practices that were noted in the
university extension agent's or conservation officer's report.
deleted text end

deleted text begin (c)deleted text endnew text begin (b)new text end If the commissioner denies compensation claimed by an owner under
this section, the commissioner shall issue a written decision based upon the available
evidence. It shall include specification of the facts upon which the decision is based
and the conclusions on the material issues of the claim. A copy of the decision shall
be mailed to the owner.

deleted text begin (d)deleted text endnew text begin (c)new text end A decision to deny compensation claimed under this section is not subject to
the contested case review procedures of chapter 14, but may be reviewed upon a trial de
novo in a court in the county where the loss occurred. The decision of the court may be
appealed as in other civil cases. Review in court may be obtained by filing a petition for
review with the administrator of the court within 60 days following receipt of a decision
under this section. Upon the filing of a petition, the administrator shall mail a copy to the
commissioner and set a time for hearing within 90 days of the filing.

Sec. 3.

Minnesota Statutes 2008, section 17.03, is amended by adding a subdivision to
read:


new text begin Subd. 11a. new text end

new text begin Permitting efficiency goal and report. new text end

new text begin (a) It is the goal of the
Department of Agriculture that environmental and resource management permits be
issued or denied within 150 days of the submission of a completed permit application.
The commissioner of agriculture shall establish management systems designed to achieve
the goal.
new text end

new text begin (b) The commissioner shall prepare semiannual permitting efficiency reports that
include statistics on meeting the goal in paragraph (a). The reports are due February 1
and August 1 of each year. For permit applications that have not met the goal, the report
must state the reasons for not meeting the goal, steps that will be taken to complete action
on the application, and the expected timeline. In stating the reasons for not meeting the
goal, the commissioner shall separately identify delays caused by the responsiveness of
the proposer, lack of staff, scientific or technical disagreements, or the level of public
engagement. The report must specify the number of days from initial submission of
the application to the day of determination that the application is complete. The report
for the final quarter of the fiscal year must aggregate the data for the year and assess
whether program or system changes are necessary to achieve the goal. The report must
be posted on the department Web site and submitted to the governor and the chairs of
the house of representatives and senate committees having jurisdiction over agriculture
policy and finance.
new text end

new text begin (c) The commissioner shall allow electronic submission of environmental review
and permit documents to the department.
new text end

Sec. 4.

Minnesota Statutes 2008, section 18B.31, subdivision 5, is amended to read:


Subd. 5.

Application fee.

(a) An application for a pesticide dealer license must be
accompanied by a nonrefundable application fee of $150.

(b) If an application for renewal of a pesticide dealer license is not filed before
deleted text begin January 1 of the year for whichdeleted text end the license deleted text beginis to be issueddeleted text endnew text begin expiresnew text end, an additional fee of deleted text begin$20deleted text endnew text begin
50 percent of the application fee
new text end must be paid by the applicant before new text beginthe commissioner
may issue
new text endthe license deleted text beginis issueddeleted text end.

Sec. 5.

Minnesota Statutes 2009 Supplement, section 18B.316, subdivision 10, is
amended to read:


Subd. 10.

Application fee.

(a) An application for an agricultural pesticide dealer
license, or a renewal of an agricultural pesticide dealer license, must be accompanied
by a nonrefundable fee of $150.

(b) If an application for renewal of an agricultural pesticide dealer license is not filed
before deleted text beginJanuary of the year for whichdeleted text end the license deleted text beginis to be issueddeleted text endnew text begin expiresnew text end, an additional fee of
50 percent of the application fee must be paid by the applicant before the commissioner
may issue the license.

Sec. 6.

Minnesota Statutes 2008, section 18B.36, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

(a) Except for a licensed commercial or
noncommercial applicator, only a certified private applicator may use a restricted use
pesticide to produce an agricultural commodity:

(1) as a traditional exchange of services without financial compensation;

(2) on a site owned, rented, or managed by the person or the person's employees; or

(3) when the private applicator is one of two or fewer employees and the owner or
operator is a certified private applicator or is licensed as a noncommercial applicator.

(b) A deleted text beginprivate applicatordeleted text endnew text begin personnew text end may not purchase a restricted use pesticide without
presenting a new text beginlicense card, new text endcertified private applicator cardnew text begin,new text end or the card number.

Sec. 7.

Minnesota Statutes 2008, section 18B.37, subdivision 4, is amended to read:


Subd. 4.

Storage, handling, new text beginincident response, new text endand disposal plan.

A deleted text begincommercialdeleted text endnew text begin
pesticide dealer, agricultural pesticide dealer, or a commercial
new text end, noncommercial, or
structural pest control applicator or the business that the applicator is employed by must
develop and maintain a plan that describes its pesticide storage, handling, new text beginincident
response,
new text endand disposal practices. The plan must be kept at a principal business site
or location within this state and must be submitted to the commissioner upon request
on forms provided by the commissioner. The plan must be available for inspection by
the commissioner.

Sec. 8.

Minnesota Statutes 2008, section 18J.01, is amended to read:


18J.01 DEFINITIONS.

(a) The definitions in sections 18G.02 deleted text beginanddeleted text endnew text begin,new text end 18H.02new text begin, and 18K.03new text end apply to this chapter.

(b) For purposes of this chapter, "associated rules" means rules adopted under this
chapter, chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, or sections 21.80 to 21.92.

Sec. 9.

Minnesota Statutes 2008, section 18J.02, is amended to read:


18J.02 DUTIES OF COMMISSIONER.

The commissioner shall administer and enforce this chapter, chapters 18G deleted text beginanddeleted text endnew text begin,new text end
18Hnew text begin, and 18Knew text end, sections 21.80 to 21.92, and associated rules.

Sec. 10.

Minnesota Statutes 2008, section 18J.03, is amended to read:


18J.03 CIVIL LIABILITY.

A person regulated by this chapter, chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, or sections 21.80
to 21.92, is civilly liable for any violation of one of those statutes or associated rules by
the person's employee or agent.

Sec. 11.

Minnesota Statutes 2008, section 18J.04, subdivision 1, is amended to read:


Subdivision 1.

Access and entry.

The commissioner, upon presentation of official
department credentials, must be granted immediate access at reasonable times to sites
where a person manufactures, distributes, uses, handles, disposes of, stores, or transports
seeds, plants, or other living or nonliving products or other objects regulated under chapter
18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92, or associated rules.

Sec. 12.

Minnesota Statutes 2008, section 18J.04, subdivision 2, is amended to read:


Subd. 2.

Purpose of entry.

(a) The commissioner may enter sites for:

(1) inspection of inventory and equipment for the manufacture, storage, handling,
distribution, disposal, or any other process regulated under chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end,
sections 21.80 to 21.92, or associated rules;

(2) sampling of sites, seeds, plants, products, or other living or nonliving objects that
are manufactured, stored, distributed, handled, or disposed of at those sites and regulated
under chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92, or associated rules;

(3) inspection of records related to the manufacture, distribution, storage, handling,
or disposal of seeds, plants, products, or other living or nonliving objects regulated under
chapter 18G deleted text beginordeleted text endnew text begin, new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92, or associated rules;

(4) investigating compliance with chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80
to 21.92, or associated rules; or

(5) other purposes necessary to implement chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections
21.80 to 21.92, or associated rules.

(b) The commissioner may enter any public or private premises during or after
regular business hours without notice of inspection when a suspected violation of chapter
18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92, or associated rules may threaten public
health or the environment.

Sec. 13.

Minnesota Statutes 2008, section 18J.04, subdivision 3, is amended to read:


Subd. 3.

Notice of inspection samples and analyses.

(a) The commissioner shall
provide the owner, operator, or agent in charge with a receipt describing any samples
obtained. If requested, the commissioner shall split any samples obtained and provide
them to the owner, operator, or agent in charge. If an analysis is made of the samples,
a copy of the results of the analysis must be furnished to the owner, operator, or agent
in charge within 30 days after an analysis has been performed. If an analysis is not
performed, the commissioner must notify the owner, operator, or agent in charge within 30
days of the decision not to perform the analysis.

(b) The sampling and analysis must be done according to methods provided for
under applicable provisions of chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92,
or associated rules. In cases not covered by those sections and methods or in cases
where methods are available in which improved applicability has been demonstrated the
commissioner may adopt appropriate methods from other sources.

Sec. 14.

Minnesota Statutes 2008, section 18J.04, subdivision 4, is amended to read:


Subd. 4.

Inspection requests by others.

(a) A person who believes that a violation
of chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92, or associated rules has occurred
may request an inspection by giving notice to the commissioner of the violation. The
notice must be in writing, state with reasonable particularity the grounds for the notice,
and be signed by the person making the request.

(b) If after receiving a notice of violation the commissioner reasonably believes that
a violation has occurred, the commissioner shall make a special inspection in accordance
with the provisions of this section as soon as practicable, to determine if a violation has
occurred.

(c) An inspection conducted pursuant to a notice under this subdivision may cover
an entire site and is not limited to the portion of the site specified in the notice. If the
commissioner determines that reasonable grounds to believe that a violation occurred
do not exist, the commissioner must notify the person making the request in writing of
the determination.

Sec. 15.

Minnesota Statutes 2008, section 18J.05, subdivision 1, is amended to read:


Subdivision 1.

Enforcement required.

(a) A violation of chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or
18K
new text end, sections 21.80 to 21.92, or an associated rule is a violation of this chapter.

(b) Upon the request of the commissioner, county attorneys, sheriffs, and other
officers having authority in the enforcement of the general criminal laws must take action
to the extent of their authority necessary or proper for the enforcement of chapter 18G
deleted text begin ordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92, or associated rules or valid orders, standards,
stipulations, and agreements of the commissioner.

Sec. 16.

Minnesota Statutes 2008, section 18J.05, subdivision 2, is amended to read:


Subd. 2.

Commissioner's discretion.

If minor violations of chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin,
or 18K
new text end, sections 21.80 to 21.92, or associated rules occur or the commissioner believes
the public interest will be best served by a suitable notice of warning in writing, this
section does not require the commissioner to:

(1) report the violation for prosecution;

(2) institute seizure proceedings; or

(3) issue a withdrawal from distribution, stop-sale, or other order.

Sec. 17.

Minnesota Statutes 2008, section 18J.05, subdivision 6, is amended to read:


Subd. 6.

Agent for service of process.

All persons licensed, permitted, registered,
or certified under chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92, or associated rules
must appoint the commissioner as the agent upon whom all legal process may be served
and service upon the commissioner is deemed to be service on the licensee, permittee,
registrant, or certified person.

Sec. 18.

Minnesota Statutes 2008, section 18J.06, is amended to read:


18J.06 FALSE STATEMENT OR RECORD.

A person must not knowingly make or offer a false statement, record, or other
information as part of:

(1) an application for registration, license, certification, or permit under chapter 18G
deleted text begin ordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92, or associated rules;

(2) records or reports required under chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80
to 21.92, or associated rules; or

(3) an investigation of a violation of chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to
21.92, or associated rules.

Sec. 19.

Minnesota Statutes 2008, section 18J.07, subdivision 3, is amended to read:


Subd. 3.

Cancellation of registration, permit, license, certification.

