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Key: (1) language to be deleted (2) new language

CHAPTER 45--H.F.No. 2227
An act
relating to appropriations; appropriating money for agriculture, veterans
affairs, and military affairs; modifying disposition of certain revenue and funds;
modifying certain grant and loan requirements; modifying use of Minnesota
grown label; modifying and creating certain funds and accounts; eliminating
the aquatic pest control license; modifying permit and safeguard requirements;
modifying and establishing certain fees and surcharges; creating a food safety
and defense task force; requiring certain studies and reports; providing for
NextGen energy; changing certain provisions related to veterans and members
of the national guard and reserves;amending Minnesota Statutes 2006, sections
3.737, subdivision 1; 3.7371, subdivision 3; 17.03, subdivision 3; 17.101,
subdivision 2; 17.102, subdivisions 1, 3, 4, by adding subdivisions; 17.117,
subdivisions 1, 4, 5a, 5b, 11; 17.982, subdivision 1; 17.983, subdivision 1;
18B.065, subdivisions 1, 2a; 18B.26, subdivision 3; 18B.33, subdivision 1;
18B.34, subdivision 1; 18B.345; 18C.305, by adding a subdivision; 18E.02,
subdivisions 1, 5, by adding a subdivision; 18E.03, subdivision 4; 25.341,
subdivision 1; 28A.04, subdivision 1; 28A.06; 28A.082, subdivision 1; 32.21,
subdivision 4; 32.212; 32.394, subdivision 4; 32.415; 41B.043, subdivisions 2,
3, 4; 41B.047; 41B.055; 41B.06; 41C.05, subdivision 2; 116.0714; 116O.09,
subdivision 2; 197.75; 198.002, subdivision 2; 198.004, subdivision 1; 239.7911,
subdivision 1; 327.201; 343.10; proposing coding for new law in Minnesota
Statutes, chapters 18C; 28A; 35; 41A; 192; 197; repealing Minnesota Statutes
2006, sections 17.109; 18B.315; 18C.425, subdivision 5; 32.213; 35.08; 35.09;
35.10; 35.11; 35.12; 41A.09, subdivision 9; 41B.043, subdivision 1a; Laws
2006, chapter 258, section 14, subdivision 6; Minnesota Rules, parts 1705.0840;
1705.0850; 1705.0860; 1705.0870; 1705.0880; 1705.0890; 1705.0900;
1705.0910; 1705.0920; 1705.0930; 1705.0940; 1705.0950; 1705.0960;
1705.0970; 1705.0980; 1705.0990; 1705.1000; 1705.1010; 1705.1020;
1705.1030; 1705.1040; 1705.1050; 1705.1060; 1705.1070; 1705.1080;
1705.1086; 1705.1087; 1705.1088.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1
AGRICULTURE


Section 1. SUMMARY OF APPROPRIATIONS.
    The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2008
2009
Total

General
$
57,132,000
$
47,159,000
$
104,291,000

Remediation
388,000
388,000
776,000

Total
$
57,520,000
$
47,547,000
$
105,067,000


Sec. 2. AGRICULTURE APPROPRIATIONS.
    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

Available for the Year

Ending June 30

2008
2009


Sec. 3. DEPARTMENT OF AGRICULTURE

Subdivision 1.Total Appropriation
$
50,846,000
$
40,992,000

Appropriations by Fund

2008
2009

General
50,458,000
40,604,000

Remediation
388,000
388,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.Protection Services
15,043,000
13,916,000

Appropriations by Fund

General
14,655,000
13,528,000

Remediation
388,000
388,000
$388,000 the first year and $388,000 the
second year are from the remediation fund
for administrative funding for the voluntary
cleanup program.
$1,100,000 the first year is for research,
evaluation, and effectiveness monitoring of
agricultural practices in restoring impaired
waters. The funding must not be used to
hire additional employees to perform these
activities. This appropriation is available
until spent.
$400,000 the first year is for clean
water legacy technical assistance in the
development of total maximum daily load
(TMDL) plans. This appropriation is
available until spent.
$263,000 the first year and $267,000 the
second year are for additional invasive
species control activities.
$90,000 the first year and $92,000 the second
year are for additional meat inspection
activities.
$205,000 the first year and $205,000 the
second year are for electronic inspection
system costs for dairy and food inspections.
$100,000 the first year and $100,000 the
second year are for emergency planning
activities.
$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. The commissioner shall not
require livestock premise identification for
county and district agricultural societies and
associations and small animal shows.
The commissioner shall convene a task force
to identify, evaluate, and recommend options
for new or additional agricultural or other
trade-related uses of the Port of Duluth. The
task force shall consist of representatives
of the Departments of Agriculture, Natural
Resources, and Employment and Economic
Development as well as the Duluth Port
Authority, the city of Duluth, and other
stakeholders appointed by the commissioner,
including but not limited to, representatives
of the state's commodity trade, transportation,
and storage interests. No later than March 1,
2008, the commissioner shall report to the
chairs of the house and senate committees
with jurisdiction over agriculture finance.


Subd. 3.Agricultural Marketing and
Development
8,547,000
5,157,000
$186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants
for Minnesota grown promotion under
Minnesota Statutes, section 17.102. Grants
may be made for one year. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract on
or before June 30, 2009, for Minnesota grown
grants in this paragraph are available until
June 30, 2011. $50,000 of the appropriation
in each year is for efforts that identify
and promote Minnesota grown products
in retail food establishments including but
not limited to restaurants, grocery stores,
and convenience stores. The balance in the
Minnesota grown matching account in the
agricultural fund is canceled to the Minnesota
grown account in the agricultural fund and
the Minnesota grown matching account is
abolished.
$160,000 the first year and $160,000 the
second year are for grants to farmers for
demonstration projects involving sustainable
agriculture as authorized in Minnesota
Statutes, section 17.116. Of the amount
for grants, up to $20,000 may be used for
dissemination of information about the
demonstration projects. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2009, for sustainable
agriculture grants in this paragraph are
available until June 30, 2011.
$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.
$103,000 the first year and $106,000 the
second year are for additional integrated pest
management activities.
$2,500,000 the first year is for the agricultural
best management practices loan program. At
least $2,000,000 is available for pass-through
to local governments and lenders for
low-interest loans.
$1,000,000 the first year is for the agricultural
best management practices loan program for
capital equipment loans for persons using
native, perennial cropping systems for energy
or seed production. This appropriation is
available until spent. * (The preceding text
beginning "$1,000,000 the first year" was
indicated as vetoed by the governor.)
$100,000 the first year and $100,000 the
second year are for annual cost-share
payments to resident farmers or persons
who sell, process, or package agricultural
products in this state for the costs of organic
certification. Annual cost-share payments
per farmer must be 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. Any unencumbered balance
does not cancel at the end of the first year
and is available for the second year.


