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Minnesota Legislature

Office of the Revisor of Statutes

SF 1925

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

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to state government; appropriating money for agricultural, veterans,
and military affairs purposes; establishing and modifying certain programs;
modifying certain accounts and fees; amending Minnesota Statutes 2006,
sections 17.03, subdivision 3; 17.101, subdivision 2; 17.102, subdivisions 1, 3,
4, by adding subdivisions; 17.117, subdivisions 5a, 5b; 18B.33, subdivision 1;
18B.34, subdivision 1; 18B.345; 18C.305, by adding a subdivision; 18E.03,
subdivision 4; 28A.082, subdivision 1; 41B.043, subdivisions 2, 3, 4; 41B.047;
41B.055; 41B.06; 41C.05, subdivision 2; 168.1255, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapters 35; 41A; 192;
repealing Minnesota Statutes 2006, sections 17.109; 18B.315; 18C.425,
subdivision 5; 41B.043, subdivision 1a.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

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

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

new text begin 2008
new text end
new text begin 2009
new text end
new text begin Total
new text end
new text begin General
new text end
new text begin $
new text end
new text begin 50,682,000
new text end
new text begin $
new text end
new text begin 47,327,000
new text end
new text begin $
new text end
new text begin 98,009,000
new text end
new text begin Remediation
new text end
new text begin 388,000
new text end
new text begin 388,000
new text end
new text begin 776,000
new text end
new text begin Total
new text end
new text begin $
new text end
new text begin 51,070,000
new text end
new text begin $
new text end
new text begin 47,715,000
new text end
new text begin $
new text end
new text begin 98,785,000
new text end

Sec. 2. new text beginAGRICULTURE APPROPRIATIONS.
new text end

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

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

Sec. 3. new text beginDEPARTMENT OF AGRICULTURE
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 45,291,000
new text end
new text begin $
new text end
new text begin 41,949,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2008
new text end
new text begin 2009
new text end
new text begin General
new text end
new text begin 44,903,000
new text end
new text begin 41,561,000
new text end
new text begin Remediation
new text end
new text begin 388,000
new text end
new text begin 388,000
new text end

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

new text begin Subd. 2. new text end

new text begin Protection Services
new text end

new text begin 13,775,000
new text end
new text begin 13,995,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 13,387,000
new text end
new text begin 13,607,000
new text end
new text begin Remediation
new text end
new text begin 388,000
new text end
new text begin 388,000
new text end

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

new text begin The commissioner shall continue monitoring
the levels of pesticides in groundwater and
surface waters throughout the state.
new text end

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

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

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

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

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

new text begin Subd. 3. new text end

new text begin Agricultural Marketing and
Development
new text end

new text begin 8,105,000
new text end
new text begin 5,225,000
new text end

new text begin $136,000 the first year and $136,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants
for Minnesota grown promotion under
Minnesota Statutes, section 17.102. Grants
may be made for one year. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2009, for Minnesota
grown grants in this paragraph are available
until June 30, 2011. The balance in the
Minnesota grown matching account in the
agricultural fund is canceled to the Minnesota
grown account in the agricultural fund and
the Minnesota grown matching account is
abolished.
new text end

new text begin $210,000 the first year and $210,000 the
second year are for grants to farmers for
demonstration projects involving sustainable
agriculture as authorized in Minnesota
Statutes, section 17.116. Of the amount
for grants, up to $20,000 may be used for
dissemination of information about the
demonstration projects. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2009, for sustainable
agriculture grants in this paragraph are
available until June 30, 2011.
new text end

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

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

new text begin $3,000,000 the first year is for the agricultural
best management practices loan program
for capital equipment loans for: (1) persons
using native, perennial cropping systems for
energy or seed production; or (2) bioenergy
producers using feed stocks from plants
or animals or their by-products. This is a
onetime appropriation.
new text end