The
commissioner may cancel or revoke a registration, permit, license, or certification
provided for under chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92, or associated
rules or refuse to register, permit, license, or certify under provisions of chapter 18G deleted text beginordeleted text endnew text begin,new text end
18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92, or associated rules if the registrant, permittee,
licensee, or certified person has used fraudulent or deceptive practices in the evasion or
attempted evasion of a provision of chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92,
or associated rules.

Sec. 20.

Minnesota Statutes 2008, section 18J.07, subdivision 4, is amended to read:


Subd. 4.

Service of order or notice.

(a) If a person is not available for service
of an order, the commissioner may attach the order to the facility, site, seed or seed
container, plant or other living or nonliving object regulated under chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or
18K
new text end, sections 21.80 to 21.92, or associated rules and notify the owner, custodian, other
responsible party, or registrant.

(b) The seed, seed container, plant, or other living or nonliving object regulated
under chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections 21.80 to 21.92, or associated rules may not
be sold, used, tampered with, or removed until released under conditions specified by the
commissioner, by an administrative law judge, or by a court.

Sec. 21.

Minnesota Statutes 2008, section 18J.07, subdivision 5, is amended to read:


Subd. 5.

Unsatisfied judgments.

(a) An applicant for a license, permit, registration,
or certification under provisions of this chapter, chapter 18G deleted text beginordeleted text endnew text begin,new text end 18Hnew text begin, or 18Knew text end, sections
21.80 to 21.92, or associated rules may not allow a final judgment against the applicant
for damages arising from a violation of those statutes or rules to remain unsatisfied for
a period of more than 30 days.

(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation
of this chapter results in automatic suspension of the license, permit, registration, or
certification.

Sec. 22.

Minnesota Statutes 2008, section 18J.09, is amended to read:


18J.09 CREDITING OF PENALTIES, FEES, AND COSTS.

Penalties, cost reimbursements, fees, and other money collected under this chapter
must be deposited into the state treasury and credited to the appropriate nursery and
phytosanitarynew text begin, industrial hemp,new text end or seed account.

Sec. 23.

Minnesota Statutes 2008, section 18J.11, subdivision 1, is amended to read:


Subdivision 1.

General violation.

Except as provided in subdivisions 2 deleted text beginanddeleted text endnew text begin,new text end 3new text begin, and
4
new text end, a person is guilty of a misdemeanor if the person violates this chapter or an order,
standard, stipulation, agreement, or schedule of compliance of the commissioner.

Sec. 24.

Minnesota Statutes 2008, section 18J.11, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Controlled substance offenses. new text end

new text begin Prosecution under this section does not
preclude prosecution under chapter 152.
new text end

Sec. 25.

new text begin [18K.01] SHORT TITLE.
new text end

new text begin This chapter may be referred to as the "Industrial Hemp Development Act."
new text end

Sec. 26.

new text begin [18K.02] PURPOSE.
new text end

new text begin The legislature finds that the development and use of industrial hemp can improve
the state's economy and agricultural vitality and the production of industrial hemp can
be regulated so as not to interfere with the strict regulation of controlled substances in
this state. The purpose of the Industrial Hemp Development Act is to promote the state
economy and agriculture industry by permitting the development of a regulated industrial
hemp industry while maintaining strict control of marijuana.
new text end

Sec. 27.

new text begin [18K.03] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of agriculture.
new text end

new text begin Subd. 3. new text end

new text begin Industrial hemp. new text end

new text begin "Industrial hemp" means all parts and varieties of
the plant Cannabis sativa L. containing no greater than three-tenths of one percent
tetrahydrocannabinol.
new text end

new text begin Subd. 4. new text end

new text begin Marijuana. new text end

new text begin "Marijuana" has the meaning given in section 152.01,
subdivision 9.
new text end

Sec. 28.

new text begin [18K.04] INDUSTRIAL HEMP AUTHORIZED AS AGRICULTURAL
CROP.
new text end

new text begin Industrial hemp is considered an agricultural crop in this state if grown in
compliance with this chapter. A person may possess, process, sell, or buy industrial
hemp that is planted, grown, and harvested in accordance with the provisions of sections
18K.05 and 18K.06.
new text end

Sec. 29.

new text begin [18K.05] LICENSING.
new text end

new text begin (a) A person growing or seeking to grow industrial hemp for commercial purposes
must apply to the commissioner for license on a form prescribed by the commissioner.
new text end

new text begin (b) The application for a license must include the name and address of the applicant
and the legal description of the land area to be used for the production of industrial hemp.
new text end

new text begin (c) The commissioner must require each first-time applicant for a license to submit
to a background investigation conducted by the Bureau of Criminal Apprehension as a
condition of licensure. As part of the background investigation, the Bureau of Criminal
Apprehension must conduct criminal history checks of Minnesota records and is authorized
to exchange fingerprints with the Federal Bureau of Investigation for the purpose of a
criminal background check of the national files. The cost of the investigation must be paid
by the applicant. Criminal history records provided to the department under this section
must be treated as private data on individuals, as defined in section 13.02, subdivision 12.
new text end

new text begin (d) Prior to issuing a license under the provisions of this chapter, the commissioner
must determine that the applicant has complied with all applicable requirements of
the United States Department of Justice, Drug Enforcement Administration, for the
production, distribution, and sale of industrial hemp.
new text end

new text begin (e) If the applicant has completed the application process to the satisfaction of the
commissioner, the commissioner must issue a license which is valid until December 31
of the year of application. An individual licensed under this section is presumed to be
growing industrial hemp for commercial purposes.
new text end

Sec. 30.

new text begin [18K.06] INDUSTRIAL HEMP PRODUCTION; NOTIFICATION.
new text end

new text begin (a) Annually, a licensee must file with the commissioner:
new text end

new text begin (1) documentation showing that the seeds planted are of a type and variety certified
to contain no more than three-tenths of one percent tetrahydrocannabinol; and
new text end

new text begin (2) a copy of any contract to grow industrial hemp.
new text end

new text begin (b) A licensee must notify the commissioner of the sale or distribution of any
industrial hemp grown by the licensee, including, but not limited to, the name and address
of the person or entity receiving the industrial hemp and the amount of industrial hemp
sold.
new text end

Sec. 31.

new text begin [18K.07] RULEMAKING.
new text end

new text begin (a) The commissioner shall promulgate rules dealing with, but not limited to:
new text end

new text begin (1) supervising and inspecting industrial hemp during its growth and harvest;
new text end

new text begin (2) testing industrial hemp during growth to determine tetrahydrocannabinol levels;
new text end

new text begin (3) assessing a fee commensurate with the costs of the commissioner's activities in
initial startup, licensing, testing, and supervising industrial hemp production;
new text end

new text begin (4) using the results of the background checks authorized in section 18K.05 as
criteria for approving or denying an application for industrial hemp licensure; and
new text end

new text begin (5) any other rule or procedure necessary to carry out the purposes of this chapter.
new text end

new text begin (b) Rules promulgated under this section must be consistent with the rules of the
United States Department of Justice, Drug Enforcement Administration, regarding the
production, distribution, and sale of industrial hemp.
new text end

Sec. 32.

new text begin [18K.08] FEES.
new text end

new text begin Any fee collected under this chapter must be credited to the industrial hemp account,
which is hereby established in the agricultural fund in the state treasury. Interest earned in
the account accrues to the account. Funds in the industrial hemp account are continuously
appropriated to the commissioner to implement and enforce this chapter. Program startup
costs shall be paid from the agricultural fund and shall be repaid with funds in the
industrial hemp account.
new text end

Sec. 33.

new text begin [18K.09] DEFENSE FOR POSSESSION OF MARIJUANA.
new text end

new text begin It is an affirmative defense to a prosecution for the possession of marijuana under
chapter 152 if:
new text end

new text begin (1) the defendant was growing industrial hemp pursuant to the provisions of this
chapter;
new text end

new text begin (2) the defendant has a valid applicable controlled substances registration from the
United States Department of Justice, Drug Enforcement Administration;
new text end

new text begin (3) the defendant fully complied with all of the conditions of the controlled
substances registration; and
new text end

new text begin (4) the substance in possession is industrial hemp, as defined in section 18K.03.
new text end

Sec. 34.

Minnesota Statutes 2008, section 28A.082, subdivision 1, is amended to read:


Subdivision 1.

Fees; application.

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

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

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

Sec. 35.

Minnesota Statutes 2008, section 35.244, subdivision 1, is amended to read:


Subdivision 1.

Designation of zones.

The board deleted text beginhas the authority todeleted text endnew text begin may establish
zones for the
new text end controlnew text begin and eradication ofnew text end tuberculosis andnew text begin restrictnew text end the movement of cattle,
bison, goats, and farmed cervidae within and between tuberculosis zones in the state.
deleted text begin Zones within the state may be designated as accreditation preparatory, modified accredited,
modified accredited advanced, or accredited free as those terms are defined in Code of
Federal Regulations, title 9, part 77. The board may designate bovine tuberculosis control
zones that contain not more than 325 herds.
deleted text end

Sec. 36.

Minnesota Statutes 2008, section 35.244, subdivision 2, is amended to read:


Subd. 2.

new text beginRequirements within a tuberculosis new text endcontrol deleted text beginwithin modified accrediteddeleted text end
zone.

In a deleted text beginmodified accrediteddeleted text endnew text begin tuberculosis controlnew text end zone, the board deleted text beginhas the authority todeleted text endnew text begin
may
new text end:

(1) require owners of cattle, bison, goats, or farmed cervidae to report personal
contact information and location of livestock to the board;

(2) require a permit or movement certificates for all cattle, bison, goats, and farmed
cervidae moving between premises within the zone or leaving or entering the zone;

(3) require official identification of all cattle, bison, goats, and farmed cervidae
within the zone or leaving or entering the zone;

(4) require a whole-herd tuberculosis test on each herd of cattle, bison, goats, or
farmed cervidae when any of the animals in the herd is kept on a premises within the zone;

(5) require a negative tuberculosis test within 60 days prior to movement for any
individual cattle, bison, goat, or farmed cervidae moved from a premises in the zone to
another location in Minnesota, with the exception of cattle moving under permit directly
to a slaughter facility under state or federal inspection;

(6) require a whole-herd tuberculosis test within 12 months prior to moving
cattle, bison, goats, or farmed cervidae from premises in the zone to another location
in Minnesota;

(7) require annual herd inventories on all cattle, bison, goat, or farmed cervidae
herds; and

(8) require that a risk assessment be performed to evaluate the interaction of
free-ranging deer and elk with cattle, bison, goat, and farmed cervidae herds and require
the owner to implement the recommendations of the risk assessment.

Sec. 37.

new text begin [38.345] APPROPRIATIONS BY MUNICIPALITIES.
new text end

new text begin The council of any city and the board of supervisors of any town may incur expenses
and spend money for county extension work, as provided in sections 38.33 to 38.38.
new text end

Sec. 38.

Minnesota Statutes 2008, section 152.01, subdivision 9, is amended to read:


Subd. 9.

Marijuana.

"Marijuana" means all parts of the plant of any species of
the genus Cannabis, including all agronomical varieties, whether growing or not; the
seeds thereof; the resin extracted from any part of such plant; and every compound,
manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin, but
shall not include the mature stalks of such plant, fiber from such stalks, oil or cake made
from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture,
or preparation of such mature stalks, except the resin extracted therefrom, fiber, oil, or
cake, or the sterilized seed of such plant which is incapable of germination.new text begin Marijuana
does not include industrial hemp as defined in section 18K.03.
new text end

Sec. 39.