Subd. 4.Bioenergy and Value-Added
Agricultural Products
19,918,000
15,168,000
$15,168,000 the first year and $15,168,000
the second year are for ethanol producer
payments under Minnesota Statutes, section
41A.09. If the total amount for which all
producers are eligible in a quarter exceeds
the amount available for payments, the
commissioner shall make payments on a
pro rata basis. If the appropriation exceeds
the total amount for which all producers
are eligible in a fiscal year for scheduled
payments and for deficiencies in payments
during previous fiscal years, the balance
in the appropriation is available to the
commissioner for value-added agricultural
programs including the value-added
agricultural product processing and
marketing grant program under Minnesota
Statutes, section 17.101, subdivision 5. The
appropriation remains available until spent.
$3,000,000 the first year is for grants to
bioenergy projects. The NextGen Energy
Board shall make recommendations to
the commissioner on grants for owners of
Minnesota facilities producing bioenergy,
organizations that provide for on-station,
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, or certain nongovernmental
entities. For the purposes of this paragraph,
"bioenergy" includes transportation fuels
derived from cellulosic material as well as
the generation of energy for commercial heat,
industrial process heat, or electrical power
from cellulosic material via gasification
or other processes. The board must give
priority to a bioenergy facility that is at
least 60 percent owned and controlled by
farmers, as defined in Minnesota Statutes,
section 500.24, subdivision 2, paragraph
(n), or natural persons residing in the
county or counties contiguous to where the
facility is located. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy
production or $500,000, whichever is less.
Grants to nongovernmental entities for the
development of business plans and structures
related to community ownership of eligible
bioenergy facilities together may not exceed
$150,000. The board shall make a good
faith effort to select projects that have
merit and when taken together represent a
variety of bioenergy technologies, biomass
feedstocks, and geographic regions of the
state. Projects must have a qualified engineer
certification on the technology and fuel
source. Grantees shall provide reports at
the request of the commissioner and must
actively participate in the Agricultural
Utilization Research Institute's Renewable
Energy Roundtable. No later than February
1, 2009, the commissioner shall report on
the projects funded under this appropriation
to the house and senate committees with
jurisdiction over agriculture finance. The
commissioner's costs in administering the
program may be paid from the appropriation.
$350,000 the first year is 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. * (The preceding text
beginning "$350,000 the first year" was
indicated as vetoed by the governor.)
$200,000 the first year is for a grant to the
Minnesota Turf Seed Council for basic
and applied agronomic research on native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic
or applied research. The grant recipient
must actively participate in the Agricultural
Utilization Research Institute's Renewable
Energy Roundtable and no later than
February 1, 2009, must report to the house
and senate committees with jurisdiction
over agriculture finance. This is a onetime
appropriation and is available until spent.
$200,000 the first year is for a grant to a joint
venture combined heat and power energy
facility located in Scott or LeSueur County
for the creation of a centrally located biomass
fuel supply depot with the capability of
unloading, processing, testing, scaling, and
storing renewable biomass fuels. The grant
must be matched by at least $3 of nonstate
funds for every $1 of state funds. The grant
recipient must actively participate in the
Agricultural Utilization Research Institute's
Renewable Energy Roundtable and no
later than February 1, 2009, must report
to the house and senate committees with
jurisdiction over agriculture finance. This is
a onetime appropriation and is available until
spent.
$300,000 the first year is for a grant to the
Bois Forte Band of Chippewa for a feasibility
study of a renewable energy biofuels
demonstration facility on the Bois Forte
Reservation in St. Louis and Koochiching
Counties. The grant shall be used by the Bois
Forte Band to conduct a detailed feasibility
study of the economic and technical viability
of developing a multistream renewable
energy biofuels demonstration facility
on Bois Forte Reservation land to utilize
existing forest resources, woody biomass,
and cellulosic material to produce biofuels or
bioenergy. The grant recipient must actively
participate in the Agricultural Utilization
Research Institute's Renewable Energy
Roundtable and no later than February 1,
2009, must report to the house and senate
committees with jurisdiction over agriculture
finance. This is a onetime appropriation and
is available until spent.
$300,000 the first year is for a grant to
the White Earth Band of Chippewa for a
feasibility study of a renewable energy
biofuels production, research, and production
facility on the White Earth Reservation in
Mahnomen County. The grant must be used
by the White Earth Band and the University
of Minnesota to conduct a detailed feasibility
study of the economic and technical viability
of (1) developing a multistream renewable
energy biofuels demonstration facility on
White Earth Reservation land to utilize
existing forest resources, woody biomass,
and cellulosic material to produce biofuels or
bioenergy, and (2) developing, harvesting,
and marketing native prairie plants and seeds
for bioenergy production. The grant recipient
must actively participate in the Agricultural
Utilization Research Institute's Renewable
Energy Roundtable and no later than
February 1, 2009, must report to the house
and senate committees with jurisdiction
over agriculture finance. This is a onetime
appropriation and is available until spent.
$200,000 the first year is for a grant to the Elk
River Economic Development Authority for
upfront engineering and a feasibility study
of the Elk River renewable fuels facility.
The facility must use a plasma gasification
process to convert primarily cellulosic
material, but may also use plastics and other
components from municipal solid waste, as
feedstock for the production of methanol
for use in biodiesel production facilities.
Any unencumbered balance in fiscal year
2008 does not cancel but is available for
fiscal year 2009. Notwithstanding Minnesota
Statutes, section 16A.285, the agency must
not transfer this appropriation. The grant
recipient must actively participate in the
Agricultural Utilization Research Institute's
Renewable Energy Roundtable and no
later than February 1, 2009, must report
to the house and senate committees with
jurisdiction over agriculture finance. This is
a onetime appropriation and is available until
spent.
$200,000 the first year is for a grant to
Chisago County to conduct a detailed
feasibility study of the economic and
technical viability of developing a
multistream renewable energy biofuels
demonstration facility in Chisago, Isanti,
or Pine County to utilize existing forest
resources, woody biomass, and cellulosic
material to produce biofuels or bioenergy.
Chisago County may expend funds to Isanti
and Pine Counties and the University of
Minnesota for any costs incurred as part
of the study. The feasibility study must
consider the capacity of: (1) the seed bank
at Wild River State Park to expand the
existing prairie grass, woody biomass, and
cellulosic material resources in Chisago,
Isanti, and Pine Counties; (2) willing and
interested landowners in Chisago, Isanti, and
Pine Counties to grow cellulosic materials;
and (3) the Minnesota Conservation Corps,
the sentence to serve program, and other
existing workforce programs in east central
Minnesota to contribute labor to these efforts.
The grant recipient must actively participate
in the Agricultural Utilization Research
Institute's Renewable Energy Roundtable and
no later than February 1, 2009, must report
to the house and senate committees with
jurisdiction over agriculture finance. This is
a onetime appropriation and is available until
spent.


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. No later than
February 1, 2009, the commissioner shall
report to the house and senate committees
with jurisdiction over agriculture finance.
The report must include the progress and
outcome of funded projects as well as the
sentiment of the council concerning the need
for additional research funded through an
industry checkoff fee.
$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.


Sec. 4. BOARD OF ANIMAL HEALTH
$
3,574,000
$
3,455,000
$448,000 the first year and $363,000 the
second year are for bovine tuberculosis
eradication and surveillance in cattle herds.
Of this amount, $159,000 is permanent.
$100,000 the first year is for reimbursements
under Minnesota Statutes, section 35.085.
This appropriation is available until spent.
$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.
$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.
$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.



Sec. 5. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
$
3,100,000
$
3,100,000
$700,000 the first year and $700,000 the
second year are for technical assistance
and technology transfer to bioenergy crop
producers and users.
From the appropriation in both years, the
Agricultural Utilization Research Institute
must continue to monitor and coordinate
renewable energy efforts and opportunities
in the state via the Renewable Energy
Roundtable, the Center for Producer-Owned
Energy, and related initiatives. In addition,
as part of the Renewable Energy Roundtable,
the institute shall convene a Bioenergy
Advisory Committee consisting of, but not
limited to, representatives of the state's
agriculture, natural resources, forestry, and
rural economic development communities
and shall present this group's viewpoints
as part of the institute's participation in the
NextGen Energy Board created in Minnesota
Statutes, section 41A.105.

    Sec. 6. Minnesota Statutes 2006, section 3.737, subdivision 1, is amended to read:
    Subdivision 1. Compensation required. (a) Notwithstanding section 3.736,
subdivision 3
, paragraph (e), or any other law, a livestock owner shall be compensated
by the commissioner of agriculture for livestock that is destroyed by a gray wolf or is
so crippled by a gray wolf that it must be destroyed. The 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 a university extension agent
or a conservation officer. In any fiscal year, a livestock owner may not be compensated
for a destroyed animal claim that is less than $100 in value and may be compensated up
to $20,000, as determined under this section. In any fiscal year, the commissioner may
provide compensation for claims filed under this section and section 3.7371 up to a total
of $100,000 for both programs combined.
    (b) Either the agent or the conservation officer must make a personal inspection of
the site. The agent or the conservation officer must take into account factors in addition to
a visual identification of a carcass when making a recommendation to the commissioner.
The commissioner, upon recommendation of the agent or conservation officer, shall
determine whether the livestock was destroyed by a gray wolf and any deficiencies in the
owner's adoption of the best management practices developed in subdivision 5. The
commissioner may authorize payment of claims only if the agent or the conservation
officer has recommended payment. The owner shall file a claim on forms provided by the
commissioner and available at the university extension agent's office.

    Sec. 7. Minnesota Statutes 2006, section 3.7371, subdivision 3, is amended to read:
    Subd. 3. Compensation. The crop owner is entitled to the target price or the
market price, whichever is greater, of the damaged or destroyed crop plus adjustments
for yield loss determined according to agricultural stabilization and conservation service
programs for individual farms, adjusted annually, as determined by the commissioner,
upon recommendation of the county extension agent for the owner's county. The
commissioner, upon recommendation of the agent, shall determine whether the crop
damage or destruction is caused by elk and, if so, the amount of the crop that is damaged
or destroyed. In any calendar fiscal year, a crop owner may not be compensated for a
damaged or destroyed crop that is less than $100 in value and may be compensated up to
$20,000, as determined under this section, if normal harvest procedures for the area are
followed. In any fiscal year, the commissioner may provide compensation for claims filed
under this section and section 3.737 up to a total of $100,000 for both programs combined.

    Sec. 8. Minnesota Statutes 2006, section 17.03, subdivision 3, is amended to read:
    Subd. 3. Cooperation with federal agencies. (a) The commissioner shall cooperate
with the government of the United States, with financial agencies created to assist in the
development of the agricultural resources of this state, and so far as practicable may use
the facilities provided by the existing state departments and the various state and local
organizations. This subdivision is intended to relate to every function and duty which
devolves upon the commissioner.
    (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.

    Sec. 9. 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 biennium year, no organization shall receive more than $70,000 in grants from the
commissioner.

    Sec. 10. 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, raised, processed, or manufactured in this state.
The commissioner may develop labeling statements that apply to specific marketing or
promotional needs. One version of a labeling statement must identify food products
certified as organically grown in this state. The Minnesota grown logo or labeling
statement may be used on raw agricultural 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. 11. 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 $5 $20.

    Sec. 12. 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 to
implement and enforce this section and to promote the Minnesota grown logo and labeling
for the direct costs of implementing the Minnesota grown program.

    Sec. 13. Minnesota Statutes 2006, section 17.102, is amended by adding a subdivision
to read:
    Subd. 4a. Funding sources. The Minnesota grown account shall consist of
license fees, penalties, advertising revenue, revenue from the development and sale of
promotional materials, gifts, and appropriations.

    Sec. 14. Minnesota Statutes 2006, section 17.102, is amended by adding a subdivision
to read:
    Subd. 4b. Appropriations must be matched by private funds. 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.