new text begin $150,000 the first year and $150,000
the second year are appropriated from
the general fund to the commissioner of
agriculture for annual cost-share payments
to resident farmers or persons who sell,
process, or package agricultural products
in this state for the costs of organic
certification. Annual cost-share payments
per farmer must be two-thirds of the cost
of the certification or $350, whichever is
less. In any year that a resident farmer or
person who sells, processes, or packages
agricultural products in this state receives
a federal organic certification cost-share
payment, that resident farmer or person is
not eligible for state cost-share payments.
A certified farmer is eligible to receive
annual certification cost-share payments for
up to five years. $15,000 each year is for
organic market and program development.
The commissioner may allocate any
excess appropriation in either fiscal year
for organic producer education efforts,
assistance for persons transitioning from
conventional to organic agriculture, or
sustainable agriculture demonstration grants
authorized under Minnesota Statutes, section
17.116, and pertaining to organic research
or demonstration. This appropriation is
available until expended.
new text end

new text begin Subd. 4. new text end

new text begin Value-Added Agricultural Products
new text end

new text begin 16,768,000
new text end
new text begin 16,268,000
new text end

new text begin $15,168,000 the first year and $15,168,000
the second year are for ethanol producer
payments under Minnesota Statutes, section
new text begin41A.09new text end. If the total amount for which all
producers are eligible in a quarter exceeds
the amount available for payments, the
commissioner shall make payments on a
pro rata basis. If the appropriation exceeds
the total amount for which all producers
are eligible in a fiscal year for scheduled
payments and for deficiencies in payments
during previous fiscal years, the balance
in the appropriation is available to the
commissioner for value-added agricultural
programs including the value-added
agricultural product processing and
marketing grant program under Minnesota
Statutes, section new text begin17.101, subdivision 5new text end. The
appropriation remains available until spent.
new text end

new text begin $100,000 the first year and $100,000 the
second year are for ethanol combustion
efficiency grants under Minnesota Statutes,
section new text begin41A.09new text end, subdivision 9.
new text end

new text begin $750,000 the first year and $1,000,000 the
second year are for grants to the Minnesota
Institute for Sustainable Agriculture at
the University of Minnesota to provide
funds for on-station and on-farm field scale
research and outreach to develop and test
the agronomic and economic requirements
of diverse stands of prairie plants and other
perennials for bioenergy systems including,
but not limited to, multiple species selection
and establishment, ecological management
between planting and harvest, harvest
technologies, financial and agronomic
risk management, farmer goal setting and
adoption of technologies, integration of
wildlife habitat into management approaches,
evaluation of carbon and other benefits, and
robust policies needed to induce farmer
conversion on marginal lands.
new text end

new text begin $150,000 the first year is for grants to
nongovernmental entities to assist in the
development of business plans and structures
related to community ownership of eligible
cellulosic biofuel facilities under Minnesota
Statutes, section 41A.10. This is a onetime
appropriation and is available until June 30,
2009.
new text end

new text begin $300,000 is for a grant to the Bois Forte
Band of Chippewa for a feasibility study of
a renewable energy biofuels demonstration
facility on the Bois Forte Reservation in
St. Louis and Koochiching Counties. The
grant shall be used by the Bois Forte Band
to conduct a detailed feasibility study of
the economic and technical viability of
developing a multistream renewable energy
biofuels demonstration facility on Bois Forte
Reservation land to utilize existing forest
resources, woody biomass, and cellulosic
waste to produce ethanol or butanol, or both,
for use as a liquid fuel source or a gasoline
supplement and oxygenation agent. This is a
onetime appropriation and is available until
June 30, 2009.
new text end

new text begin $300,000 is for a grant to the White Earth
Band of Chippewa for a feasibility study
of a renewable energy biofuels research
and production facility on the White Earth
Reservation in Mahnomen County. The
grant must be used by the White Earth Band
and the University of Minnesota to conduct
a detailed feasibility study of the economic
and technical viability of developing a
multistream renewable energy biofuels
demonstration facility on White Earth
Reservation land to utilize existing forest
resources, woody biomass, and cellulosic
waste to produce ethanol or butanol, or both,
for use as a liquid fuel source or a gasoline
supplement and oxygenation agent. This is a
onetime appropriation and is available until
June 30, 2009.
new text end

new text begin Subd. 5. new text end

new text begin Administration and Financial
Assistance
new text end

new text begin 6,643,000
new text end
new text begin 6,461,000
new text end

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

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

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

new text begin $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.
new text end