Minnesota Statutes 2008, section 239.092, is amended to read:


239.092 SALE FROM BULK.

(a) Bulk sales of commodities, when the buyer and seller are not both present to
witness the measurement, must be accompanied by a delivery ticket containing the
following information:

(1) the name and address of the person who weighed or measured the commodity;

(2) the date delivered;

(3) the quantity delivered;

(4) the count of individually wrapped packages delivered, if more than one is
included in the quantity delivered;

(5) the quantity on which the price is based, if different than the quantity delivered;
and

(6) the identity of the commodity in the most descriptive terms commercially
practicable, including representations of quality made in connection with the sale.

(b) This section is not intended to conflict with the bulk sale requirements of the
Department of Agriculture. If a conflict occurs, the law and rules of the Department of
Agriculture govern.

(c) Firewood sold or distributed across state boundaries or more than 100 miles
from its origin must include delivery ticket information regarding the harvest locations
of the wood by county and state.

new text begin (d) Paragraph (c) may be enforced using the authority granted in this chapter or
section 18J.05 or 84D.13.
new text end

Sec. 40.

Minnesota Statutes 2008, section 239.093, is amended to read:


239.093 INFORMATION REQUIRED WITH PACKAGE.

(a) A package offered, exposed, or held for sale must bear a clear and conspicuous
declaration of:

(1) the identity of the commodity in the package, unless the commodity can be easily
identified through the wrapper or container;

(2) the net quantity in terms of weight, measure, or count;

(3) the name and address of the manufacturer, packer, or distributor, if the packages
were not produced on the premises where they are offered, exposed, or held for sale; and

(4) the unit price, if the packages are part of a lot containing random weight
packages of the same commodity.

(b) This section is not intended to conflict with the packaging requirements of the
Department of Agriculture. If a conflict occurs, the laws and rules of the Department of
Agriculture govern.

(c) Firewood sold or distributed across state boundaries or more than 100 miles
from its origin must include information regarding the harvest locations of the wood by
county and state on each label or wrapper.

new text begin (d) Paragraph (c) may be enforced using the authority granted in this chapter or
section 18J.05 or 84D.13.
new text end

Sec. 41.

Minnesota Statutes 2009 Supplement, section 239.791, subdivision 1, is
amended to read:


Subdivision 1.

Minimum ethanol content required.

(a) Except as provided in
subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline
sold or offered for sale in Minnesota must contain at least the quantity of ethanol required
by clause (1) or (2), whichever is greater:

(1) 10.0 percent denatured ethanol by volume; or

(2) the maximum percent of denatured ethanol by volume authorized in a waiver
granted by the United States Environmental Protection Agency deleted text beginunder section 211(f)(4) of
the Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4)
deleted text end.

(b) For purposes of enforcing the minimum ethanol requirement of paragraph (a),
clause (1), a gasoline/ethanol blend will be construed to be in compliance if the ethanol
content, exclusive of denaturants and permitted contaminants, comprises not less than 9.2
percent by volume and not more than 10.0 percent by volume of the blend as determined
by an appropriate United States Environmental Protection Agency or American Society of
Testing Materials standard method of analysis of alcohol/ether content in engine fuels.

(c) The provisions of this subdivision are suspended during any period of time that
subdivision 1a, paragraph (a), is in effect.

new text begin EFFECTIVE DATE. new text end

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

Sec. 42.

Minnesota Statutes 2009 Supplement, section 239.791, subdivision 1a,
is amended to read:


Subd. 1a.

Minimum ethanol content required.

(a) Except as provided in
subdivisions 10 to 14, on August 30, 2013, and thereafter, a person responsible for the
product shall ensure that all gasoline sold or offered for sale in Minnesota must contain at
least the quantity of ethanol required by clause (1) or (2), whichever is greater:

(1) 20 percent denatured ethanol by volume; or

(2) the maximum percent of denatured ethanol by volume authorized in a waiver
granted by the United States Environmental Protection Agency deleted text beginunder section 211(f)(4) of
the Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4)
deleted text end.

(b) For purposes of enforcing the minimum ethanol requirement of paragraph (a),
clause (1), a gasoline/ethanol blend will be construed to be in compliance if the ethanol
content, exclusive of denaturants and permitted contaminants, comprises not less than 18.4
percent by volume and not more than 20 percent by volume of the blend as determined by
an appropriate United States Environmental Protection Agency or American Society of
Testing Materials standard method of analysis of alcohol content in motor fuels.

deleted text begin (c) No motor fuel shall be deemed to be a defective product by virtue of the fact
that the motor fuel is formulated or blended pursuant to the requirements of paragraph
(a) under any theory of liability except for simple or willful negligence or fraud. This
paragraph does not preclude an action for negligent, fraudulent, or willful acts. This
paragraph does not affect a person whose liability arises under chapter 115, water pollution
control; 115A, waste management; 115B, environmental response and liability; 115C,
leaking underground storage tanks; or 299J, pipeline safety; under public nuisance law
for damage to the environment or the public health; under any other environmental or
deleted text end deleted text begin public health law; or under any environmental or public health ordinance or program of a
municipality as defined in section 466.01.
deleted text end

deleted text begin (d)deleted text end new text begin(c) new text endThis subdivision expires on December 31, deleted text begin2010deleted text endnew text begin 2012new text end, if by that date:

(1) the commissioner of agriculture certifies and publishes the certification in
the State Register that at least 20 percent of the volume of gasoline sold in the state
is denatured ethanol; or

(2) federal approval has not been granted under paragraph (a), clause (1). The
United States Environmental Protection Agency's failure to act on an application shall not
be deemed approval under paragraph (a), clause (1), or a waiver under section 211(f)(4) of
the Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4).

new text begin EFFECTIVE DATE. new text end

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

Sec. 43.

Minnesota Statutes 2008, section 239.791, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Federal Clean Air Act waivers; conditions. new text end

new text begin (a) Before a waiver granted
by the United States Environmental Protection Agency under section 211(f)(4) of the
Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4),
may alter the minimum content level required by subdivision 1, paragraph (a), clause (2),
or subdivision 1a, paragraph (a), clause (2), the waiver must:
new text end

new text begin (1) apply to all gasoline-powered motor vehicles irrespective of model year; and
new text end

new text begin (2) allow for special regulatory treatment of Reid vapor pressure under Code of
Federal Regulations, title 40, section 80.27(d), for blends of gasoline and ethanol up to the
maximum percent of denatured ethanol by volume authorized under the waiver.
new text end

new text begin (b) The minimum ethanol requirement in subdivision 1, paragraph (a), clause (2),
or subdivision 1a, paragraph (a), clause (2), shall, upon the grant of the federal waiver,
be effective on a date determined by the commissioner of commerce. In making this
determination, the commissioner shall consider the amount of time required by refiners,
retailers, pipeline and distribution terminal companies, and other fuel suppliers, acting
expeditiously, to make the operational and logistical changes required to supply fuel in
compliance with the minimum ethanol requirement.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 44.

Minnesota Statutes 2008, section 239.791, is amended by adding a subdivision
to read:


new text begin Subd. 2b. new text end

new text begin Limited liability waiver. new text end

new text begin No motor fuel shall be deemed to be a defective
product by virtue of the fact that the motor fuel is formulated or blended pursuant to
the requirements of subdivision 1, paragraph (a), clause (2), or subdivision 1a, under
any theory of liability except for simple or willful negligence or fraud. This subdivision
does not preclude an action for negligent, fraudulent, or willful acts. This subdivision
does not affect a person whose liability arises under chapter 115, water pollution control;
115A, waste management; 115B, environmental response and liability; 115C, leaking
underground storage tanks; or 299J, pipeline safety; under public nuisance law for damage
to the environment or the public health; under any other environmental or public health
law; or under any environmental or public health ordinance or program of a municipality
as defined in section 466.01.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 45.

Minnesota Statutes 2008, section 239.791, is amended by adding a subdivision
to read:


new text begin Subd. 2c. new text end

new text begin Fuel dispensing equipment; blends over ten percent ethanol.
new text end

new text begin Notwithstanding any other law or rule, fuel dispensing equipment authorized to dispense
fuel under subdivision 1, paragraph (a), clause (1), is authorized to dispense fuel under
subdivision 1, paragraph (a), clause (2), or subdivision 1a.
new text end

Sec. 46.

Minnesota Statutes 2008, section 336.9-531, is amended to read:


336.9-531 ELECTRONIC ACCESS; LIABILITY; RETENTION.

(a) Electronic access. The secretary of state may allow private parties to have
electronic access to the central filing system and to other computerized records maintained
by the secretary of state on a fee basis, except that: (1) visual access to electronic display
terminals at the public counters at the Secretary of State's Office must be without charge
and must be available during public counter hours; and (2) access by law enforcement
personnel, acting in an official capacity, must be without charge. If the central filing system
allows a form of electronic access to information regarding the obligations of debtors, the
access must be available 24 hours a day, every day of the year. deleted text beginNotwithstanding section
13.355, private parties who have electronic access to computerized records may view the
Social Security number information about a debtor that is of record.
deleted text end

deleted text begin Notwithstanding section 13.355, a filing office may include Social Security number
information in an information request response under section 336.9-523 or a search of
other liens in the central filing system. A filing office may also include Social Security
number information on a photocopy or electronic copy of a record whether provided in
an information request response or in response to a request made under section 13.03.
deleted text end new text begin
Any Social Security number information or tax identification number information in the
possession of the secretary of state is private data on individuals.
new text end

(b) Liability. The secretary of state, county recorders, and their employees and
agents are not liable for any loss or damages arising from errors in or omissions from
information entered into the central filing system as a result of the electronic transmission
of tax lien notices under sections 268.058, subdivision 1, paragraph (c); 270C.63,
subdivision 4
; 272.483; and 272.488, subdivisions 1 and 3.

The state, the secretary of state, counties, county recorders, and their employees and
agents are immune from liability that occurs as a result of errors in or omissions from
information provided from the central filing system.

(c) Retention. Once the image of a paper record has been captured by the central
filing system, the secretary of state may remove or direct the removal from the files and
destroy the paper record.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for financing statements filed in the
central filing system after November 30, 2010.
new text end

Sec. 47.

Minnesota Statutes 2008, section 336A.08, subdivision 1, is amended to read:


Subdivision 1.

Compilation.

(a) The secretary of state shall compile the information
on effective financing statements in the computerized filing system into a master list:

(1) organized according to farm product;

(2) arranged within each product:

(i) in alphabetical order according to the last name of the individual debtor or, in
the case of debtors doing business other than as individuals, the first word in the name
of the debtors;

(ii) in numerical order according to the deleted text beginSocial Security number of the individual
debtor or, in the case of debtors doing business other than as individuals, the Internal
Revenue Service taxpayer identification number of the debtors
deleted text endnew text begin unique identifier assigned
by the secretary of state to, and associated with, the Social Security number of the debtor
new text end;

(iii) geographically by county; and

(iv) by crop year;

(3) containing the information provided on an effective financing statement; and

(4) designating any applicable terminations of the effective financing statement.