    Sec. 15. Minnesota Statutes 2006, section 17.117, subdivision 1, is amended to read:
    Subdivision 1. Purpose. The purpose of the agriculture best management practices
loan program is to provide low or no interest financing to farmers, agriculture supply
businesses, and rural landowners, and water-quality cooperatives for the implementation
of agriculture and other best management practices that reduce environmental pollution.

    Sec. 16. Minnesota Statutes 2006, section 17.117, subdivision 4, is amended to read:
    Subd. 4. Definitions. (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
    (b) "Agricultural and environmental revolving accounts" means accounts in the
agricultural fund, controlled by the commissioner, which hold funds available to the
program.
    (c) "Agriculture supply business" means a person, partnership, joint venture,
corporation, limited liability company, association, firm, public service company,
or cooperative that provides materials, equipment, or services to farmers or
agriculture-related enterprises.
    (d) "Allocation" means the funds awarded to an applicant for implementation of best
management practices through a competitive or noncompetitive application process.
    (e) "Applicant" means a local unit of government eligible to participate in this
program that requests an allocation of funds as provided in subdivision 6b.
    (f) "Best management practices" has the meaning given in sections 103F.711,
subdivision 3
, and 103H.151, subdivision 2, or other practices, techniques, and measures
that have been demonstrated to the satisfaction of the commissioner to prevent or reduce
adverse environmental impacts by using the most effective and practicable means of
achieving environmental goals.
    (g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner
applying for a low-interest loan.
    (h) "Commissioner" means the commissioner of agriculture, including when the
commissioner is acting in the capacity of chair of the Rural Finance Authority, or the
designee of the commissioner.
    (i) "Committed project" means an eligible project scheduled to be implemented at
a future date:
    (1) that has been approved and certified by the local government unit; and
    (2) for which a local lender has obligated itself to offer a loan.
    (j) "Comprehensive water management plan" means a state approved and locally
adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331,
103D.401, or 103D.405.
    (k) "Cost incurred" means expenses for implementation of a project accrued because
the borrower has agreed to purchase equipment or is obligated to pay for services or
materials already provided as a result of implementing a prior an approved eligible project.
    (l) "Farmer" means a person, partnership, joint venture, corporation, limited liability
company, association, firm, public service company, or cooperative that regularly
participates in physical labor or operations management of farming and files a Schedule F
as part of filing United States Internal Revenue Service Form 1040 or indicates farming as
the primary business activity under Schedule C, K, or S, or any other applicable report to
the United States Internal Revenue Service.
    (m) "Lender agreement" means an agreement entered into between the commissioner
and a local lender which contains terms and conditions of participation in the program.
    (n) "Local government unit" means a county, soil and water conservation district,
or an organization formed for the joint exercise of powers under section 471.59 with
the authority to participate in the program.
    (o) "Local lender" means a local government unit as defined in paragraph (n), a state
or federally chartered bank, a savings association, a state or federal credit union, Agribank
and its affiliated organizations, or a nonprofit economic development organization or other
financial lending institution approved by the commissioner.
    (p) "Local revolving loan account" means the account held by a local government
unit and a local lender into which principal repayments from borrowers are deposited and
new loans are issued in accordance with the requirements of the program and lender
agreements.
    (q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.
    (r) "Program" means the agriculture best management practices loan program
in this section.
    (s) "Project" means one or more components or activities located within Minnesota
that are required by the local government unit to be implemented for satisfactory
completion of an eligible best management practice.
    (t) "Rural landowner" means the owner of record of Minnesota real estate located
in an area determined by the local government unit to be rural after consideration of
local land use patterns, zoning regulations, jurisdictional boundaries, local community
definitions, historical uses, and other pertinent local factors.
    (u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph
(d), except as expressly limited in this section.

    Sec. 17. 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 agricultural special revenue fund revolving accounts to
receive appropriations, transfers of the balances from previous appropriations for the
activities under this section, and money from other sources. All balances from previous
appropriations for activities under this section and repayments of loans granted under this
section, including principal and interest, must be deposited into the appropriate revolving
account created in this subdivision or the account created in subdivision 13. Interest
earned in an account accrues to that account.
    (b) The money in the revolving accounts and the account created in subdivision 13 is
appropriated to the commissioner for the purposes of this section.

    Sec. 18. 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 agricultural special revenue fund. Interest earned in the account accrues
to the account. Money in the account and interest earned in the accounts established
in the agricultural fund under subdivision 5a are appropriated to the commissioner for
administrative expenses of the program.

    Sec. 19. Minnesota Statutes 2006, section 17.117, subdivision 11, is amended to read:
    Subd. 11. Loans issued to borrower. (a) Local lenders may issue loans only for
projects that are approved and certified by the local government unit as meeting priority
needs identified in a comprehensive water management plan or other local planning
documents, are in compliance with accepted practices, standards, specifications, or
criteria, and are eligible for financing under Environmental Protection Agency or other
applicable guidelines.
    (b) The local lender may use any additional criteria considered necessary to
determine the eligibility of borrowers for loans.
    (c) Local lenders shall set the terms and conditions of loans to borrowers, except that:
    (1) no loan to a borrower may exceed $50,000 $100,000;
    (2) no loan for a project may exceed $50,000 $100,000; and
    (3) no borrower shall, at any time, have multiple loans from this program with a total
outstanding loan balance of more than $50,000 $100,000.
    (d) The maximum term length for conservation tillage projects is five years. The
maximum term length for other projects in this paragraph is ten years.
    (e) Notwithstanding paragraph (c), a local lender may issue a loan of up to $100,000
for a community sewage treatment system serving two or more households.
    (f) (e) Fees charged at the time of closing must:
    (1) be in compliance with normal and customary practices of the local lender;
    (2) be in accordance with published fee schedules issued by the local lender;
    (3) not be based on participation program; and
    (4) be consistent with fees charged other similar types of loans offered by the local
lender.
    (g) (f) The interest rate assessed to an outstanding loan balance by the local lender
must not exceed three percent per year.

    Sec. 20. Minnesota Statutes 2006, section 17.982, subdivision 1, is amended to read:
    Subdivision 1. Criminal penalties. A person who violates a provision of chapter
25, 28A, 29, 31, 31A, 31B, or 34 for which a penalty has not been prescribed is guilty
of a misdemeanor.

    Sec. 21. Minnesota Statutes 2006, section 17.983, subdivision 1, is amended to read:
    Subdivision 1. Administrative penalties; citation. If a person has violated a
provision of chapter 25, 28A, 29, 31, 31A, 31B, 32, or 34, the commissioner may issue a
written citation to the person by personal service or by certified mail. The citation must
describe the nature of the violation and the statute or rule alleged to have been violated;
state the time for correction, if applicable; and the amount of any proposed fine. The
citation must advise the person to notify the commissioner in writing within 30 days if the
person wishes to appeal the citation. If the person fails to appeal the citation, the citation
is the final order and not subject to further review.

    Sec. 22. Minnesota Statutes 2006, section 18B.065, subdivision 1, is amended to read:
    Subdivision 1. Collection and disposal. The commissioner of agriculture shall
establish and operate a program to collect waste pesticides. The program shall must be
made available to agriculture and residential pesticide end users whose waste generating
activity occurs in this state.
EFFECTIVE DATE.This section is effective July 1, 2008, and applies to all
cooperative agreements entered into by the commissioner of agriculture and local units of
government for waste pesticide collection and disposal after that date.

    Sec. 23. Minnesota Statutes 2006, section 18B.065, subdivision 2a, is amended to read:
    Subd. 2a. Disposal site requirement. The commissioner must designate a place
in each county of the state that is available at least every other year for the residents of
each county in the state persons to dispose of unused portions of pesticides in accordance
with subdivision 1. The commissioner shall consult with the person responsible for solid
waste management and disposal in each county to determine an appropriate location.
EFFECTIVE DATE.This section is effective July 1, 2008, and applies to all
cooperative agreements entered into by the commissioner of agriculture and local units of
government for waste pesticide collection and disposal after that date.

    Sec. 24. Minnesota Statutes 2006, section 18B.26, subdivision 3, is amended to read:
    Subd. 3. Application fee. (a) A registrant shall pay an annual application fee for
each pesticide to be registered, and this fee is set at 0.4 percent of annual gross sales
within the state and annual gross sales of pesticides used in the state, with a minimum
nonrefundable fee of $250. The registrant shall determine when and which pesticides
are sold or used in this state. The registrant shall secure sufficient sales information of
pesticides distributed into this state from distributors and dealers, regardless of distributor
location, to make a determination. Sales of pesticides in this state and sales of pesticides
for use in this state by out-of-state distributors are not exempt and must be included in the
registrant's annual report, as required under paragraph (c), and fees shall be paid by the
registrant based upon those reported sales. Sales of pesticides in the state for use outside
of the state are exempt from the application fee in this paragraph if the registrant properly
documents the sale location and distributors. A registrant paying more than the minimum
fee shall pay the balance due by March 1 based on the gross sales of the pesticide by the
registrant for the preceding calendar year. The fee for disinfectants and sanitizers shall be
the minimum. The minimum fee is due by December 31 preceding the year for which
the application for registration is made. The commissioner shall spend at least $300,000
$400,000, not including the commissioner's administrative costs, per fiscal year from the
pesticide regulatory account for the purposes of the waste pesticide collection program.
    (b) An additional fee of $100 must be paid by the applicant for each pesticide to be
registered if the application is a renewal application that is submitted after December 31.
    (c) A registrant must annually report to the commissioner the amount and type of
each registered pesticide sold, offered for sale, or otherwise distributed in the state. The
report shall be filed by March 1 for the previous year's registration. The commissioner
shall specify the form of the report and require additional information deemed necessary
to determine the amount and type of pesticides annually distributed in the state. The
information required shall include the brand name, amount, and formulation of each
pesticide sold, offered for sale, or otherwise distributed in the state, but the information
collected, if made public, shall be reported in a manner which does not identify a specific
brand name in the report.
    (d) A registrant who is required to pay more than the minimum fee for any pesticide
under paragraph (a) must pay a late fee penalty of $100 for each pesticide application fee
paid after March 1 in the year for which the license is to be issued.
EFFECTIVE DATE.This section is effective July 1, 2008, and applies to all
cooperative agreements entered into by the commissioner of agriculture and local units of
government for waste pesticide collection and disposal after that date.