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

new text begin $250,000 the first year is for a grant to the
Minnesota Turf Seed Council for basic
and applied agronomic research on native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic
or applied research. This is a onetime
appropriation and is available until spent.
new text end

new text begin $200,000 the first year and $200,000 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.
new text end

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

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

new text begin $250,000 the first year and $250,000 the
second year are from the general fund
for a grant to the Minnesota Agricultural
Education Leadership Council for programs
of the council under Minnesota Statutes,
chapter 41D.
new text end

Sec. 4. new text beginBOARD OF ANIMAL HEALTH
new text end

new text begin $
new text end
new text begin 3,479,000
new text end
new text begin $
new text end
new text begin 3,466,000
new text end

new text begin $448,000 the first year and $363,000 the
second year are for bovine tuberculosis
eradication and surveillance in cattle herds.
new text end

new text begin $200,000 the first year and $200,000 the
second year are for a program to control
paratuberculosis (Johne's disease) in
domestic bovine herds.
new text end

new text begin $80,000 the first year and $80,000 the second
year are for a program to investigate the
avian pneumovirus disease and to identify
the infected flocks. This appropriation must
be matched on a dollar-for-dollar or in-kind
basis with nonstate sources and is in addition
to money currently designated for turkey
disease research. Costs of blood sample
collection, handling, and transportation,
in addition to costs associated with early
diagnosis tests and the expenses of vaccine
research trials, may be credited to the match.
new text end

new text begin $400,000 the first year and $400,000 the
second year are for the purposes of cervidae
inspection as authorized in Minnesota
Statutes, section 35.155.
new text end

Sec. 5. new text beginAGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
new text end

new text begin $
new text end
new text begin 2,300,000
new text end
new text begin $
new text end
new text begin 2,300,000
new text end

new text begin $700,000 the first year and $700,000 the
second year are for technical assistance
and technology transfer to bioenergy crop
producers and users.
new text end

Sec. 6. new text beginCOMPENSATION INCREASES
new text end

new text begin The appropriations in this article, and any
statutory appropriations from which state
employee compensation is paid from any
fund, include an amount sufficient to fund
compensation increases of at least 3.25
percent of the 2007 compensation base for
the first year, compounded at the rate of 3.25
percent for the second year. This amount
must be used for that purpose and no other.
new text end

Sec. 7.

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


Subd. 3.

Cooperation with federal agencies.

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

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

Sec. 8.

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


Subd. 2.

Agricultural development grants and contracts.

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

(a) eligibility criteria;

(b) application procedures;

(c) provisions for application review and project approval;

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

(e) other provisions the commissioner finds necessary.

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

Sec. 9.

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


Subdivision 1.

Establishment and use of label.

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

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

Sec. 10.

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


Subd. 3.

License.

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

Sec. 11.

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


Subd. 4.

Minnesota grown account.

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

Sec. 12.

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


new text begin Subd. 4a. new text end

new text begin Funding sources. new text end

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

Sec. 13.

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


new text begin Subd. 4b. new text end

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

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

Sec. 14.

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


Subd. 5a.

Agricultural and environmental revolving accounts.

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

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

Sec. 15.

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


Subd. 5b.

Application fee.

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

Sec. 16.

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


Subdivision 1.

Requirement.

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

deleted text begin (b) A person with a commercial applicator license may not apply pesticides on
or into surface waters without an aquatic pest control license under section deleted text begin18B.315deleted text end,
except an aquatic pest control license is not required for licensed commercial applicators
applying pesticides for the purposes of:
deleted text end

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

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

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

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

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

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

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

Sec. 17.

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


Subdivision 1.

Requirement.

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

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

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

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

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

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

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

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

Sec. 18.

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


18B.345 PESTICIDE APPLICATION ON GOLF COURSES.

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

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

(2) a commercial or noncommercial pesticide applicator with appropriate use
certificationdeleted text begin; ordeleted text endnew text begin.
new text end

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

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

Sec. 19.

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


new text begin Subd. 3. new text end

new text begin Exemption. new text end

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

Sec. 20.

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


Subd. 4.

Fee.

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

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

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

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

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

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

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

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

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

deleted text begin (6) a $20 surcharge to be imposed on aquatic pest control licenses under section
deleted text begin18B.315deleted text end.
deleted text end

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

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

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

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

Sec. 21.