(b) The secretary of state shall compile information from lien notices recorded in the
computerized filing system into a statutory lien master list in alphabetical order according
to the last name of the individual debtor or, in the case of debtors doing business other
than as individuals, the first word in the name of the debtors. The secretary of state may
also organize the statutory lien master list according to one or more of the categories of
information established in paragraph (a). Any terminations of lien notices must be noted.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for lists compiled pursuant to this
section after October 31, 2010.
new text end

Sec. 48.

Minnesota Statutes 2008, section 336A.08, subdivision 4, is amended to read:


Subd. 4.

Distribution of master and partial lists.

(a) The secretary of state shall
maintain the information on the effective financing statement master list:

(1) by farm product arranged alphabetically by debtor; and

(2) by farm product arranged numerically by the deleted text begindebtor's Social Security number for
an individual debtor or, in the case of debtors doing business other than as individuals, the
Internal Revenue Service taxpayer identification number of the debtors
deleted text endnew text begin unique identifier
assigned by the secretary of state to, and associated with, the Social Security number
of the debtor
new text end.

(b) The secretary of state shall maintain the information in the farm products
statutory lien master list by county arranged alphabetically by debtor.

(c) The secretary of state shall distribute or make available the requested master and
partial master lists on a monthly basis to farm product dealers registered under section
336A.11. Lists will be distributed or made available on or before the tenth day of each
month or on the next business day thereafter if the tenth day is not a business day.

(d) The secretary of state shall make the master and partial master lists available
as written or printed paper documents and may make lists available in other forms or
media, including:

(1) any electronically transmitted medium; or

(2) any form of digital media.

(e) There shall be no fee for partial or master lists distributed via an electronically
transmitted medium. The annual fee for any other form of digital media is $200. The
annual fee for paper partial lists is $250 and $400 for paper master lists.

(f) A farm products dealer shall register pursuant to section 336A.11 by the last
business day of the month to receive the monthly lists requested by the farm products
dealer for that month.

(g) If a registered farm products dealer receives a monthly list that cannot be read or
is incomplete, the farm products dealer must immediately inform the secretary of state by
telephone or e-mail of the problem. The registered farm products dealer shall confirm the
existence of the problem by writing to the secretary of state. The secretary of state shall
provide the registered farm products dealer with new monthly lists in the medium chosen
by the registered farm products dealer no later than five business days after receipt of the
oral notice from the registered farm products dealer. A registered farm products dealer is
not considered to have received notice of the information on the monthly lists until the
duplicate list is received from the secretary of state or until five days have passed since the
duplicate lists were deposited in the mail by the secretary of state, whichever comes first.

(h) On receipt of a written notice pursuant to section 336A.13, the secretary of state
shall duplicate the monthly lists requested by the registered farm products dealer. The
duplicate monthly lists must be sent to the registered farm products dealer no later than five
business days after receipt of the written notice from the registered farm products dealer.

(i) A registered farm products dealer may request monthly lists in one medium
per registration.

(j) Registered farm products dealers must have renewed their registration before the
first day of July each year. Failure to send in the registration before that date will result in
the farm products dealer not receiving the requested monthly lists.

(k) Registered farm products dealers choosing to obtain monthly lists via an
electronically transmitted medium or in any form of digital media may choose to receive
all of the information for the monthly lists requested the first month and then only
additions and deletions to the database for the remaining 11 months of the year. Following
the first year of registration, the registered farm products dealer may choose to continue to
receive one copy of the full monthly list at the beginning of each year or may choose to
receive only additions and deletions.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for lists distributed pursuant to this
section after October 31, 2010.
new text end

Sec. 49.

Minnesota Statutes 2008, section 336A.14, is amended to read:


336A.14 RESTRICTED USE OF INFORMATION.

new text begin Any Social Security number information or tax identification number information
in the possession of the secretary of state is private data on individuals.
new text endInformation
obtained from the seller of a farm product relative to the Social Security number or tax
identification number of the true owner of the farm product and all information obtained
from the master or limited list may not be used for purposes that are not related to: (1)
purchase of a farm product; (2) taking a security interest against a farm product; or (3)
perfecting a farm product statutory lien.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 31, 2010.
new text end

Sec. 50.

Minnesota Statutes 2008, section 375.30, subdivision 2, is amended to read:


Subd. 2.

Wild hemp.

A county board, by resolution, may appropriate and spend
money as necessary to spray and otherwise eradicate wild hemp, commonly known as
marijuana, on private property within the county. The county board may authorize the
use of county equipment, personnel and supplies and materials to spray or otherwise
eradicate wild hemp on private property, and may pro rate the expenses involved between
the county and owner or occupant of the property.new text begin Wild hemp does not include industrial
hemp grown by a person licensed under chapter 18K.
new text end

Sec. 51.

Minnesota Statutes 2008, section 500.221, subdivision 2, is amended to read:


Subd. 2.

Aliens and non-American corporations.

Except as hereinafter provided,
no natural person shall acquire directly or indirectly any interest in agricultural land unless
the person is a citizen of the United States or a permanent resident alien of the United
States. In addition to the restrictions in section 500.24, no corporation, partnership,
limited partnership, trustee, or other business entity shall directly or indirectly, acquire
or otherwise obtain any interest, whether legal, beneficial or otherwise, in any title to
agricultural land unless at least 80 percent of each class of stock issued and outstanding or
80 percent of the ultimate beneficial interest of the entity is held directly or indirectly by
citizens of the United States or permanent resident aliens. This section shall not apply:

(1) to agricultural land that may be acquired by devise, inheritance, as security for
indebtedness, by process of law in the collection of debts, or by any procedure for the
enforcement of a lien or claim thereon, whether created by mortgage or otherwise. All
agricultural land acquired in the collection of debts or by the enforcement of a lien or
claim shall be disposed of within three years after acquiring ownership;

(2) to citizens or subjects of a foreign country whose rights to hold land are secured
by treaty;

(3) to lands used for transportation purposes by a common carrier, as defined in
section 218.011, subdivision 10;

(4) to lands or interests in lands acquired for use in connection with (i) the production
of timber and forestry products by a corporation organized under the laws of Minnesota,
or (ii) mining and mineral processing operations. Pending the development of agricultural
land for the production of timber and forestry products or mining purposes the land may
not be used for farming except under lease to a family farm, a family farm corporation or
an authorized farm corporation;

(5) to agricultural land operated for research or experimental purposes if the
ownership of the agricultural land is incidental to the research or experimental objectives
of the person or business entity and the total acreage owned by the person or business
entity does not exceed the acreage owned on May 27, 1977;

(6) to the purchase of any tract of 40 acres or less for facilities incidental to pipeline
operation by a company operating a pipeline as defined in section 216G.01, subdivision 3;

(7) to agricultural land and land capable of being used as farmland in vegetable
processing operations that is reasonably necessary to meet the requirements of pollution
control law or rules; deleted text beginor
deleted text end

(8) to an interest in agricultural land held on the August 1, 2003, by a natural person
with a nonimmigrant treaty investment visa, pursuant to United States Code, title 8,
section 1101(a)15(E)(ii), if, within five years after August 1, 2003, the person:

(i) disposes of all agricultural land held; or

(ii) becomes a permanent resident alien of the United States or a United States
citizendeleted text begin.deleted text endnew text begin; or
new text end

new text begin (9) to an easement taken by an individual or entity for the installation and repair
of transmission lines and for wind rights.
new text end

Sec. 52.

Minnesota Statutes 2008, section 500.221, subdivision 4, is amended to read:


Subd. 4.

Reports.

new text begin(a) new text endAny natural person, corporation, partnership, limited
partnership, trustee, or other business entity prohibited from future acquisition of
agricultural land may retain title to any agricultural land lawfully acquired within this state
prior to June 1, 1981, but shall file a report with the commissioner of agriculture annually
before January 31 containing a description of all agricultural land held within this state,
the purchase price and market value of the land, the use to which it is put, the date of
acquisition and any other reasonable information required by the commissioner.

new text begin (b) An individual or entity that qualifies for an exemption under subdivision 2,
clause (2) or (9), and owns an interest in agricultural land shall file a report with the
commissioner of agriculture within 30 days of acquisition containing a description of all
interests in agricultural land held within this state.
new text end

new text begin (c) new text endThe commissioner shall make the information available to the public.

new text begin (d) new text endAll required annual reports shall include a filing fee of $50 plus $10 for each
additional quarter section of land.

Sec. 53.

Minnesota Statutes 2008, section 500.24, subdivision 2, is amended to read:


Subd. 2.

Definitions.

The definitions in this subdivision apply to this section.

(a) "Farming" means the production of (1) agricultural products; (2) livestock or
livestock products; (3) milk or milk products; or (4) fruit or other horticultural products. It
does not include the processing, refining, or packaging of said products, nor the provision
of spraying or harvesting services by a processor or distributor of farm products. It does
not include the production of timber or forest products, the production of poultry or
poultry products, or the feeding and caring for livestock that are delivered to a corporation
for slaughter or processing for up to 20 days before slaughter or processing.

(b) "Family farm" means an unincorporated farming unit owned by one or more
persons residing on the farm or actively engaging in farming.

(c) "Family farm corporation" means a corporation founded for the purpose of
farming and the ownership of agricultural land in which the majority of the stock is held
by and the majority of the stockholders are persons, the spouses of persons, or current
beneficiaries of one or more family farm trusts in which the trustee holds stock in a family
farm corporation, related to each other within the third degree of kindred according to
the rules of the civil law, and at least one of the related persons is residing on or actively
operating the farm, and none of whose stockholders are corporations; provided that a
family farm corporation shall not cease to qualify as such hereunder by reason of any:

(1) transfer of shares of stock to a person or the spouse of a person related within
the third degree of kindred according to the rules of civil law to the person making the
transfer, or to a family farm trust of which the shareholder, spouse, or related person is
a current beneficiary; or

(2) distribution from a family farm trust of shares of stock to a beneficiary related
within the third degree of kindred according to the rules of civil law to a majority of the
current beneficiaries of the trust, or to a family farm trust of which the shareholder, spouse,
or related person is a current beneficiary.

For the purposes of this section, a transfer may be made with or without
consideration, either directly or indirectly, during life or at death, whether or not in trust,
of the shares in the family farm corporation, and stock owned by a family farm trust are
considered to be owned in equal shares by the current beneficiaries.

(d) "Family farm trust" means:

(1) a trust in which:

(i) a majority of the current beneficiaries are persons or spouses of persons who are
related to each other within the third degree of kindred according to the rules of civil law;

(ii) all of the current beneficiaries are natural persons or nonprofit corporations
or trusts described in the Internal Revenue Code, section 170(c), as amended, and the
regulations under that section; and

(iii) one of the family member current beneficiaries is residing on or actively
operating the farm; or the trust leases the agricultural land to a family farm unit, a
family farm corporation, an authorized farm corporation, an authorized livestock farm
corporation, a family farm limited liability company, a family farm trust, an authorized
farm limited liability company, a family farm partnership, or an authorized farm
partnership; or

(2) a charitable remainder trust as defined in the Internal Revenue Code, section 664,
as amended, and the regulations under that section, and a charitable lead trust as set forth
in the Internal Revenue Code, section 170(f), and the regulations under that section.