    Sec. 25. 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 or aquatic pest control license.
    (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 18B.315,
except an aquatic pest control license is not required for licensed commercial applicators
applying pesticides for the purposes of:
    (1) pest control on cultivated wild rice;
    (2) mosquito and black fly control operations;
    (3) pest control on rights-of-way;
    (4) aerial pest control operations for emergent vegetation control;
    (5) aerial application of piscicides; and
    (6) pest control for silvicultural operations.
    (c) (b) A commercial applicator licensee must have a valid license identification card
when applying pesticides for hire and must display it upon demand by an authorized
representative of the commissioner or a law enforcement officer. The commissioner shall
prescribe the information required on the license identification card.

    Sec. 26. 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, a licensed aquatic pest control applicator, 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.
    (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:
    (1) mosquito and black fly control operations;
    (2) pest control on rights-of-way;
    (3) pest control operations for purple loosestrife control;
    (4) application of piscicides; and
    (5) pest control for silvicultural operations.
    (c) (b) A licensee must have a valid license identification card when applying
pesticides and must display it upon demand by an authorized representative of the
commissioner or a law enforcement officer. The license identification card must contain
information required by the commissioner.

    Sec. 27. 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; or
    (2) a commercial or noncommercial pesticide applicator with appropriate use
certification; or.
    (3) an aquatic pest control applicator.
    (b) Pesticides determined by the commissioner to be sanitizers and disinfectants are
exempt from the requirements in paragraph (a).

    Sec. 28. Minnesota Statutes 2006, section 18C.305, is amended by adding a
subdivision to read:
    Subd. 3. Exemption. 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.

    Sec. 29. [18C.70] MINNESOTA AGRICULTURAL FERTILIZER RESEARCH
AND EDUCATION COUNCIL.
    Subdivision 1. Establishment; membership. (a) The Minnesota Agricultural
Fertilizer Research and Education Council is established. The council is composed of
12 voting members as follows:
    (1) two members of the Minnesota Crop Production Retailers;
    (2) one member of the Minnesota Corn Growers Association;
    (3) one member of the Minnesota Soybean Growers Association;
    (4) one member of the sugar beet growers industry;
    (5) one member of the Minnesota Association of Wheat Growers;
    (6) one member of the potato growers industry;
    (7) one member of the Minnesota Farm Bureau;
    (8) one member of the Minnesota Farmers Union;
    (9) one member from the Minnesota Irrigators Association;
    (10) one member of the Minnesota Grain and Feed Association; and
    (11) one member of the Minnesota Independent Crop Consultant Association or the
Minnesota certified crop advisor program.
    (b) Council members shall serve three-year terms. After the initial council is
appointed, subsequent appointments must be staggered so that one-third of council
membership is replaced each year. Council members must be nominated by their
organizations and appointed by the commissioner. The council may add ex-officio
members at its discretion. The council must meet at least once per year, with all
related expenses reimbursed by members' sponsoring organizations or by the members
themselves.
    Subd. 2. Powers and duties. The council must review applications and select
projects to receive agricultural fertilizer research and education program grants, as
authorized in section 18C.71. The council must establish a program to provide grants to
research, education, and technology transfer projects related to agricultural fertilizer,
soil amendments, and plant amendments. For the purpose of this section, "fertilizer"
includes soil amendments and plant amendments, but does not include vegetable or
animal manures that are not manipulated. The commissioner is responsible for all fiscal
and administrative duties in the first year and may use up to eight percent of program
revenue to offset costs incurred. No later than October 1, 2007, the commissioner must
provide the council with an estimate of the annual costs the commissioner would incur in
administering the program.
    Subd. 3. Checkoff fees. The council may recommend to the governor and
legislature a checkoff fee to provide funding for grants under section 18C.71.
    Subd. 4. Rules. The commissioner's duties under this section and section 18C.71
are not subject to the provisions of chapter 14.
    Subd. 5. Expiration. This section expires January 8, 2017.
EFFECTIVE DATE.This section is effective January 1, 2008.

    Sec. 30. [18C.71] MINNESOTA AGRICULTURAL FERTILIZER RESEARCH
AND EDUCATION PROGRAM.
    Subdivision 1. Eligible projects. Eligible project activities include research,
education, and technology transfer related to the production and application of fertilizer,
soil amendments, and other plant amendments. Chosen projects must contain a component
of outreach that achieves a timely dissemination of findings and their applicability to the
production agricultural community.
    Subd. 2. Awarding grants. Applications for program grants must be submitted in
the form prescribed by the Minnesota Agricultural Fertilizer Research and Education
Council. Applications must be submitted on or before the deadline prescribed by the
council. All applications are subject to a thorough in-state review by a peer committee
established and approved by the council. Each project meeting the basic qualifications is
subject to a yes or no vote by each council member. Projects chosen to receive funding
must achieve an affirmative vote from at least eight of the 12 council members or
two-thirds of voting members present. Projects awarded program funds must submit an
annual progress report in the form prescribed by the council.
    Subd. 3. Annual audit. The program must have an annual audit of financial
activities, which the council must file with the commissioner on or before June 1 for the
immediately preceding year ending December 31.
    Subd. 4. Expiration. This section expires January 8, 2017.
EFFECTIVE DATE.This section is effective January 1, 2008.

    Sec. 31. Minnesota Statutes 2006, section 18E.02, subdivision 1, is amended to read:
    Subdivision 1. Definitions in chapters 18B, 18C, and 18D apply. The definitions
contained in this section and apply to this chapter. Except for terms defined in this section,
the definitions contained in chapters 18B, 18C, and 18D apply to this chapter.

    Sec. 32. Minnesota Statutes 2006, section 18E.02, subdivision 5, is amended to read:
    Subd. 5. Eligible person. "Eligible person" means:
    (1) a responsible party or an owner of real property, but does not include the state,
a state agency, or a political subdivision of the state, except as provided in clause (2),;
common carriers, as defined by section 218.011, subdivision 10; motor carriers as defined
by section 221.011, subdivision 15, while transporting agricultural chemicals except as
provided in clause (3); or the federal government, or an agency of the federal government;
    (2) the owners of municipal airports in Minnesota where a licensed aerial pesticide
applicator has caused an incident through storage, handling, or distribution operations for
agricultural chemicals if (i) the commissioner has determined that corrective action is
necessary and (ii) the commissioner determines, and the Agricultural Chemical Response
Compensation Board concurs, that based on an affirmative showing made by the owner, a
responsible party cannot be identified or the identified responsible party is unable to
comply with an order for corrective action; or
    (3) a person involved in a transaction relating to real property who is not a responsible
party or owner of the real property and who voluntarily takes corrective action on the
property in response to a request or order for corrective action from the commissioner.

    Sec. 33. Minnesota Statutes 2006, section 18E.02, is amended by adding a subdivision
to read:
    Subd. 7. Incident. "Incident" means a flood, fire, tornado, transportation accident,
storage container rupture, leak, spill, emission discharge, escape, disposal, or other event
that releases an agricultural chemical accidentally or otherwise into the environment and
may cause unreasonable adverse effects on the environment. Incident does not include a
release from the normal use of a product or practice in accordance with law.

    Sec. 34. 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; and
    (5) a $20 surcharge to be imposed on noncommercial applicator license application
fees under section 18B.34, subdivision 5, except a surcharge may not be imposed on a
noncommercial applicator that is a state agency, political subdivision of the state, the
federal government, or an agency of the federal government; and.
    (6) a $20 surcharge to be imposed on aquatic pest control licenses under section
18B.315.
    (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. 35. Minnesota Statutes 2006, section 25.341, subdivision 1, is amended to read:
    Subdivision 1. Requirement. Before a person may: (1) manufacture a commercial
feed in the state; (2) distribute a commercial feed in or into the state; or (3) have the
person's name appear on the label of a commercial feed as guarantor, the person must have
a commercial feed license for each manufacturing or distributing facility. A person who
makes only retail sales of commercial feed bearing labeling or another approved indication
that the commercial feed is from a licensed manufacturer, guarantor, or distributor who
has assumed full responsibility for the tonnage inspection fee due under sections 25.31 to
25.43, guaranteed by another, is not required to obtain a license.