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


Subdivision 1.

Fees; application.

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

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

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

Sec. 22.

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

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

new text begin (b) The board must conduct a lien or mortgage search with the county recorder or
secretary of state. If there is a lien or mortgage against the animal, the board shall include
the name of the mortgagee or lender on the indemnity payment. The board is not liable if a
mortgagee or lender is not named on the payment.
new text end

Sec. 23.

new text begin [41A.10] CELLULOSIC BIOFUEL DEVELOPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin A sum sufficient to make the payments required
by this section is annually appropriated from the general fund to the commissioner of
agriculture.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section and sections 17.118, 41A.11,
and 103F.518, the terms defined in this subdivision have the meanings given them.
new text end

new text begin (a) "Cellulosic biofuel" means transportation fuel derived from cellulosic materials.
new text end

new text begin (b) "Cellulosic material" means an agricultural feedstock primarily comprised
of cellulose, hemicellulose, or lignin or a combination of those ingredients grown on
agricultural lands.
new text end

new text begin (c) "Agricultural land" means land used for horticultural, row, close grown, pasture,
and hayland crops; growing nursery stocks; animal feedlots; farm yards; associated
building sites; and public and private drainage systems and field roads located on any of
that land.
new text end

new text begin (d) "Cellulosic biofuel facility" means a facility at which cellulosic biofuel is
produced.
new text end

new text begin (e) "Perennial crops" means agriculturally produced plants that have a life cycle of at
least three years at the location where the plants are being cultivated.
new text end

new text begin (f) "Perennial cropping system" means an agricultural production system that
utilizes a perennial crop.
new text end

new text begin (g) "Native species" means a plant species which was present in a defined area of
Minnesota prior to European settlement (circa 1850). A defined area may be an ecological
classification province. Wild-type varieties therefore are regional or local ecotypes that
have not undergone a selection process.
new text end

new text begin (h) "Diverse native prairie" means a prairie planted from a mix of local Minnesota
native prairie species. A selection from all available native prairie species may be made so
as to match species appropriate to local site conditions.
new text end

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

new text begin (j) "Eligible biofuel producer" means a cellulosic biofuel facility that is at least 60
percent owned and controlled by farmers, as defined in section 500.24, subdivision 2,
paragraph (n), or natural persons who reside in the county where the cellulosic biofuel
facility is located or in an adjoining county.
new text end

new text begin Subd. 3. new text end

new text begin Cellulosic biofuel production goal. new text end

new text begin The state cellulosic biofuel production
goal is one-quarter of the total amount necessary for ethanol use required under section
239.791, subdivision 1a, by 2015 or when cellulosic biofuel facilities in the state attain a
total annual production level of 60,000,000 gallons, whichever is first.
new text end

new text begin Subd. 4. new text end

new text begin Cellulosic biofuel producer payments. new text end

new text begin (a) The commissioner shall
make cash payments to eligible producers of cellulosic biofuel located in the state that
have begun production at a specific location by June 30, 2012. For the purpose of this
subdivision, an entity that holds a controlling interest in more than one cellulosic biofuel
plant is considered a single eligible producer. The amount of the payment for each eligible
producer's annual production, except as provided in paragraph (d), is 15 cents per gallon
for each gallon of cellulosic biofuel produced at a specific location for five years after the
start of production. Cellulosic materials utilized in the production of cellulosic biofuel
must follow best available management practices or standards for their establishment,
growing, and harvesting.
new text end

new text begin (b) In lieu of the payment under paragraph (a), the commissioner shall make cash
payments to eligible producers of cellulosic biofuel located in the state that utilize
perennial, native cellulosic material grown that follow the standards derived under the
reinvest in Minnesota clean energy program that have begun production at a specific
location by June 30, 2015. For the purpose of this subdivision, an entity that holds a
controlling interest in more than one cellulosic biofuel facility is considered a single
eligible producer. The amount of the payment for each eligible biofuel producer's annual
production, except as provided in paragraph (d), is 30 cents per gallon for each gallon of
cellulosic biofuel produced at a specific location for ten years after the start of production.
new text end