(e) "Authorized farm corporation" means a corporation meeting the following
standards:

(1) it has no more than five shareholders, provided that for the purposes of this
section, a husband and wife are considered one shareholder;

(2) all its shareholders, other than any estate, are natural persons or a family farm
trust;

(3) it does not have more than one class of shares;

(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed
20 percent of its gross receipts;

(5) shareholders holding 51 percent or more of the interest in the corporation reside
on the farm or are actively engaging in farming;

(6) it does not, directly or indirectly, own or otherwise have an interest in any title to
more than 1,500 acres of agricultural land; and

(7) none of its shareholders are shareholders in other authorized farm corporations
that directly or indirectly in combination with the corporation own more than 1,500 acres
of agricultural land.

(f) "Authorized livestock farm corporation" means a corporation formed for the
production of livestock and meeting the following standards:

(1) it is engaged in the production of livestock other than dairy cattle;

(2) all its shareholders, other than any estate, are natural persons, family farm trusts,
or family farm corporations;

(3) it does not have more than one class of shares;

(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed
20 percent of its gross receipts;

(5) shareholders holding 75 percent or more of the control, financial, and capital
investment in the corporation are farmers, and at least 51 percent of the required
percentage of farmers are actively engaged in livestock production;

(6) it does not, directly or indirectly, own or otherwise have an interest in any title to
more than 1,500 acres of agricultural land; and

(7) none of its shareholders are shareholders in other authorized farm corporations
that directly or indirectly in combination with the corporation own more than 1,500 acres
of agricultural land.

(g) "Agricultural land" means real estate used for farming or capable of being used
for farming in this state.

(h) "Pension or investment fund" means a pension or employee welfare benefit fund,
however organized, a mutual fund, a life insurance company separate account, a common
trust of a bank or other trustee established for the investment and reinvestment of money
contributed to it, a real estate investment trust, or an investment company as defined in
United States Code, title 15, section 80a-3.

(i) "Farm homestead" means a house including adjoining buildings that has been
used as part of a farming operation or is part of the agricultural land used for a farming
operation.

(j) "Family farm partnership" means a limited partnership formed for the purpose of
farming and the ownership of agricultural land in which the majority of the interests in
the partnership is held by and the majority of the partners are natural persons or current
beneficiaries of one or more family farm trusts in which the trustee holds an interest in a
family farm partnership related to each other within the third degree of kindred according
to the rules of the civil law, and at least one of the related persons is residing on the farm,
actively operating the farm, or the agricultural land was owned by one or more of the
related persons for a period of five years before its transfer to the limited partnership, and
none of the partners is a corporation. A family farm partnership does not cease to qualify
as a family farm partnership because of a:

(1) transfer of a partnership interest to a person or spouse of a person related within
the third degree of kindred according to the rules of civil law to the person making the
transfer or to a family farm trust of which the partner, spouse, or related person is a current
beneficiary; or

(2) distribution from a family farm trust of a partnership interest to a beneficiary
related within the third degree of kindred according to the rules of civil law to a majority
of the current beneficiaries of the trust, or to a family farm trust of which the partner,
spouse, or related person is a current beneficiary.

For the purposes of this section, a transfer may be made with or without
consideration, either directly or indirectly, during life or at death, whether or not in trust,
of a partnership interest in the family farm partnership, and interest owned by a family
farm trust is considered to be owned in equal shares by the current beneficiaries.

(k) "Authorized farm partnership" means a limited partnership meeting the following
standards:

(1) it has been issued a certificate from the secretary of state or is registered with the
county recorder and farming and ownership of agricultural land is stated as a purpose or
character of the business;

(2) it has no more than five partners;

(3) all its partners, other than any estate, are natural persons or family farm trusts;

(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed
20 percent of its gross receipts;

(5) its general partners hold at least 51 percent of the interest in the land assets of the
partnership and reside on the farm or are actively engaging in farming not more than 1,500
acres as a general partner in an authorized limited partnership;

(6) its limited partners do not participate in the business of the limited partnership
including operating, managing, or directing management of farming operations;

(7) it does not, directly or indirectly, own or otherwise have an interest in any title to
more than 1,500 acres of agricultural land; and

(8) none of its limited partners are limited partners in other authorized farm
partnerships that directly or indirectly in combination with the partnership own more than
1,500 acres of agricultural land.

(l) "Family farm limited liability company" means a limited liability company
founded for the purpose of farming and the ownership of agricultural land in which the
majority of the membership interests is held by and the majority of the members are
natural persons, or current beneficiaries of one or more family farm trusts in which the
trustee holds an interest in a family farm limited liability company related to each other
within the third degree of kindred according to the rules of the civil law, and at least one of
the related persons is residing on the farm, actively operating the farm, or the agricultural
land was owned by one or more of the related persons for a period of five years before
its transfer to the limited liability company, and none of the members is a corporation or
a limited liability company. A family farm limited liability company does not cease to
qualify as a family farm limited liability company because of:

(1) a transfer of a membership interest to a person or spouse of a person related
within the third degree of kindred according to the rules of civil law to the person making
the transfer or to a family farm trust of which the member, spouse, or related person is
a current beneficiary; or

(2) distribution from a family farm trust of a membership interest to a beneficiary
related within the third degree of kindred according to the rules of civil law to a majority
of the current beneficiaries of the trust, or to a family farm trust of which the member,
spouse, or related person is a current beneficiary.

For the purposes of this section, a transfer may be made with or without
consideration, either directly or indirectly, during life or at death, whether or not in trust, of
a membership interest in the family farm limited liability company, and interest owned by
a family farm trust is considered to be owned in equal shares by the current beneficiaries.
Except for a state or federally chartered financial institution acquiring an encumbrance
for the purpose of security or an interest under paragraph (x), a member of a family farm
limited liability company may not transfer a membership interest, including a financial
interest, to a person who is not otherwise eligible to be a member under this paragraph.

(m) "Authorized farm limited liability company" means a limited liability company
meeting the following standards:

(1) it has no more than five members;

(2) all its members, other than any estate, are natural persons or family farm trusts;

(3) it does not have more than one class of membership interests;

(4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed
20 percent of its gross receipts;

(5) members holding 51 percent or more of both the governance rights and financial
rights in the limited liability company reside on the farm or are actively engaged in
farming;

(6) it does not, directly or indirectly, own or otherwise have an interest in any title to
more than 1,500 acres of agricultural land; and

(7) none of its members are members in other authorized farm limited liability
companies that directly or indirectly in combination with the authorized farm limited
liability company own more than 1,500 acres of agricultural land.

Except for a state or federally chartered financial institution acquiring an
encumbrance for the purpose of security or an interest under paragraph (x), a member of
an authorized farm limited liability company may not transfer a membership interest,
including a financial interest, to a person who is not otherwise eligible to be a member
under this paragraph.

(n) "Farmer" means a natural person who regularly participates in physical labor or
operations management in the person's farming operation and files "Schedule F" as part of
the person's annual Form 1040 filing with the United States Internal Revenue Service.

(o) "Actively engaged in livestock production" means performing day-to-day
physical labor or day-to-day operations management that significantly contributes to
livestock production and the functioning of a livestock operation.

(p) "Research or experimental farm" means a corporation, limited partnership,
pension, investment fund, or limited liability company that owns or operates agricultural
land for research or experimental purposes, provided that any commercial sales from the
operation are incidental to the research or experimental objectives of the corporation. A
corporation, limited partnership, limited liability company, or pension or investment fund
seeking initial approval by the commissioner to operate agricultural land for research or
experimental purposes must first submit to the commissioner a prospectus or proposal of
the intended method of operation containing information required by the commissioner
including a copy of any operational contract with individual participants.

(q) "Breeding stock farm" means a corporation, limited partnership, or limited
liability company, that owns or operates agricultural land for the purpose of raising
breeding stock, including embryos, for resale to farmers or for the purpose of growing
seed, wild rice, nursery plants, or sod. An entity that is organized to raise livestock
other than dairy cattle under this paragraph that does not qualify as an authorized farm
corporation must:

(1) sell all castrated animals to be fed out or finished to farming operations that are
neither directly nor indirectly owned by the business entity operating the breeding stock
operation; and

(2) report its total production and sales annually to the commissioner.

(r) "Aquatic farm" means a corporation, limited partnership, or limited liability
company, that owns or leases agricultural land as a necessary part of an aquatic farm
as defined in section 17.47, subdivision 3.

(s) "Religious farm" means a corporation formed primarily for religious purposes
whose sole income is derived from agriculture.

(t) "Utility corporation" means a corporation regulated under Minnesota Statutes
1974, chapter 216B, that owns agricultural land for purposes described in that chapter, or
an electric generation or transmission cooperative that owns agricultural land for use in
its business if the land is not used for farming except under lease to a family farm unit,
a family farm corporation, a family farm trust, a family farm partnership, or a family
farm limited liability company.

(u) "Development organization" means a corporation, limited partnership, limited
liability company, or pension or investment fund that has an interest in agricultural land
for which the corporation, limited partnership, limited liability company, or pension or
investment fund has documented plans to use and subsequently uses the land within
six years from the date of purchase for a specific nonfarming purpose, or if the land is
zoned nonagricultural, or if the land is located within an incorporated area. A corporation,
limited partnership, limited liability company, or pension or investment fund may hold
agricultural land in the amount necessary for its nonfarm business operation; provided,
however, that pending the development of agricultural land for nonfarm purposes, the land
may not be used for farming except under lease to a family farm unit, a family farm
corporation, a family farm trust, an authorized farm corporation, an authorized livestock
farm corporation, a family farm partnership, an authorized farm partnership, a family farm
limited liability company, or an authorized farm limited liability company, or except when
controlled through ownership, options, leaseholds, or other agreements by a corporation
that has entered into an agreement with the United States under the New Community Act
of 1968 (Title IV of the Housing and Urban Development Act of 1968, United States Code,
title 42, sections 3901 to 3914) as amended, or a subsidiary or assign of such a corporation.

(v) "Exempt land" means agricultural land owned or leased by a corporation as of
May 20, 1973, agricultural land owned or leased by a pension or investment fund as of
May 12, 1981, agricultural land owned or leased by a limited partnership as of May 1,
1988, or agricultural land owned or leased by a trust as of the effective date of Laws 2000,
chapter 477, including the normal expansion of that ownership at a rate not to exceed 20
percent of the amount of land owned as of May 20, 1973, for a corporation; May 12, 1981,
for a pension or investment fund; May 1, 1988, for a limited partnership, or the effective
date of Laws 2000, chapter 477, for a trust, measured in acres, in any five-year period,
and including additional ownership reasonably necessary to meet the requirements of
pollution control rules. A corporation, limited partnership, or pension or investment fund
that is eligible to own or lease agricultural land under this section prior to May 1997, or a
corporation that is eligible to own or lease agricultural land as a benevolent trust under this
section prior to the effective date of Laws 2000, chapter 477, may continue to own or lease
agricultural land subject to the same conditions and limitations as previously allowed.

(w) "Gifted land" means agricultural land acquired as a gift, either by grant or devise,
by an educational, religious, or charitable nonprofit corporation, limited partnership,
limited liability company, or pension or investment fund if all land so acquired is disposed
of within ten years after acquiring the title.