    Sec. 36. Minnesota Statutes 2006, section 28A.04, subdivision 1, is amended to read:
    Subdivision 1. Application; date of issuance. (a) No person shall engage in the
business of manufacturing, processing, selling, handling, or storing food without having
first obtained from the commissioner a license for doing such business. Applications for
such license shall be made to the commissioner in such manner and time as required
and upon such forms as provided by the commissioner and shall contain the name and
address of the applicant, address or description of each place of business, and the nature
of the business to be conducted at each place, and such other pertinent information as
the commissioner may require.
    (b) A retail or wholesale food handler license shall be issued for the period July 1
to June 30 following and shall be renewed thereafter by the licensee on or before July
1 each year, except that:
    (1) licenses for all mobile food concession units and retail mobile units shall must be
issued for the period April 1 to March 31, and shall must be renewed thereafter by the
licensee on or before April 1 each year; and
    (2) a license issued for a temporary food concession stand must have a license
issuance and renewal date consistent with appropriate statutory provisions.
A license for a food broker or for a food processor or manufacturer shall be issued for the
period January 1 to December 31 following and shall be renewed thereafter by the licensee
on or before January 1 of each year, except that a license for a wholesale food processor or
manufacturer operating only at the state fair shall be issued for the period July 1 to June 30
following and shall be renewed thereafter by the licensee on or before July 1 of each year.
A penalty for a late renewal shall be assessed in accordance with section 28A.08.
    (c) A person applying for a new license up to 14 calendar days before the effective
date of the new license period under paragraph (b) must be issued a license for the 14 days
and the next license year as a single license and pay a single license fee as if the 14 days
were part of the upcoming license period.

    Sec. 37. Minnesota Statutes 2006, section 28A.06, is amended to read:
28A.06 EXTENT OF LICENSE.
    No person, except as described in sections 27.03 and 27.04, shall be required to
hold more than one license in order to engage in any aspect of food handling described
in section 28A.05 provided, that each issued license shall be valid for no more than one
place of business, except that a license for a mobile unit or a retail food vehicle, portable
structure, or cart is valid statewide and is required to be issued only once each year unless
the licensee fails to display the license as required by section 28A.07 or it is a seasonal
permanent food stand, seasonal temporary food stand, food cart, or special event food
stand as defined in section 157.15, in which case the duration of the license is restricted by
the limitations found in the definitions in section 157.15.

    Sec. 38. 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
.....
$
156.25 200.00

5,000 - 24,999
.....
$
218.75 275.00

25,000 plus
.....
$
343.75 425.00
    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.

    Sec. 39. [28A.21] FOOD SAFETY AND DEFENSE TASK FORCE.
    Subdivision 1. Establishment. The Food Safety and Defense Task Force is
established to advise the commissioner and the legislature on food issues and food safety.
    Subd. 2. Membership. (a) The Food Safety and Defense Task Force consists of:
    (1) the commissioner of agriculture or the commissioner's designee;
    (2) the commissioner of health or the commissioner's designee;
    (3) a representative of the United States Food and Drug Administration;
    (4) a representative of the United States Department of Agriculture;
    (5) a representative of the Agricultural Utilization Research Institute;
    (6) one member of the Minnesota Grocers Association;
    (7) one member from the University of Minnesota knowledgeable in food and food
safety issues; and
    (8) nine members appointed by the governor who are interested in food and food
safety, of whom:
    (i) two persons are health or food professionals;
    (ii) one person represents a statewide general farm organization;
    (iii) one person represents a local food inspection agency;
    (iv) one person represents a food-oriented consumer group; and
    (v) one person represents a Minnesota-based manufacturer of microbial detection
equipment and remediation products.
    (b) Members shall serve without compensation. Members appointed by the governor
shall serve four-year terms.
    Subd. 3. Organization. (a) The commissioner or the commissioner's designee shall
convene the first meeting of the task force.
    (b) The task force shall meet monthly or as determined by the chair.
    (c) The members of the task force shall annually elect a chair and other officers
as the members deem necessary.
    Subd. 4. Staff. The commissioner shall provide support staff, office space, and
administrative services for the task force.
    Subd. 5. Duties. The task force shall:
    (1) coordinate educational efforts regarding food safety;
    (2) provide advice and coordination to state agencies as requested by the agencies;
    (3) serve as a source of information and referral for the public, news media, and
others concerned with food safety; and
    (4) make recommendations to Congress, the legislative committees with jurisdiction
over agriculture finance and policy, the legislature, and others about appropriate action to
improve food safety in the state.
    Subd. 6. Expiration. Notwithstanding section 15.059, subdivision 5, this section
expires June 30, 2012.

    Sec. 40. Minnesota Statutes 2006, section 32.21, subdivision 4, is amended to read:
    Subd. 4. Penalties. (a) A person, other than a milk producer, who violates this
section is guilty of a misdemeanor or subject to a civil penalty up to $1,000.
    (b) A milk producer may not change milk plants within 30 days, without permission
of the commissioner, after receiving notification from the commissioner under paragraph
(c) or (d) that the milk producer has violated this section.
    (c) A milk producer who violates subdivision 3, clause (1), (2), (3), (4), or (5), is
subject to clauses (1) to (3) of this paragraph.
    (1) Upon notification of the first violation in a 12-month period, the producer must
meet with the qualified dairy sanitarian to initiate corrective action within 30 days.
    (2) Upon the second violation within a 12-month period, the producer is subject to
a civil penalty of $300. The commissioner shall notify the producer by certified mail
stating the penalty is payable in 30 days, the consequences of failure to pay the penalty,
and the consequences of future violations.
    (3) Upon the third violation within a 12-month period, the producer is subject to
an additional civil penalty of $300 and possible revocation of the producer's permit or
certification. The commissioner shall notify the producer by certified mail that all civil
penalties owed must be paid within 30 days and that the commissioner is initiating
administrative procedures to revoke the producer's permit or certification to sell milk
for at least 30 days.
    (d) The producer's shipment of milk must be immediately suspended if the producer
is identified as an individual source of milk containing residues causing a bulk load of
milk to test positive in violation of subdivision 3, clause (6) or (7). The Grade A or
manufacturing grade permit must be converted to temporary status for not more than
30 days and shipment may resume only after subsequent milk has been sampled by
the commissioner or the commissioner's agent and found to contain no residues above
established tolerances or safe levels.
    The Grade A or manufacturing grade permit may be restored if the producer
completes the "Milk and Dairy Beef Residue Prevention Protocol" with a licensed
veterinarian, displays the signed certificate in the milkhouse, and sends verification to the
commissioner within the 30-day temporary permit status period. If the producer does
not comply within the temporary permit status period, the Grade A or manufacturing
grade permit must be suspended. A milk producer whose milk supply is in violation of
subdivision 3, clause (6) or (7), and has caused a bulk load to test positive is subject to
clauses (1) to (3) of this paragraph.
    (1) For the first violation in a 12-month period, the penalty is the value of all milk on
the contaminated load plus any costs associated with the disposition of the contaminated
load. Future pickups are prohibited until subsequent testing reveals the milk is free of
drug residue. A farm inspection must be completed by a qualified dairy sanitarian and
the producer to determine the cause of the residue and actions required to prevent future
violations.
    (2) For the second violation in a 12-month period, the penalty is the value of all
milk on the contaminated load plus any costs associated with the disposition of the
contaminated load. Future pickups are prohibited until subsequent testing reveals the milk
is free of drug residue. A farm inspection must be completed by the regulatory agency
or its agent a qualified dairy sanitarian to determine the cause of the residue and actions
required to prevent future violations.
    (3) For the third or subsequent violation in a 12-month period, the penalty is the value
of all milk on the contaminated load plus any costs associated with the disposition of the
contaminated load. Future pickups are prohibited until subsequent testing reveals the milk
is free of drug residue. The commissioner or the commissioner's agent shall also notify the
producer by certified mail that the commissioner is initiating administrative procedures to
revoke the producer's right permit or certification to sell milk for a minimum of 30 days.
    (4) If a bulk load of milk tests negative for residues and there is a positive producer
sample on the load, no civil penalties may be assessed to the producer. The plant must
report the positive result within 24 hours and reject further milk shipments from that
producer until the producer's milk tests negative. A farm inspection must be completed
by the plant representative and the producer a qualified dairy sanitarian to determine the
cause of the residue and actions required to prevent future violations. The department
shall suspend the producer's permit and count the violation on the producer's record. The
Grade A or manufacturing grade permit must be converted to temporary status for not
more than 30 days during which time the producer must review the "Milk and Dairy Beef
Residue Prevention Protocol" with a licensed veterinarian, display the signed certificate
in the milkhouse, and send verification to the commissioner. If these conditions are met,
the Grade A or manufacturing grade permit must be reinstated. If the producer does not
comply within the temporary permit status period, the Grade A or manufacturing grade
permit must be suspended.
    (e) A milk producer that has been certified as completing the "Milk and Dairy Beef
Residue Prevention Protocol" within 12 months of the first violation of subdivision 3,
clause (7), need only review the cause of the violation with a field service representative
within three days to maintain Grade A or manufacturing grade permit and shipping status
if all other requirements of this section are met.
    (f) Civil penalties collected under this section must be deposited in the milk
inspection services account established in this chapter.