new text begin (c) No payments shall be made for cellulosic biofuel production that occurs after
June 30, 2022, for those eligible biofuel producers under paragraph (a), and 2025 for
those eligible biofuel producers under paragraph (b). An eligible producer of cellulosic
biofuel shall not transfer the producer's eligibility for payments under this section to a
cellulosic biofuel facility at a different location.
new text end

new text begin (d) If the level of production at a cellulosic biofuel facility increases due to an
increase in the production capacity of the facility, the payment under paragraph (a) applies
to the additional increment of production until five years after the increased production
began and under paragraph (b) applies to the additional increment of production until ten
years after the increased production began. If capacity under paragraph (a) is converted
to payment under paragraph (b), the ten-year payment limit starts when the capacity
increased under paragraph (a). Once a facility's production capacity reaches 15,000,000
gallons per year, no additional increment will qualify for the payment.
new text end

new text begin (e) Payments under paragraphs (a) and (b) to all eligible biofuel producers, plus
payments under section 41A.09 to ethanol producers, may not exceed $16,000,000 in a
fiscal year. Total payments under paragraphs (a) and (b) to an eligible biofuel producer
in a fiscal year may not exceed the amount necessary for 15,000,000 gallons of biofuel
production.
new text end

new text begin (f) An eligible biofuel producer may blend cellulosic feedstocks eligible under
paragraphs (a) and (b), but only the percentage of gallons that is attributable to feedstocks
under paragraph (a) receive 15 cents per gallon, and those under paragraph (b) receive
30 cents per gallon.
new text end

new text begin (g) By the last day of October, January, April, and July, each eligible biofuel producer
shall file a claim for payment for cellulosic biofuel production during the preceding three
calendar months. An eligible biofuel producer that files a claim under this subdivision shall
include a statement of the eligible biofuel producer's total cellulosic biofuel production in
Minnesota during the quarter covered by the claim. For each claim and statement of total
cellulosic biofuel production filed under this subdivision, the volume of cellulosic biofuel
production must be examined by an independent certified public accountant in accordance
with standards established by the American Institute of Certified Public Accountants.
new text end

new text begin (h) Payments must be made November 15, February 15, May 15, and August 15.
A separate payment must be made for each claim filed. The total quarterly payment
to an eligible producer under this paragraph may not exceed the amount necessary for
3,750,000 gallons of biofuel production.
new text end

new text begin (i) If an eligible biofuel producer becomes ineligible within five years after the last
payment has been received under paragraph (a), and ten years after under paragraph (b),
all payments received for biofuel production must be refunded to the commissioner.
Refunded payments received under this paragraph shall be deposited in the general fund.
new text end

new text begin (j) Annually, within 90 days of the end of its fiscal year, a cellulosic biofuel producer
receiving payments under this subdivision must file a disclosure statement on a form
provided by the commissioner. The initial disclosure statement must include a summary
description of the organization of the business structure of the claimant, a listing of the
percentages of ownership and governance by any person or other entity with an ownership
interest or governance rights of five percent or greater, and a copy of its annual audited
financial statements, including the auditor's report and footnotes. The disclosure statement
must include information demonstrating what percentage of the entity receiving payments
under this section is owned and governed by farmers or other entities that reside within the
county where the cellulosic biofuel facility is located. Subsequent annual reports must
reflect noncumulative changes in ownership of ten percent or more of the entity. The
report need not disclose the identity of the persons or entities, but the claimant must
retain information within its files confirming the accuracy of the data provided. This data
must be made available to the commissioner upon request. Not later than the 15th day
of February in each year, the commissioner shall deliver to the chairs of the standing
committees of the senate and the house of representatives that deal with agricultural policy
and agricultural finance an annual report summarizing aggregated and facility data from
plants receiving payments under this section during the preceding calendar year. Audited
financial statements and notes and disclosure statements submitted to the commissioner
are nonpublic data under section 13.02, subdivision 9. Notwithstanding the provisions of
chapter 13 relating to nonpublic data, summaries of the submitted audited financial reports
and notes and disclosure statements will be contained in the report to the committee chairs
and will be public data.
new text end

new text begin (k) Bioenergy production for which payment has been received under section
41A.11 is not eligible for payment under this section.
new text end

Sec. 24.