(x) "Repossessed land" means agricultural land acquired by a corporation, limited
partnership, limited liability company, or pension or investment fund by process of law
in the collection of debts, or by any procedure for the enforcement of a lien or claim on
the land, whether created by mortgage or otherwise if all land so acquired is disposed of
within five years after acquiring the title. The five-year limitation is a covenant running
with the title to the land against any grantee, assignee, or successor of the pension or
investment fund, corporation, limited partnership, or limited liability company. The land
so acquired must not be used for farming during the five-year period, except under a
lease to a family farm unit, a family farm corporation, a family farm trust, an authorized
farm corporation, an authorized livestock farm corporation, a family farm partnership, an
authorized farm partnership, a family farm limited liability company, or an authorized
farm limited liability company. Notwithstanding the five-year divestiture requirement
under this paragraph, a financial institution may continue to own the agricultural land if the
agricultural land is leased to the immediately preceding former owner, but must dispose
of the agricultural land within ten years of acquiring the title. Livestock acquired by a
pension or investment fund, corporation, limited partnership, or limited liability company
in the collection of debts, or by a procedure for the enforcement of lien or claim on the
livestock whether created by security agreement or otherwise after August 1, 1994, must
be sold or disposed of within one full production cycle for the type of livestock acquired
or 18 months after the livestock is acquired, whichever is earlier.

(y) "Commissioner" means the commissioner of agriculture.

(z) "Nonprofit corporation" means a nonprofit corporation organized under state
nonprofit corporation or trust law or qualified for tax-exempt status under federal tax
law that uses the land for a specific nonfarming purpose deleted text beginordeleted text endnew text begin,new text end leases the agricultural land
to a family farm unit, a family farm corporation, an authorized farm corporation, an
authorized livestock farm corporation, a family farm limited liability company, a family
farm trust, an authorized farm limited liability company, a family farm partnership, or an
authorized farm partnershipnew text begin, or actively farms less than 40 acres and uses all profits from
the agricultural land for educational purposes
new text end.

(aa) "Current beneficiary" means a person who at any time during a year is entitled
to, or at the discretion of any person may, receive a distribution from the income or
principal of the trust. It does not include a distributee trust, other than a trust described in
section 170(c) of the Internal Revenue Code, as amended, but does include the current
beneficiaries of the distributee trust. It does not include a person in whose favor a power
of appointment could be exercised until the holder of the power of appointment actually
exercises the power of appointment in that person's favor. It does not include a person who
is entitled to receive a distribution only after a specified time or upon the occurrence of a
specified event until the time or occurrence of the event. For the purposes of this section, a
distributee trust is a current beneficiary of a family farm trust.

(bb) "De minimis" means that any corporation, pension or investment fund, limited
liability company, or limited partnership that directly or indirectly owns, acquires, or
otherwise obtains any interest in 40 acres or less of agricultural land and annually receives
less than $150 per acre in gross revenue from rental or agricultural production.

Sec. 54.

Minnesota Statutes 2008, section 514.965, subdivision 2, is amended to read:


Subd. 2.

Agricultural lien.

"Agricultural lien" means an agricultural lien as defined
in section 336.9-102(a)(5) and includes a veterinarian's lien, breeder's lien, livestock
production input lien, new text begintemporary livestock production input lien, new text endand feeder's lien under
this sectionnew text begin and section 514.966new text end.

Sec. 55.

Minnesota Statutes 2008, section 514.966, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Temporary livestock production input lien; debtor in mediation. new text end

new text begin (a)
A supplier furnishing livestock production inputs in the ordinary course of business to a
debtor who has filed a mediation request under chapter 583 has a livestock production
input lien for the unpaid retail cost of the livestock production input. A perfected livestock
production input lien that attaches to livestock may not exceed the amount, if any, that the
sales price of the livestock for which the inputs were received exceeds the greater of the
fair market value of the livestock at the time the lien attaches or the acquisition price of
the livestock. A livestock production input lien becomes effective when the agricultural
production inputs are furnished by the supplier to the purchaser.
new text end

new text begin (b) A livestock production input lien under this subdivision applies to livestock
production inputs provided to the debtor during the 45 days following a mediation request
under chapter 583.
new text end

new text begin (c) A person who supplies livestock production inputs under this subdivision shall
provide a lien-notification statement as required under subdivision 3, paragraphs (b)
and (c), but is not subject to subdivision 3, paragraphs (d) to (f). A perfected temporary
livestock production input lien corresponding to the lien-notification statement has priority
over any security interest of the lender in the same livestock or their proceeds for the
lesser of:
new text end

new text begin (1) the amount stated in the lien-notification statement; or
new text end

new text begin (2) the unpaid retail cost of the livestock production input identified in the
lien-notification statement, subject to any limitation in paragraph (a).
new text end

Sec. 56.

Minnesota Statutes 2008, section 514.966, subdivision 5, is amended to read:


Subd. 5.

Scope.

A veterinarian's lien, breeder's lien, livestock production input lien,
new text begin temporary livestock production lien, new text endor feeder's lien attaches to the livestock serviced by
the agricultural lienholder, and products and proceeds thereof to the extent of the price
or value of the service provided.

Sec. 57.

Minnesota Statutes 2008, section 514.966, subdivision 6, is amended to read:


Subd. 6.

Perfection.

(a) An agricultural lien under this section is perfected if a
financing statement is filed pursuant to sections 336.9-501 to 336.9-530 and within the
time periods set forth in paragraphs (b) to deleted text begin(e)deleted text endnew text begin (f)new text end.

(b) A veterinarian's lien must be perfected on or before 180 days after the last item
of the veterinary service is performed.

(c) A breeder's lien must be perfected by six months after the last date that breeding
services are provided the obligor.

(d) new text beginExcept as provided in paragraph (f), new text enda livestock production input lien must be
perfected by six months after the last date that livestock production inputs are furnished
the obligor.

(e) A feeder's lien must be perfected on or before 60 days after the last date that
feeding services are furnished the obligor.

new text begin (f) A temporary livestock production input lien, under subdivision 3a, must be
perfected on or before 60 days after the last date that livestock production inputs are
furnished the obligor.
new text end

Sec. 58.

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


Subd. 5.

Administration and Financial
Assistance

7,338,000
6,751,000

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

$50,000 the first year and $50,000 the
second year are for the Northern Crops
Institute. These appropriations may be spent
to purchase equipment.

$19,000 the first year and $19,000 the
second year are for a grant to the Minnesota
Livestock Breeders Association.

$250,000 the first year and $250,000 the
second year are for grants to the Minnesota
Agricultural Education Leadership Council
for programs of the council under Minnesota
Statutes, chapter 41D.

$600,000 the first year is for grants for
fertilizer research as awarded by the
Minnesota Agricultural Fertilizer Research
and Education Council under Minnesota
Statutes, section 18C.71. The amount
available to the commissioner pursuant
to Minnesota Statutes, section 18C.70,
subdivision 2
, for administration of this
activity is available until February 1, 2009,
by which time the commissioner shall
report to the house and senate committees
with jurisdiction over agriculture finance.
The report must include the progress and
outcome of funded projects as well as the
sentiment of the council concerning the need
for additional research funded through an
industry checkoff fee. new text beginThe amount available
for grants is available until June 30, 2011.
new text end

$465,000 the first year and $465,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1
. Aid payments to county and
district agricultural societies and associations
shall be disbursed not later than July 15 of
each year. These payments are the amount of
aid owed by the state for an annual fair held
in the previous calendar year.

$65,000 the first year and $65,000 the second
year are for annual grants to the Minnesota
Turf Seed Council for basic and applied
research on the improved production of
forage and turf seed related to new and
improved varieties. The grant recipient may
subcontract with a qualified third party for
some or all of the basic and applied research.

$500,000 the first year and $500,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Second Harvest food banks for the purchase
of milk for distribution to Minnesota's food
shelves and other charitable organizations
that are eligible to receive food from the food
banks. Milk purchased under the grants must
be acquired from Minnesota milk processors
and based on low-cost bids. The milk must be
allocated to each Second Harvest food bank
serving Minnesota according to the formula
used in the distribution of United States
Department of Agriculture commodities
under The Emergency Food Assistance
Program (TEFAP). Second Harvest
Heartland must submit quarterly reports
to the commissioner on forms prescribed
by the commissioner. The reports must
include, but are not limited to, information
on the expenditure of funds, the amount
of milk purchased, and the organizations
to which the milk was distributed. Second
Harvest Heartland may enter into contracts
or agreements with food banks for shared
funding or reimbursement of the direct
purchase of milk. Each food bank receiving
money from this appropriation may use up to
two percent of the grant for administrative
expenses.

$100,000 the first year and $100,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges and
Universities for mental health counseling
support to farm families and business
operators through farm business management
programs at Central Lakes College and
Ridgewater College.

$18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Horticultural Society.

$50,000 is for a grant to the University of
Minnesota, Department of Horticultural
Science, Enology Laboratory, to upgrade
and purchase instrumentation to allow
rapid and accurate measurement of enology
components. This is a onetime appropriation
and is available until expended.

new text begin EFFECTIVE DATE. new text end

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

Sec. 59.

Laws 2008, chapter 296, article 1, section 25, the effective date, is amended to
read:


EFFECTIVE DATE.

This section is effective June 1, deleted text begin2010deleted text endnew text begin 2011new text end.

new text begin EFFECTIVE DATE. new text end

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

Sec. 60.

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


Subd. 5.

Administration and Financial
Assistance

8,177,000
7,037,000
Appropriations by Fund
2010
2011
General
7,377,000
6,237,000
Agricultural
800,000
800,000

$780,000 the first year and $755,000 the
second year are for continuation of the dairy
development and profitability enhancement
and dairy business planning grant programs
established under Laws 1997, chapter
216, section 7, subdivision 2, and Laws
2001, First Special Session chapter 2,
section 9, subdivision 2. The commissioner
may allocate the available sums among
permissible activities, including efforts to
improve the quality of milk produced in the
state in the proportions that the commissioner
deems most beneficial to Minnesota's dairy
farmers. The commissioner must submit a
work plan detailing plans for expenditures
under this program to the chairs of the house
of representatives and senate committees
dealing with agricultural policy and budget
on or before the start of each fiscal year. If
significant changes are made to the plans
in the course of the year, the commissioner
must notify the chairs.

$50,000 the first year and $50,000 the
second year are for the Northern Crops
Institute. These appropriations may be spent
to purchase equipment.

$19,000 the first year and $19,000 the
second year are for a grant to the Minnesota
Livestock Breeders Association.

$250,000 the first year and $250,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.

$474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1
. Aid payments to county and
district agricultural societies and associations
shall be disbursed no later than July 15 of
each year. These payments are the amount of
aid from the state for an annual fair held in
the previous calendar year.

$1,000 the first year and $1,000 the second
year are for grants to the Minnesota State
Poultry Association.

$65,000 the first year and $65,000 the second
year are for annual grants to the Minnesota
Turf Seed Council for basic and applied
research on the improved production of
forage and turf seed related to new and
improved varieties. The grant recipient may
subcontract with a qualified third party for
some or all of the basic and applied research.

$50,000 the first year and $50,000 the
second year are for annual grants to the
Minnesota Turf Seed Council for basic
and applied agronomic research on native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic
or applied research. The grant recipient
must actively participate in the Agricultural
Utilization Research Institute's Renewable
Energy Roundtable and no later than
February 1, 2011, must report to the house of
representatives and senate committees with
jurisdiction over agriculture finance.