    Sec. 41. Minnesota Statutes 2006, section 32.212, is amended to read:
32.212 MILK HOUSES FOR BULK TANKS.
    Any producer using a bulk tank for cooling and storage of milk to be used for
manufacturing purposes shall have an enclosed milk room which shall conform to the
standards provided by this section and section 32.213. The floor shall be constructed of
concrete or other impervious material, maintained in good repair, and graded to provide
proper drainage. The walls and ceilings of the room shall be sealed and constructed
of smooth easily cleaned material. All windows shall be screened and doors shall be
self-closing. It shall be well ventilated and must meet the following requirements:
    (1) The bulk tank shall not be located over a drain or under a ventilator.
    (2) The hose port shall be located in an exterior wall and fitted with a tight
self-closing door.
    (3) Each milk room shall have an adequate supply of water readily accessible with
facilities for heating the water, to insure the cleaning and sanitizing of the bulk tank,
utensils and equipment and the keeping of the milk room clean.
    (4) No lights shall be placed directly over the bulk tank.
    (5) The bulk tank shall be properly located in the milk room for easy access to all
areas for cleaning and servicing.
    (6) The milkhouse shall be used only for storage of milk, milk utensils, and supplies
incidental to the production of milk.
    (7) This section and section 32.213 are is effective for all bulk tanks for milk
produced for manufacturing purposes.
    (8) No milk processor shall buy milk from any producer of milk using a bulk
tank to be used for manufacturing purposes unless such producer has complied with the
provisions of this section.
    (9) After July 1, 1965, no person shall install a bulk tank except in a milk room or
milkhouse which complies with the provisions of this section and section 32.213.
    (10) The enforcement of this section and section 32.213 shall be administered by
the Minnesota Department of Agriculture.
    (11) Any person violating any provisions of this section and section 32.213 shall be
punished by a fine of not more than $50.

    Sec. 42. Minnesota Statutes 2006, section 32.394, subdivision 4, is amended to read:
    Subd. 4. Rules. The commissioner shall by rule promulgate adopt identity,
production, and processing standards for milk, milk products, and goat milk which are
intended to bear the Grade A label.
    In the exercise of the authority to establish requirements for Grade A milk, milk
products, and goat milk, the commissioner adopts definitions, standards of identity, and
requirements for production and processing contained in the "2001 Grade A Pasteurized
Milk Ordinance" and the "1995 Grade A Condensed and Dry Milk Ordinance" of the
United States Department of Health and Human Services, in a manner provided for and
not in conflict with law.

    Sec. 43. Minnesota Statutes 2006, section 32.415, is amended to read:
32.415 MILK FOR MANUFACTURING; QUALITY STANDARDS.
    (a) The commissioner may adopt rules to provide uniform quality standards,
and producers of milk used for manufacturing purposes shall conform to the
standards contained in Subparts B, C, D, E, and F of the United States Department of
Agriculture Consumer and Marketing Service Recommended Requirements for Milk
for Manufacturing Purposes and its Production and Processing, as revised through June
17, 2002, except that the commissioner shall develop methods by which producers can
comply with the standards without violation of religious beliefs.
    (b) The commissioner shall perform or contract for the performance of the
inspections necessary to implement this section or shall certify dairy industry personnel to
perform the inspections.
    (c) The commissioner and other employees of the department shall make every
reasonable effort to assist producers in achieving the milk quality standards at minimum
cost and to use the experience and expertise of the University of Minnesota and the
Agricultural Extension Service to assist producers in achieving the milk quality standards
in the most cost-effective manner.
    (d) The commissioner shall consult with producers, processors, and others involved
in the dairy industry in order to prepare for the implementation of this section including
development of informational and educational materials, meetings, and other methods of
informing producers about the implementation of standards under this section.

    Sec. 44. [35.085] INDEMNITY FOR DESTROYED CATTLE.
    (a) The board may pay indemnity to cattle owners who choose to euthanize cattle
that test suspect for bovine tuberculosis, if funds are available from appropriations for the
purpose and if the United States Department of Agriculture refuses to pay indemnity for
the animal. The board shall pay fair market value less salvage value as appraised by a
disinterested appraiser appointed by the board. The board's decision as to the amount of
indemnity is final. If the owner refuses the board's offer, the owner need not dispose of the
animal unless and until it later shows positive to any official test for bovine tuberculosis.
    (b) The board is a buyer in the ordinary course of business under chapter 336A when
making indemnity payments under this section.

    Sec. 45. [35.244] RULES FOR CONTROL OF BOVINE TUBERCULOSIS.
    The board may adopt rules to provide for the control of tuberculosis in cattle. The
rules may include provisions for quarantine, tests, and such other measures as the board
deems appropriate. Federal regulations, as provided by Code of Federal Regulations, title
9, part 77, and the Bovine Tuberculosis Eradication Uniform Methods and Rules, are
incorporated as part of the rules in this state.

    Sec. 46. [41A.10] CELLULOSIC BIOFUEL DEVELOPMENT.
    Subdivision 1. Definitions. For the purposes of this section and section 103F.518,
the terms defined in this subdivision have the meanings given them.
    (a) "Cellulosic biofuel" means transportation fuel derived from cellulosic materials.
    (b) "Cellulosic material" means an agricultural feedstock primarily comprised
of cellulose, hemicellulose, or lignin or a combination of those ingredients grown on
agricultural lands.
    (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.
    (d) "Cellulosic biofuel facility" means a facility at which cellulosic biofuel is
produced.
    (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.
    (f) "Perennial cropping system" means an agricultural production system that
utilizes a perennial crop.
    (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.
    (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.
    (i) "Commissioner" means the commissioner of agriculture.
    Subd. 2. Cellulosic biofuel production goal. 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.

    Sec. 47. [41A.105] NEXTGEN ENERGY.
    Subdivision 1. Purpose. It is the goal of the state through the Department of
Agriculture to research and develop energy sources to displace fossil fuels with renewable
technology.
    Subd. 2. NextGen Energy Board. There is created a NextGen Energy Board
consisting of the commissioners of agriculture, commerce, natural resources, the Pollution
Control Agency, and employment and economic development; the chairs of the house and
senate committees with jurisdiction over energy finance; the chairs of the house and
senate committees with jurisdiction over agriculture finance; one member of the second
largest political party in the house, as appointed by the chairs of the house committees
with jurisdiction over agriculture finance and energy finance; one member of the second
largest political party in the senate, as appointed by the chairs of the senate committees
with jurisdiction over agriculture finance and energy finance; and the executive director
of the Agricultural Utilization Research Institute. In addition, the governor shall appoint
seven members: two representing statewide agriculture organizations; two representing
statewide environment and natural resource conservation organizations; one representing
the University of Minnesota; one representing the Minnesota Institute for Sustainable
Agriculture; and one representing the Minnesota State Colleges and Universities system.
    Subd. 3. Duties. The board shall research and report to the commissioner of
agriculture and to the legislature recommendations as to how the state can invest its
resources to most efficiently achieve energy independence, agricultural and natural
resources sustainability, and rural economic vitality. The board shall:
    (1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen,
methanol, biodiesel, and ethanol within Minnesota;
    (2) develop equity grant programs to assist locally owned facilities;
    (3) study the proper role of the state in creating financing and investing and
providing incentives;
    (4) evaluate how state and federal programs, including the Farm Bill, can best work
together and leverage resources;
    (5) work with other entities and committees to develop a clean energy program; and
    (6) report to the legislature before February 1 each year with recommendations as
to appropriations and results of past actions and projects.
    Subd. 4. Commissioner's duties. The commissioner of agriculture shall administer
this section.
    Subd. 5. Expiration. This section expires June 30, 2009.

    Sec. 48. [41A.11] TWENTY-FIVE BY TWENTY-FIVE GOAL.
    It is the goal of the state that no later than January 1, 2025, the state's agricultural,
forestry, and working land should provide from renewable resources not less than 25
percent of the total energy consumed in this state while continuing to produce safe,
abundant, and affordable food, feed, and fiber.

    Sec. 49. Minnesota Statutes 2006, section 41B.043, subdivision 2, is amended to read:
    Subd. 2. Specifications. No direct loan may exceed $35,000 or $125,000 for a loan
participation. Each direct loan and participation must be secured by a mortgage on real
property and such other security as the authority may require.

    Sec. 50. 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 submitted for a direct loan or
participation and an origination fee for each direct loan issued under the agricultural
improvement loan program. The origination fee initially shall be set at 1.5 percent and The
application fee at is initially $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. 51. 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
direct loan or 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
direct loans and 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. 52. Minnesota Statutes 2006, section 41B.047, is amended to read:
41B.047 DISASTER RECOVERY LOAN PROGRAM.
    Subdivision 1. Establishment. The authority shall establish and implement a
disaster recovery loan program to help farmers:
    (1) clean up, repair, or replace farm structures and septic and water systems, as well
as replacement of replace seed, other crop inputs, feed, and livestock, when damaged
by high winds, hail, tornado, or flood; or
    (2) purchase watering systems, irrigation systems, and other drought mitigation
systems and practices when drought is the cause of the purchase.
    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 meet the requirements of section
41B.03, subdivision 1;
    (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 $400,000 $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; 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 disaster recovery revolving fund revolving loan account
established under section 41B.06.
    (e) Disaster recovery loans under this program will be made using money in the
disaster recovery revolving fund established under subdivision 2 revolving loan account
established under section 41B.06.
    (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.