new text begin [41A.11] BIOENERGY PRODUCTION INCENTIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin A sum sufficient to make the payments required
by this section is annually appropriated from the general fund to the commissioner of
agriculture.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin The definitions in section 41A.10 apply to this section.
new text end

new text begin For the purposes of this section, "bioenergy production" means the generation of
energy for commercial heat, industrial process heat, or electrical power from a cellulosic
material or other material composed of agricultural feedstocks from plants or animals or
their by-products for a new or expanded capacity facility or a facility that is displacing
existing use of fossil fuel after the effective date of this section.
new text end

new text begin Subd. 3. new text end

new text begin Bioenergy producer payments. new text end

new text begin (a) The commissioner shall make
cash payments to eligible producers of bioenergy located in the state that have begun
production at a specific location by June 30, 2009. For the purpose of this subdivision,
an entity that holds a controlling interest in more than one bioenergy production facility
is considered a single eligible producer. The amount of the payment for each producer's
annual production, except as provided in paragraph (d), is 75 cents per 1,000,000 British
thermal units (Btu) of bioenergy production produced at a specific location for three
years after the start of production. Cellulosic materials utilized for bioenergy production
must follow best available management practices or standards for their establishment,
growing, and harvesting.
new text end

new text begin (b) The commissioner shall make cash payments to producers of bioenergy located
in the state that utilize perennial, native cellulosic material grown according to standards
derived under the reinvest in Minnesota clean energy program that have begun a practice
at a specific location by June 30, 2015. For the purpose of this subdivision, an entity that
holds a controlling interest in more than one bioenergy production facility is considered
a single producer. The amount of the payment for each producer's annual production,
except as provided in paragraph (d), is $1.50 per 1,000,000 British thermal units (Btu)
of bioenergy production produced at a specific location for ten years after the start of
production.
new text end

new text begin (c) No payments shall be made for bioenergy production that occurs after June 30,
2012, for those eligible bioenergy producers under paragraph (a), and 2025 for those
eligible biofuel producers under paragraph (b). A producer of bioenergy production shall
not transfer the producer's eligibility for payments under this section to a bioenergy
production facility at a different location.
new text end

new text begin (d) If the level of production at a bioenergy production facility increases due to an
increase in the production capacity of the facility, the payment under paragraph (a) applies
to the additional increment of production until three years after the increased production
began, and under paragraph (b), ten years after the increased production began. If capacity
under paragraph (a) is converted to payment under paragraph (b), the ten-year payment
limit starts when the capacity increased under paragraph (a). Once a facility's bioenergy
production capacity reaches 1,500,000,000,000 Btu per year, no additional increment will
qualify for the payment under both paragraphs (a) and (b).
new text end

new text begin (e) Total payments under paragraphs (a) and (b) to all producers may not exceed
$11,000,000 in a fiscal year. Total payments under paragraphs (a) and (b) to a producer in
a fiscal year may not exceed $2,250,000.
new text end

new text begin (f) An eligible facility may blend a cellulosic feedstock with other fuels in the
bioenergy production facility, but only the percentage attributable to cellulosic material
listed is eligible to receive the producer payment.
new text end

new text begin (g) An eligible bioenergy producer may blend the cellulosic materials eligible under
paragraphs (a) and (b), but only the percentage that is attributable to feedstocks under
paragraph (a) receive 75 cents per 1,000,000 Btu and those under paragraph (b) receive
$1.50 per 1,000,000 Btu.
new text end

new text begin (h) By the last day of October, January, April, and July, each producer shall file a
claim for payment for bioenergy production during the preceding three calendar months.
A producer that files a claim under this subdivision shall include a statement of the
producer's total bioenergy production in Minnesota during the quarter covered by the
claim. For each claim and statement of total bioenergy production filed under this
subdivision, the volume of bioenergy production must be examined by an independent
certified public accountant in accordance with standards established by the American
Institute of Certified Public Accountants.
new text end

new text begin (i) Payments shall be made November 15, February 15, May 15, and August 15.
A separate payment shall be made for each claim filed. The total quarterly payment to a
producer under this paragraph may not exceed $562,500.
new text end

new text begin (j) Biofuel production for which payment has been received under section 41A.10 is
not eligible for payment under this section.
new text end

Sec. 25.

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


Subd. 2.