$500,000 the first year and $500,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Second Harvest food banks for the purchase
of milk for distribution to Minnesota's food
shelves and other charitable organizations
that are eligible to receive food from the food
banks. Milk purchased under the grants must
be acquired from Minnesota milk processors
and based on low-cost bids. The milk must be
allocated to each Second Harvest food bank
serving Minnesota according to the formula
used in the distribution of United States
Department of Agriculture commodities
under The Emergency Food Assistance
Program (TEFAP). Second Harvest
Heartland must submit quarterly reports
to the commissioner on forms prescribed
by the commissioner. The reports must
include, but are not limited to, information
on the expenditure of funds, the amount
of milk purchased, and the organizations
to which the milk was distributed. Second
Harvest Heartland may enter into contracts
or agreements with food banks for shared
funding or reimbursement of the direct
purchase of milk. Each food bank receiving
money from this appropriation may use up to
two percent of the grant for administrative
expenses.

$1,000,000 the first year is for the agricultural
growth, research, and innovation program
in Minnesota Statutes, section 41A.12.
Priority must be given to livestock programs
under Minnesota Statutes, section 17.118.
Priority for livestock grants shall be given
to persons who are beginning livestock
producers and livestock producers who are
rebuilding after a disaster that was due to
natural or other unintended conditions. The
commissioner may use up to 4.5 percent
of this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available in the second year.

$100,000 the first year and $100,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges and
Universities for mental health counseling
support to farm families and business
operators through farm business management
programs at Central Lakes College and
Ridgewater College.

$18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Horticultural Society.

Notwithstanding Minnesota Statutes,
section 18C.131, $800,000 the first year
and $800,000 the second year are from the
fertilizer account in the agricultural fund
for grants for fertilizer research as awarded
by the Minnesota Agricultural Fertilizer
Research and Education Council under
Minnesota Statutes, section 18C.71. The
amount appropriated in either fiscal year must
not exceed 57 percent of the inspection fee
revenue collected under Minnesota Statutes,
section 18C.425, subdivision 6, during the
previous fiscal year. No later than February
1, 2011, the commissioner shall report to
the legislative committees with jurisdiction
over agriculture finance. The report must
include the progress and outcome of funded
projects as well as the sentiment of the
council concerning the need for additional
research funds.new text begin The appropriation for the
first year is available until June 30, 2013,
and the appropriation for the second year is
available until June 30, 2014.
new text end

$60,000 the first year is for a transfer to the
University of Minnesota Extension Service
for farm-to-school grants to school districts
in Minneapolis, Moorhead, White Earth, and
Willmar.

$30,000 is for star farms program
development. The commissioner, in
consultation with other state and local
agencies, farm groups, conservation
groups, legislators, and other interested
persons, shall develop a proposal for a star
farms program. By January 15, 2010, the
commissioner shall submit the proposal to
the legislative committees and divisions
with jurisdiction over agriculture and
environmental policy and finance. This is a
onetime appropriation.
* (The preceding
paragraph beginning "$30,000 is for star
farms program" was indicated as vetoed
by the governor.)

$25,000 the first year is for the administration
of the Feeding Minnesota Task Force, under
new Minnesota Statutes, section 31.97. This
is a onetime appropriation.

new text begin EFFECTIVE DATE. new text end

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

Sec. 61. new text beginAPPROPRIATION; TERMINAL CAPACITY REPORT.
new text end

new text begin $40,000 is appropriated in fiscal year 2011 from the liquefied petroleum gas account
in the special revenue fund under Minnesota Statutes, section 239.785, subdivision 6
to the commissioner of agriculture for a terminal capacity report. This is a onetime
appropriation. The commissioner of agriculture, with assistance from the Office of Energy
Security, shall determine the total propane and anhydrous ammonia terminal capacity
located in the state and within 100 miles of the state's borders. The commissioner shall
also use projected grain yields and other relevant factors to estimate total agricultural
demand for propane and anhydrous ammonia in this state in the year 2020 and shall
develop a detailed plan for fully and economically satisfying this anticipated demand. No
later than January 15, 2011, the commissioner shall present the report to the legislative
committees with jurisdiction over agriculture finance.
new text end

Sec. 62. new text beginDAIRY RESEARCH AND EDUCATION FACILITY;
COLLABORATION.
new text end

new text begin The commissioner of agriculture shall convene one or more meetings with milk
producers, other industry stakeholders, and representatives of the University of Minnesota
and Minnesota State Colleges and Universities System whose work relates to the dairy
industry to consider the elements of a dairy research and education facility which would
represent a partnership between higher education institutions and the dairy industry. No
later than February 1, 2011, the commissioner shall provide a report on facility and
financing options to the legislative committees with jurisdiction over agriculture finance.
new text end

Sec. 63. new text beginBIOENERGY DEVELOPMENT; REPORT.
new text end

new text begin The commissioner of agriculture shall actively pursue federal and other resources
available to promote and achieve greater production and use of biofuels in this state,
including but not limited to increasing the availability of retail fuel dispensers for E85 and
intermediate ethanol-gasoline blends. No later than February 15, 2011, the commissioner
shall report on activities and accomplishments under this section to the legislative
committees with jurisdiction over agriculture finance.
new text end

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

new text begin Minnesota Statutes 2008, section 17.231, new text end new text begin and new text end new text begin Laws 2009, chapter 94, article 1,
section 106,
new text end new text begin are repealed.
new text end

Sec. 65. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 8 to 33, 38, and 50 are effective the day after the United States Department
of Justice, Drug Enforcement Administration, authorizes a person to commercially grow
industrial hemp in the United States.
new text end

ARTICLE 2

VETERANS

Section 1.

Minnesota Statutes 2008, section 1.141, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Folding of the state flag for presentation or display. new text end

new text begin The following
procedures constitute the proper way to fold the Minnesota State Flag for presentation or
display. Fold the flag four times lengthwise so that one section displays the three stars
of the state crest and the text "L'Etoile du Nord." Fold each side behind the displayed
section at a 90-degree angle so that the display section forms a triangle. Take the section
ending with the hoist and fold it at a 90-degree angle across the bottom of the display
section and then fold the hoist back over so it is aligned with the middle of the display
section. Fold the other protruding section directly upwards so that its edge is flush with
the display section and then fold it upwards along a 45-degree angle so that a mirror
of the display section triangle is formed. Fold the mirror section in half from the point
upwards, then fold the remaining portion upwards, tucking it between the display section
and the remainder of the flag.
new text end

Sec. 2.

Minnesota Statutes 2008, section 1.141, is amended by adding a subdivision to
read:


new text begin Subd. 7. new text end

new text begin Folding of the state flag for storage. new text end

new text begin When folding the Minnesota State
Flag for storage, the proper procedure is to fold and store the flag in the same manner as
the national colors.
new text end

Sec. 3.

Minnesota Statutes 2009 Supplement, section 190.19, subdivision 2a, is
amended to read:


Subd. 2a.

Uses; veterans.

Money appropriated to the Department of Veterans
Affairs from the Minnesota "Support Our Troops" account may be used for:

(1) grants to veterans service organizations;

(2) outreach to underserved veterans; deleted text beginand
deleted text end

new text begin (3) providing services and programs for veterans and their families; and
new text end

deleted text begin (3)deleted text endnew text begin (4)new text end transfers to the vehicle services account for Gold Star license plates under
section 168.1253.

Sec. 4.

Minnesota Statutes 2008, section 197.455, is amended by adding a subdivision
to read:


new text begin Subd. 5a. new text end

new text begin Teacher hiring. new text end

new text begin (a) Any public school under the state's Education Code
that chooses at any time to use a 100-point hiring method to evaluate applicants for
teaching positions is subject to the requirements of subdivisions 4 and 5 for determining
veterans preference points.
new text end

new text begin (b) Any public school under the state's Education Code opting at any time not to use
a 100-point hiring method to evaluate applicants for teaching positions is exempt from
the requirements of subdivisions 4 and 5 for determining veterans preference points, but
must instead grant to any veteran who applies for a teaching position and who has proper
licensure for that position an interview for that position.
new text end

Sec. 5.

Minnesota Statutes 2009 Supplement, section 197.46, is amended to read:


197.46 VETERANS PREFERENCE ACT; REMOVAL FORBIDDEN; RIGHT
OF MANDAMUS.

Any person whose rights may be in any way prejudiced contrary to any of the
provisions of this section, shall be entitled to a writ of mandamus to remedy the wrong.
No person holding a position by appointment or employment in the several counties,
cities, towns, school districts and all other political subdivisions in the state, who is a
veteran separated from the military service under honorable conditions, shall be removed
from such position or employment except for incompetency or misconduct shown after a
hearing, upon due notice, upon stated charges, in writing.

Any veteran who has been notified of the intent to discharge the veteran from an
appointed position or employment pursuant to this section shall be notified in writing of
such intent to discharge and of the veteran's right to request a hearing within 60 days of
receipt of the notice of intent to discharge. The failure of a veteran to request a hearing
within the provided 60-day period shall constitute a waiver of the right to a hearing. Such
failure shall also waive all other available legal remedies for reinstatement.

Request for a hearing concerning such a discharge shall be made in writing and
submitted by mail or personal service to the employment office of the concerned employer
or other appropriate office or person.

In all governmental subdivisions having an established civil service board or
commission, or merit system authority, such hearing for removal or discharge shall be
held before such civil service board or commission or merit system authority. Where no
such civil service board or commission or merit system authority exists, such hearing
shall be held by a board of three persons appointed as follows: one by the governmental
subdivision, one by the veteran, and the third by the two so selected. In the event the two
persons so selected do not appoint the third person within ten days after the appointment
of the last of the two, then the judge of the district court of the county wherein the
proceeding is pending, or if there be more than one judge in said county then any judge in
chambers, shall have jurisdiction to appoint, and upon application of either or both of the
two so selected shall appoint, the third person to the board and the person so appointed
by the judge with the two first selected shall constitute the board. The veteran may
appeal from the decision of the board upon the charges to the district court by causing
written notice of appeal, stating the grounds thereof, to be served upon the governmental
subdivision or officer making the charges within 15 days after notice of the decision
and by filing the original notice of appeal with proof of service thereof in the office of
the court administrator of the district court within ten days after service thereof. Nothing
in section 197.455 or this section shall be construed to apply to the position of private
secretary, superintendent of schools, or one chief deputy of any elected official or head of
a department, or to any person holding a strictly confidential relation to the appointing
officer. new text beginNothing in this section shall be construed to apply to the position of teacher.new text end
The burden of establishing such relationship shall be upon the appointing officer in all
proceedings and actions relating thereto.

All officers, boards, commissions, and employees shall conform to, comply with,
and aid in all proper ways in carrying into effect the provisions of section 197.455 and this
section notwithstanding any laws, charter provisions, ordinances or rules to the contrary.
Any willful violation of such sections by officers, officials, or employees is a misdemeanor.

Sec. 6.

Minnesota Statutes 2008, section 197.481, subdivision 1, is amended to read:


Subdivision 1.

Petition.

A veterannew text begin, as defined by section 197.447,new text end who has been
denied rights by the state or any political subdivision, municipality, or other public agency
of the state new text beginas authorized by the Veterans Preference Act new text endunder section 43A.11, 197.46,
197.48, or 197.455 may petition the commissioner of veterans affairs for an order directing
the agency to grant the veteran such relief the commissioner finds justified by said statutes.