    Sec. 53. 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 first 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. In addition to the requirements in clauses (1) to (5),
preference must be given to applicants who have farmed less than ten years as evidenced
by their filing of schedule F in their federal tax returns.
    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 seven ten years.
    (c) Security for a livestock equipment loan must be a personal note executed by the
borrower and whatever other security is required by the eligible lender or the authority.
    (d) Refinancing of existing debt is not an eligible purpose.
    (e) The authority may impose a reasonable, nonrefundable application fee for
a livestock equipment loan. The authority may review the fee annually and make
adjustments as necessary. The initial application fee is $50. Application fees received by
the authority must be deposited in the revolving loan account established in section 41B.06.
    (f) Loans under this program must be made using money in the revolving loan
account established in section 41B.06.
    Subd. 4. Eligible expenditures. Money may be used for loans for the acquisition of
equipment for animal housing, confinement, animal feeding, milk production, and waste
management, including the following, if related to animal husbandry:
    (1) fences;
    (2) watering facilities;
    (3) feed storage and handling equipment;
    (4) milking parlors;
    (5) milking equipment;
    (6) scales;
    (7) milk storage and cooling facilities;
    (8) manure pumping and storage facilities; and
    (9) capital investment in pasture.;
    (10) hoop barns;
    (11) portable structures;
    (12) hay and forage equipment; and
    (13) related structural work for the installation of equipment.

    Sec. 54. 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, disaster recovery, and value-added
agricultural product loan programs, including costs incurred by the authority to establish
and administer the programs.

    Sec. 55. 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 five three years of the loan, if an approved
program is available within 45 miles from the borrower's residence. The commissioner
may waive this requirement for any of the programs administered by the authority if the
participant requests a waiver and provides justification; and
    (7) agree to file an approved soil and water conservation plan with the Soil
Conservation Service office in the county where the land is located.

    Sec. 56. Minnesota Statutes 2006, section 116.0714, is amended to read:
116.0714 NEW OPEN AIR SWINE BASINS.
    After May 18, 2002, The commissioner of the Pollution Control Agency or a county
board shall not approve any permits for the construction of new open air swine basins,
except that existing facilities may use one basin of less than 1,000,000 gallons as part
of a permitted waste treatment program for resolving pollution problems or to allow
conversion of an existing basin of less than 1,000,000 gallons to a different animal type,
provided all standards are met. This section expires June 30, 2007 2012.

    Sec. 57. Minnesota Statutes 2006, section 116O.09, subdivision 2, is amended to read:
    Subd. 2. Duties. (a) In addition to the duties and powers assigned to the institutes in
section 116O.08, the Agricultural Utilization Research Institute shall:
    (1) identify development opportunities for agricultural products;
    (2) implement a program that identifies techniques to meet those opportunities;
    (3) monitor and coordinate research among the public and private organizations and
individuals specifically addressing procedures to transfer new technology to businesses,
farmers, and individuals;
    (4) provide research grants to public and private educational institutions and other
organizations that are undertaking basic and applied research to promote the development
of emerging agricultural industries;
    (5) assist organizations and individuals with market analysis and product marketing
implementations;
    (6) to the extent possible earn and receive revenue from contracts, patents, licenses,
royalties, grants, fees-for-service, and memberships;
    (7) work with the Department of Agriculture, the United States Department of
Agriculture, the Department of Employment and Economic Development, and other
agencies to maximize marketing opportunities locally, nationally, and internationally; and
    (8) leverage available funds from federal, state, and private sources to develop new
markets and value added opportunities for Minnesota agricultural products.
    (b) The Agricultural Utilization Research Institute board of directors shall have
the sole approval authority for establishing agricultural utilization research priorities,
requests for proposals to meet those priorities, awarding of grants, hiring and direction
of personnel, and other expenditures of funds consistent with the adopted and approved
mission and goals of the Agricultural Utilization Research Institute. The actions and
expenditures of the Agricultural Utilization Research Institute are subject to audit. The
institute shall annually report by February 1 to the senate and house of representatives
standing committees with jurisdiction over agricultural policy and funding. The report
must list projects initiated, progress on projects, and financial information relating to
expenditures, income from other sources, and other information to allow the committees
to evaluate the effectiveness of the institute's activities.
    (c) The Agricultural Utilization Research Institute shall convene a Renewable
Energy Roundtable, the purpose of which shall be to further the state's leadership on
bioenergy issues.
    (i) The Renewable Energy Roundtable shall consist of one representative appointed
by the commissioner of the Minnesota Department of Agriculture, one appointed by the
commissioner of the Minnesota Department of Commerce, one appointed by the chancellor
of the Minnesota State Colleges and Universities, and one appointed by the president of
the University of Minnesota. The appointees must have expertise relevant to bioenergy.
    (ii) The board shall oversee the activities and shall provide staff to assist the
Renewable Energy Roundtable.
    (iii) The Renewable Energy Roundtable will engage professionals and experts from
private, government, academic, and nonprofit entities across the state to identify bioenergy
opportunities and collaborate with a broad group of interested parties to identify future
alternative courses of action the state can take to sustain a long-term competitive position
in renewable energy through the year 2025. The Renewable Energy Roundtable will
consult, advise, and review projects and initiatives funded by the state as directed by the
administration and the legislature.

    Sec. 58. Minnesota Statutes 2006, section 239.7911, subdivision 1, is amended to read:
    Subdivision 1. Petroleum replacement goal. The tiered petroleum replacement
goal of the state of Minnesota is that:
     (1) at least 20 percent of the liquid fuel sold in the state is derived from renewable
sources by December 31, 2015; and
    (2) at least 25 percent of the liquid fuel sold in the state is derived from renewable
sources by December 31, 2025.

    Sec. 59. Minnesota Statutes 2006, section 327.201, is amended to read:
327.201 STATE FAIR AND COUNTY FAIR CAMPING AREA AREAS.
    Subdivision 1. State Fair camping areas. Notwithstanding sections 327.14 to
327.28 or any rule adopted by the commissioner of health, the State Agricultural Society
must operate and maintain a camping area on the State Fairgrounds during the State
Fair and the Minnesota Street Rod Association's Back to the 50's event, subject to the
following conditions:
    (1) recreational camping vehicles and tents, including their attachments, must be
separated from each other and from other structures by at least seven feet;
    (2) a minimum area of 300 square feet per site must be provided and the total number
of sites must not exceed one site for every 300 square feet of usable land area; and
    (3) each site must face a driveway at least 16 feet in width and each driveway must
have unobstructed access to a public roadway.
    Subd. 2. County fair camping areas. Notwithstanding sections 327.14 to 327.28,
or any rule adopted by the commissioner of health, any area maintained by a county
agricultural society as a camping area during a county fair or any other event is subject to
the conditions specified in subdivision 1, clauses (1) to (3).

    Sec. 60. Minnesota Statutes 2006, section 343.10, is amended to read:
343.10 COUNTY AND DISTRICT SOCIETIES.
    A county society for the prevention of cruelty to animals may be formed in any
county and a district society for the prevention of cruelty to animals may be formed in
any group of two or more contiguous or noncontiguous counties or parts of counties
by not less than seven incorporators. County and district societies shall be created as
corporations under chapter 317A and as provided in the bylaws of the state federation.
No county or district society may conduct investigations outside the boundaries of the
county or counties included in the county or district society.

    Sec. 61. COMMISSIONER TO EVALUATE AND REPORT.
    By March 1, 2008, the commissioner of agriculture in consultation with the
commissioner of health and the University of Minnesota shall evaluate the potential
hazards posed by plants to retail consumers and livestock, and report the findings to
the standing committees of the senate and the house of representatives with jurisdiction
over agriculture policy.

    Sec. 62. WASTE PESTICIDE TASK FORCE, REPORT.
    The commissioner of agriculture shall convene a waste pesticide task force to review
all aspects of the waste pesticide collection issue and develop a comprehensive approach
to equitably and efficiently collect waste pesticides statewide. The task force shall include
a representative of each of the following organizations: the house of representatives,
as appointed by the chair of the house committee with jurisdiction over agriculture
finance; the senate, as appointed by the chair of the senate committee with jurisdiction
over agriculture finance; the departments of agriculture; the department of pollution
control; the Minnesota Solid Waste Administrators Association; the metropolitan Solid
Waste Management Coordinating Board; the Association of Minnesota Counties; the
Minnesota Farm Bureau; and the Minnesota Farmers Union. The task force must have
three additional members representing Minnesota pesticide registrants, distributors, and
retailers, respectively, as appointed by the commissioner. Public members of the task force
must serve without compensation or reimbursement of personal expenses. No later than
January 5, 2008, the commissioner of agriculture shall present the task force's findings
and specific recommendations to the house and senate committees with jurisdiction over
agriculture finance.

    Sec. 63. WASTE PESTICIDE COLLECTION, DISPOSAL.
    Notwithstanding section 18B.26, subdivision 2, the commissioner of agriculture
shall spend at least $600,000 in fiscal year 2009 from the pesticide regulatory account
for the purposes of the waste pesticide collection program. During fiscal year 2009, the
commissioner shall provide an opportunity for residents to dispose of waste residential
and agricultural pesticides in each county where the commissioner has not provided an
opportunity for persons to dispose of waste pesticides within county boundaries during the
previous two fiscal years.