Specifications.

deleted text beginNo direct loan may exceed $35,000 or $125,000 for a loan
participation.
deleted text end Each deleted text begindirectdeleted text end loan deleted text beginanddeleted text end participation must be secured by a mortgage on real
property and deleted text beginsuchdeleted text end other security as the authority may require.

Sec. 26.

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


Subd. 3.

Application and origination fee.

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

Sec. 27.

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


Subd. 4.

Interest rate.

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

Sec. 28.

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


41B.047 DISASTER RECOVERY LOAN PROGRAM.

Subdivision 1.

Establishment.

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

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

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

Subd. 3.

Eligibility.

To be eligible for this program, a borrower must:

(1) be a resident of this state or a domestic family farm corporation or family farm
partnership as defined in section 500.24, subdivision 2;

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

(3) demonstrate an ability to repay the loan;

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

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

Subd. 4.

Loans.

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

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

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

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

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

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

Sec. 29.

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


41B.055 LIVESTOCK EQUIPMENT PILOT LOAN PROGRAM.

Subdivision 1.

Establishment.

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

Subd. 2.

Eligibility.

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

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

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

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

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

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

Subd. 3.

Loans.

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

(b) Standards for loan amortization must be set by the Rural Finance Authority and
must not exceed deleted text beginsevendeleted text end new text beginten new text endyears.

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

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

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

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

Subd. 4.

Eligible expenditures.

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

(1) fences;

(2) watering facilities;

(3) feed storage and handling equipment;

(4) milking parlors;

(5) milking equipment;

(6) scales;

(7) milk storage and cooling facilities;

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

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

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

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

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

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

Sec. 30.

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


41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.

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

Sec. 31.

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


Subd. 2.

Eligibility; beginning farmers.

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

(1) be a resident of Minnesota;

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

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

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

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

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

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

Sec. 32. new text beginNEXT GENERATION BIOENERGY RECOMMENDATIONS.
new text end

new text begin (a) The commissioner of agriculture, in cooperation with the commissioners of
commerce and natural resources, and the Board of Water and Soil Resources, shall
consult with a broad range of agricultural and conservation stakeholders to develop
recommendations for consideration in the 2008 legislative session for the development
of the next generation bioenergy industry in Minnesota.
new text end

new text begin (b) The recommendations shall include, but are not limited to:
new text end

new text begin (1) the broadest appropriate biomass feedstock definition to optimize the benefits of
bioenergy development to all parts of the state, including agricultural residue, perennial
grasses as an energy crop, and wood;
new text end

new text begin (2) the organization of bioenergy program or programs to maximize coordination
with the expected 2007 federal Farm Bill;
new text end

new text begin (3) the structure of state incentives to encourage local ownership of energy
production and encourage conservation on marginal lands, while ensuring that state
taxpayers receive the most value for the resources dedicated to bioenergy development;
new text end

new text begin (4) the sharing of the cost of the incentives between the agriculture and environment,
natural resources, and energy budgets in the legislative process; and
new text end

new text begin (5) the most promising biomass technologies, and biofuels that can be produced
from these technologies, and the applications for which the fuels can best be used.
new text end

new text begin (c) The commissioner shall provide a report on the recommendations by December
1, 2007, to the chairs of the house and senate committees and divisions with jurisdiction
over agriculture and environment policy and finance.
new text end

Sec. 33. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 17.109; 18B.315; 18C.425, subdivision 5; and
41B.043, subdivision 1a,
new text end new text begin are repealed.
new text end

ARTICLE 2

MILITARY AND VETERANS AFFAIRS APPROPRIATIONS

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

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

new text begin 2008
new text end
new text begin 2009
new text end
new text begin Total
new text end
new text begin General
new text end
new text begin $
new text end
new text begin 32,430,000
new text end
new text begin $
new text end
new text begin 30,956,000
new text end
new text begin $
new text end
new text begin 63,386,000
new text end
new text begin Special Revenue
new text end
new text begin 676,000
new text end
new text begin 676,000
new text end
new text begin 1,352,000
new text end
new text begin Total
new text end
new text begin $
new text end
new text begin 33,106,000
new text end
new text begin $
new text end
new text begin 31,632,000
new text end
new text begin $
new text end
new text begin 64,738,000
new text end