The petition shall new text beginbe submitted via United States mail and new text endcontain:

(1) the name, address, new text begintelephone number, new text endand deleted text beginacknowledgeddeleted text end new text beginnotarized original
new text endsignature of the veteran;

(2) the namesnew text begin, telephone numbers,new text end and addresses of all agencies and persons that
will be directly affected if the petition is granted;

(3) a concise statement of the facts giving rise to the veteran's rights and a concise
statement showing the manner in which rights were denied;

(4) a statement of the relief requesteddeleted text begin.deleted text endnew text begin; and
new text end

new text begin (5) a copy of the veteran's Form DD214 (Separation or Discharge from Active Duty).
new text end

Sec. 7.

Minnesota Statutes 2008, section 197.481, subdivision 2, is amended to read:


Subd. 2.

Service.

Upon receipt new text beginand authorization verification new text endof a new text begincomplete new text endpetition
herein, the commissioner shall serve a copy of same, by certified mail, on all agencies and
persons named therein and on such other agencies or persons as in the judgment of the
commissioner should in justice be parties to the proceeding. The veteran and all agencies
and persons served shall be parties to the proceeding.

Sec. 8.

Minnesota Statutes 2008, section 197.481, subdivision 4, is amended to read:


Subd. 4.

Hearing.

The commissioner shall deleted text beginholddeleted text endnew text begin schedulenew text end a hearing on the petition
of any party new text beginto be held or conductednew text end within deleted text begin20deleted text endnew text begin 120new text end days of serving, or being served with
the new text beginauthorized and complete new text endpetition. deleted text beginThe veteran may demand an opportunity to be heard
at a time set by the commissioner. A party who fails to demand such hearing within 20
days shall be heard only by permission of the commissioner, except that if any party
demands to be heard
deleted text end new text beginAt the hearing, new text endall parties shall have the right to be heard. A hearing
hereunder shall be conducted and orders issued in accord with sections 14.57 to 14.60
and 14.62, at the office of the commissioner or at a place the commissioner designates.
The commissioner shall notify all parties, by new text begincertified new text endmail, of the new text begindate, new text endtimenew text begin,new text end and place
of the hearing.

Sec. 9.

Minnesota Statutes 2008, section 197.60, subdivision 1, is amended to read:


Subdivision 1.

Appointment; administrative support.

The county board of any
county deleted text beginexcept Clay Countydeleted text end, or the county boards of any two or more counties acting
pursuant to deleted text beginthe provisions ofdeleted text end section 197.602, shall appoint a veterans service officer
deleted text begin and shall provide necessary clerical help, office space, equipment, and supplies for the
officer, together with reimbursement for mileage and other traveling expenses necessarily
incurred in the performance of duties;
deleted text end and may appoint one or more assistant veterans
service officers who deleted text beginshall have the qualifications prescribed indeleted text endnew text begin are qualified undernew text end section
197.601. deleted text beginThe county board of Clay County may appoint a veterans service officer and
assistant veterans service officers as provided in this subdivision.
deleted text end new text beginThe county board or
boards shall provide necessary clerical help, office space, equipment, and supplies for the
officer, and reimbursement for mileage and other traveling expenses necessarily incurred
in the performance of duties.
new text endSubject to the direction and control of the veterans service
officer, the assistant veterans service officer may exercise all the powers, and shall perform
the duties, of the veterans service officer, and deleted text beginshall bedeleted text endnew text begin isnew text end subject to all the provisions of
sections 197.60 to 197.606 relating to a veterans service officer. Every county officer and
agency shall cooperate with the veterans service officer and shall provide the officer with
information necessary in connection with the performance of duties.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 10.

Minnesota Statutes 2008, section 197.601, is amended to read:


197.601 QUALIFICATIONS OF VETERANS SERVICE OFFICERS.

No person shall be appointed a veterans service officer new text beginor an assistant county
veterans service officer
new text endunder sections 197.60 to 197.606 deleted text beginwithout the following
qualifications
deleted text endnew text begin unless the person isnew text end:

(1) deleted text beginresidence indeleted text endnew text begin a resident ofnew text end the state of Minnesota;

(2) deleted text begincitizenship indeleted text endnew text begin a citizen ofnew text end the United States;new text begin and
new text end

(3) new text begina new text endveterannew text begin,new text end as defined in section 197.447deleted text begin;deleted text endnew text begin.new text end

deleted text begin (4) education and training for the duties of veterans service officer;
deleted text end

deleted text begin (5) knowledge of the law and the regulations and rulings of the United States
Veterans Administration applicable to cases before it and the administration thereof.
deleted text end

new text begin In addition, a person accepting appointment to the position of county veterans
service officer or assistant county veterans service officer or other equivalent assistant
position must agree to receive, within six months of the appointment, training and
education for the duties of the position, including development of an effective working
knowledge of relevant laws, rules, and regulations pertaining to the United States
Department of Veterans Affairs, as applicable to veterans cases before the department and
the administration of those cases.
new text end

Sec. 11.

Minnesota Statutes 2008, section 197.605, is amended to read:


197.605 deleted text beginSUPERVISIONdeleted text endnew text begin DEPARTMENT AS A RESOURCE TO COUNTIESnew text end.

Subdivision 1.

deleted text beginMethods of operationdeleted text endnew text begin Resources availablenew text end.

deleted text beginEvery veterans service
officer appointed under sections 197.60 to 197.606 shall be under the general supervision
of the commissioner of veterans affairs as to methods of operation.
deleted text end new text beginThe commissioner of
veterans affairs shall make resources available within the Department of Veterans Affairs
to every county that operates a county veterans service office, to assist the county with
maintaining efficient and effective services to veterans. To receive available resources
from the department, a county must formally request them from the commissioner and
invite the commissioner or the commissioner's designee or designees into the county
as necessary to provide those resources. The commissioner shall consult with the
Association of Minnesota Counties and the Minnesota Association of County Veterans
Service Officers in developing a list of resources available to counties in support of their
county veterans service offices.
new text end

Subd. 2.

Use of agencies to present claims.

Every veterans service officer new text beginand
assistant veterans service officer
new text endappointed under sections 197.60 to 197.606 shall use
the new text beginMinnesota new text endDepartment of Veterans Affairs or any organization recognized by the
United States new text beginDepartment of new text endVeterans deleted text beginAdministrationdeleted text endnew text begin Affairsnew text end, as may be designated by the
veteran by power of attorney, in the presentation of claims to the United States new text beginDepartment
of
new text endVeterans deleted text beginAdministrationdeleted text endnew text begin Affairsnew text end for the benefits referred to in section 197.603.

deleted text begin Subd. 3. deleted text end

deleted text begin Rules. deleted text end

deleted text begin The commissioner of veterans affairs shall have authority to
prescribe such rules as are necessary for compliance with this section and the efficient
uniform administration of sections 197.60 to 197.606. Such rules shall not apply to the
appointment, tenure, compensation, or working conditions of a veterans service officer
appointed under sections 197.60 to 197.606.
deleted text end

Subd. 4.

Certification.

The commissioner of veterans affairs shall establish a
certification process for veterans service officers. In doing so, the commissioner shall
consult with the Minnesota Association of County Veterans Service Officers.

Sec. 12.

Minnesota Statutes 2008, section 197.606, is amended to read:


197.606 CLASSED AS COUNTY EMPLOYEES.

Veterans service officers and assistant veterans service officers appointed under
sections 197.60 to 197.606 are employees of the counties by which they are employed, and
are under the exclusive jurisdiction and control of deleted text beginsuchdeleted text endnew text begin thosenew text end counties deleted text beginand the Department
of Veterans Affairs as herein provided
deleted text end.

Sec. 13.

Minnesota Statutes 2008, section 197.609, subdivision 1, is amended to read:


Subdivision 1.

Establishment and administration.

An education program for
county veterans service officers is established to be administered by the commissioner of
veterans affairsnew text begin, with assistance and advice from the Minnesota Association of County
Veterans Service Officers
new text end.

Sec. 14.

Minnesota Statutes 2008, section 197.609, subdivision 2, is amended to read:


Subd. 2.

Eligibility.

To be eligible for the program in this section, a person must
currently be employed as a county veterans service officer new text beginor assistant county veterans
service officer,
new text endas authorized by sections 197.60 to 197.606, and be certified to serve in
that position by the commissioner of veterans affairs or be serving a probationary period
as authorized by section 197.60, subdivision 2.

Sec. 15.

Minnesota Statutes 2008, section 197.75, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this
section.

(b) "Commissioner" means the commissioner of veterans affairs.

(c) "Deceased veteran" means a veteran deleted text beginwho was a Minnesota resident within six
months of the time of the person's entry into the United States armed forces and
deleted text end who has
died as a result of deleted text beginthatdeleted text end new text beginthe person's military new text endservice, as determined by the United States
Veterans Administrationnew text begin, and who was a resident of this state: (1) within six months of
entering the United States armed forces, or (2) for the six months preceding the veteran's
date of death
new text end.

(d) "Eligible child" means a person who:

(1) is the natural or adopted deleted text beginson or daughterdeleted text end new text beginchild or stepchildnew text end of a deceased veteran;
and

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

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

(f) "Eligible spouse" means the surviving spouse of a deceased veteran.

(g) "Eligible veteran" means a veteran who:

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

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

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

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

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

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

(j) "Veteran" has the meaning given in section 197.447.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010, for educational benefits
provided to an eligible child or eligible spouse on or after that date.
new text end

Sec. 16. new text beginPLANNING NEW VETERANS CEMETERIES.
new text end

new text begin The commissioner of veterans affairs shall determine a suitable site and plan for
three new state veterans cemeteries, one to be located in northeastern Minnesota, one to
be located in southeastern Minnesota, and one to be located in southwestern Minnesota.
In determining the site for a cemetery, the commissioner shall consider available public
land options and shall seek proposals for donated land from interested counties, local
communities, civic organizations, veterans service organizations, and individuals. For
the veterans cemetery in southwestern Minnesota, the commissioner must work with the
commissioner of natural resources to secure a cemetery site at Fort Ridgely State Park, if
feasible, or on other public land in that immediate vicinity.
new text end

new text begin The commissioner's planning process for a state veterans cemetery must include, at a
minimum, the following actions:
new text end

new text begin (1) determining the need for the cemetery;
new text end

new text begin (2) investigating the availability of suitable land for the cemetery;
new text end

new text begin (3) assessment of impacts of the cemetery;
new text end

new text begin (4) encouragement of support from veteran service organizations and local
governments; and
new text end

new text begin (5) preparation and submission of a preapplication for a grant from the United States
Department of Veterans Affairs for commitment of funding for establishing the cemetery.
new text end

new text begin By January 15, 2011, the commissioner shall report to the chair and ranking minority
member of the house of representatives and senate committees having responsibility for
veterans affairs with a report of the commissioner's progress in implementing this section.
new text end

Sec. 17. new text beginNONCOMPLIANCE.
new text end

new text begin A county that on July 1, 2010, is noncompliant with regard to the qualifications of
an assistant county veterans service officer, under Minnesota Statutes, section 197.601,
must comply with the requirements of that section no later than June 30, 2013, and must
remain in compliance after that date.
new text end

Sec. 18. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1, 2, 5, and 16 are effective the day following final enactment. All other
sections are effective July 1, 2010.
new text end