Sec. 2. new text beginMILITARY AND VETERANS APPROPRIATIONS.
new text end

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

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

Sec. 3. new text beginMILITARY AFFAIRS
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 20,775,000
new text end
new text begin $
new text end
new text begin 19,195,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2008
new text end
new text begin 2009
new text end
new text begin General
new text end
new text begin 20,437,000
new text end
new text begin 18,857,000
new text end
new text begin Special Revenue
new text end
new text begin 338,000
new text end
new text begin 338,000
new text end

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

new text begin Subd. 2. new text end

new text begin Maintenance of Training Facilities
new text end

new text begin 6,622,000
new text end
new text begin 6,485,000
new text end

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

new text begin Subd. 3. new text end

new text begin General Support
new text end

new text begin 3,942,000
new text end
new text begin 2,496,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 3,604,000
new text end
new text begin 2,158,000
new text end
new text begin Special Revenue
new text end
new text begin 338,000
new text end
new text begin 338,000
new text end

new text begin $338,000 the first year and $338,000 the
second year are from the "Support Our
Troops" account in the special revenue fund
established in Minnesota Statutes, section
new text begin190.19new text end, for grants under that section.
new text end

new text begin $30,000 each year is for payments of honor
guards as provided in Minnesota Statutes,
section 192.382.
new text end

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

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

new text begin Subd. 4. new text end

new text begin Enlistment Incentives
new text end

new text begin 10,211,000
new text end
new text begin 10,214,000
new text end

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

Sec. 4. new text beginVETERANS AFFAIRS
new text end

new text begin $
new text end
new text begin 12,331,000
new text end
new text begin $
new text end
new text begin 12,437,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2008
new text end
new text begin 2009
new text end
new text begin General
new text end
new text begin 11,993,000
new text end
new text begin 12,099,000
new text end
new text begin Special Revenue
new text end
new text begin 338,000
new text end
new text begin 338,000
new text end

new text begin (a) $750,000 each year is for tribal veterans
services offices.
new text end

new text begin (b) $750,000 each year is for a grant to the
Minnesota Assistance Council for Veterans.
This is a onetime appropriation.
new text end

new text begin (c) $250,000 each year is for marketing
veterans outreach programs. This is a
onetime appropriation.
new text end

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

new text begin (e) $450,000 the first year and $450,000 the
second year are for the higher education
veterans assistance program under Minnesota
Statutes, section 197.585. This appropriation
must be included in the agency appropriation
base through fiscal year 2011.
new text end

new text begin (f) $500,000 each year is for administration
of veterans programming. This appropriation
includes money for the biennium for
an ombudsman for residents and family
members of residents at the Minneapolis
Veterans' Home. The ombudsman must
attend all meetings of the Veterans Homes
Board and provide a report at each
meeting regarding the status of concerns
communicated to the ombudsman.
new text end

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

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

new text begin (i) $500,000 each year is for grants to
counties under the terms of this section.
The commissioner shall issue a request
for proposals for grants to enhance the
benefits, programs, and services provided
to veterans. The request must specify that
priority will be given to proposals that meet
the programmatic goals established by the
commissioner, including proposals that will:
new text end

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

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

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

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

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

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

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

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

Sec. 5. new text beginCOMPENSATION INCREASES
new text end

new text begin The appropriations in this article, and any
statutory appropriations from which state
employee compensation is paid from any
fund, include an amount sufficient to fund
compensation increases of at least 3.25
percent of the 2007 compensation base for
the first year, compounded at the rate of 3.25
percent for the second year. This amount
must be used for that purpose and no other.
new text end

Sec. 6.

Minnesota Statutes 2006, section 168.1255, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin World War II memorial donation matching account. new text end

new text begin Money remaining
in the World War II memorial donation matching account after the state share of the
construction costs of the World War II memorial has been paid in full is appropriated to the
commissioner of veterans affairs for services and programs for veterans and their families.
new text end

Sec. 7.

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

new text begin The adjutant general may activate members to serve as an honor guard at the funeral
of any person who served in the Minnesota National Guard and who was: (1) honorably
discharged after serving six or more years, or (2) in active service. Members activated for
service as honor guards must be paid at the rate provided in section 192.49, subdivision 1
or 2.
new text end