    Sec. 64. RESIDENTIAL ANTIMICROBIAL PESTICIDE APPLICATOR
LICENSE STUDY.
    (a) The commissioners of agriculture and health must study the development
and implementation of a new category of license for commercial pesticide applicators
who apply antimicrobial pesticides for hire to mitigate or remediate mold in homes,
apartments, or other residences. The commissioners must seek and obtain consultation
with representatives of the University of Minnesota qualified in mold and other fungal
microbe pest control. They shall prepare a report which must include:
    (1) a discussion of existing federal and state laws and rules, if any, that govern
commercial residential antimicrobial pesticide mold control applicators;
    (2) a literature review on the need for, and efficacy of, antimicrobial pesticides used
in residential settings for mold control and any potential dangers posed by the residential
application of these products, particularly to young children and other sensitive persons;
    (3) a survey of the law and process, if any, for licensing commercial residential
antimicrobial pesticide mold control applicators in the rest of the United States; and
    (4) recommended procedures for licensing prospective residential antimicrobial
pesticide mold control applicators in Minnesota, highlighting provisions that test the
applicant's understanding of the efficacy of antimicrobial pesticides and methods for
mitigating any potential dangers discovered in the review required in clause (2).
    (b) No later than December 1, 2007, the commissioners shall report the results of
the study described in paragraph (a) and an implementation plan to the house and senate
committees with jurisdiction over agricultural policy and finance and environmental
health.

    Sec. 65. ANIMAL HUSBANDRY WORKING GROUP.
    (a) The commissioner of agriculture, in consultation with the chairs of the house and
senate agriculture policy and finance committees, shall appoint a balanced working group
of at least seven members who represent stakeholders in animal husbandry. Appointees
shall consist of at least one member each who currently provides the services listed in
paragraph (b), none of whom is a veterinarian. Appointees shall also include at least one
member who represents the Board of Veterinary Medicine as well as at least one member
who is a licensed and practicing veterinarian.
    (b) The animal husbandry working group shall meet to study and prepare a report
to the legislature regarding standards, training, and qualifications for persons providing
the following animal husbandry services throughout Minnesota: equine teeth floating;
animal chiropractic; and artificial insemination of animals other than cattle and swine. The
working group shall report its findings to the agriculture policy and finance committees of
the house and senate by January 15, 2008. The commissioner may provide staff support to
assist the working group in its study and preparation of the report.
    (c) Until June 1, 2008, except in cases of malpractice or complaints, the Board of
Veterinary Medicine is prohibited from taking action for practicing without a license
against persons who provide any of the services listed in paragraph (b) and were providing
that service prior to January 1, 2005.

    Sec. 66. REPEALER.
Minnesota Statutes 2006, sections 17.109; 18B.315; 18C.425, subdivision 5; 32.213;
35.08; 35.09; 35.10; 35.11; 35.12; 41A.09, subdivision 9; and 41B.043, subdivision 1a,
are repealed.
(b) Minnesota Rules, parts 1705.0840; 1705.0850; 1705.0860; 1705.0870;
1705.0880; 1705.0890; 1705.0900; 1705.0910; 1705.0920; 1705.0930; 1705.0940;
1705.0950; 1705.0960; 1705.0970; 1705.0980; 1705.0990; 1705.1000; 1705.1010;
1705.1020; 1705.1030; 1705.1040; 1705.1050; 1705.1060; 1705.1070; 1705.1080;
1705.1086; 1705.1087; and 1705.1088, are repealed.

ARTICLE 2
VETERANS AFFAIRS


Section 1. VETERANS AFFAIRS
$
12,855,000
$
12,571,000

Appropriations by Fund

2008
2009

General
12,517,000
12,233,000

Special Revenue
338,000
338,000
(a) $1,000,000 each year is added to the base
for state soldier's assistance under Minnesota
Statutes, section 197.05.
(b) $750,000 the first year and $750,000
the second year are added to the base for
grants to counties under the terms of this
section. The commissioner shall issue a
request for proposals for grants to enhance
the benefits, programs, and services provided
to veterans. The request must specify that
priority will be given to proposals that meet
the programmatic goals established by the
commissioner, including proposals that will:
(1) provide the most effective outreach to
veterans;
(2) reintegrate combat veterans into society;
(3) collaborate with other social service
agencies, educational institutions, and other
relevant community resources;
(4) reduce homelessness among veterans;
and
(5) provide measurable outcomes.
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.
(c) $750,000 each year is for tribal veterans
services offices.
(d) $750,000 each year is for a grant to the
Minnesota Assistance Council for Veterans.
This is a onetime appropriation.
(e) $200,000 each year is for marketing
veterans outreach programs. This is a
onetime appropriation.
(f) $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.
(g) $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.
(h) $100,000 each year is for information
technology.
(i) $75,000 each year is for operations at the
Minnesota State Veterans Cemetery in Little
Falls.
(j) $250,000 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.
(k) $100,000 each year is for compensation
for honor guards at the funerals of veterans
in accordance with the program established
in Minnesota Statutes, section 197.231. This
is a onetime appropriation.
(l) $52,000 the first year is for spousal
education benefits in accordance with
Minnesota Statutes, section 197.75. This
appropriation is available until June 30, 2009.
(m) $100,000 each year is for information
and outreach regarding the availability of
depleted uranium testing. The commissioner
shall collaborate with the adjutant general
to identify service members and veterans
who may have been exposed to expended
depleted uranium and to provide them with
information regarding depleted uranium
screening services provided by the federal
government. This is a onetime appropriation.
(n) $250,000 the first year is for grants to
assist World War II veterans in attending the
dedication of the Minnesota World War II
Memorial in St. Paul on June 9, 2007, and for
other expenses of the dedication event. The
commissioner may spend only that portion
of this sum for which a matching amount,
whether in cash or in kind, is donated by
nongovernmental sources for this purpose.
This appropriation is available immediately.
(o) $80,000 the first year is for suicide
prevention and psychological support for
veterans. Of this amount, $50,000 is for a
study by the commissioner and the adjutant
general of the psychological status and
needs of returning Minnesota veterans,
and $30,000 is for a telephone hotline to
refer veterans to available psychological
counseling services. The commissioner
may use this appropriation to supplement
an existing informational hotline service
within the department, or may collaborate
with any other provider of compatible,
existing hotline services for this purpose.
The referral hotline must be available to
veterans statewide at all practicable hours.
The commissioner must broadly publicize
the availability of the telephone hotline
and any local, state, and federal counseling
services for Minnesota veterans using all
practicable means available, including but
not limited to: the agency Web site; local
media announcements; announcements in
service and trade publications; and any other
practical means of communication.
The commissioner may spend up to two
percent of this appropriation for development
of special informational materials, such
as refrigerator magnets, wallet cards, and
other devices on which hotline numbers
may be kept for immediate use. The
commissioner also may accept and spend
other contributions from nongovernmental
sources for this purpose. This is a onetime
appropriation.
(p) $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.

    Sec. 2. [197.231] HONOR GUARDS.
    The commissioner of veterans affairs shall pay, within available funds and upon
request by a local unit of a congressionally chartered veterans organization or its auxiliary,
up to $50 to the local unit for each time that local unit provides an honor guard detail at
the funeral of a deceased veteran. The commissioner may give priority to local units that
do not have charitable gambling operations. If the local unit provides a student to play
"Taps," the local unit may pay some or all of the $50 to the student.

    Sec. 3. Minnesota Statutes 2006, section 197.75, is amended to read:
197.75 EDUCATIONAL ASSISTANCE, WAR ORPHANS SURVIVORS AND
VETERANS.
    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 who was a Minnesota resident within six
months of the time of the person's entry into the United States armed forces and who has
died as a result of that service, as determined by the United States Veterans Administration.
    (d) "Eligible child" means a person who:
    (1) is the natural or adopted son or daughter 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.
    Subd. 2. Benefits; eligibility. (a) The commissioner of veterans affairs shall spend a
biennial appropriation for tuition of veterans, and for tuition, fees, board, room, books, and
supplies of the children of veterans who have died as a result of their service in the armed
forces of the United States as determined by the United States Veterans Administration
or other instrumentality of the United States, in the University of Minnesota, a state
university, a community college, a technical college, or any other university of higher
learning within the state accredited by the North Central Association of Colleges and
Secondary Schools, a law college approved by the Supreme Court, a nursing school
approved by the state Board of Nursing, or in a trade, business, or vocational school in
the state approved by the state Department of Education, or in a theological seminary, for
any course which such veteran or child may elect. Not more than $750 shall be expended
for the benefit of any individual veteran, and not more than $750 in any fiscal year shall
be expended for the benefit of any child under this section. No child of any veteran
shall make application for the benefits provided in this section unless the child resided
in Minnesota for at least two years immediately prior to the date of the application. to
provide an educational assistance stipend of $750 each year for each eligible child and
each eligible spouse, and a single payment of $750 for each eligible veteran. This stipend
is not available for any person who has attained a bachelor's or equivalent degree.
    Children of veterans eligible for benefits according to this section (b) Each eligible
child and each eligible spouse shall be admitted to state institutions of university grade
any Minnesota public eligible institution free of tuition until they receive the person has
attained a bachelors bachelor's or equivalent degree.
    (c) Payments of benefits authorized under this section shall be made directly to the
institution in which the course of instruction is given participating eligible institutions or to
the individual on forms prescribed eligible individuals, as determined by the commissioner.
    Subd. 2. Limitations. The benefits in subdivision 1 are not available to a veteran
who is entitled to the same or similar benefits under a law or regulation of the United
States, except that a veteran who has been eligible for and has used up the benefits the
veteran is entitled to under the laws of the United States is entitled to the benefits provided
for by subdivision 1.
    Subd. 3. Proof of eligibility. Approval for benefits under this section shall require
submission of the following evidence: application, proof of military service, and where
applicable, proof of residency and where applicable, a statement from the United States
Veterans Administration that the veteran has exhausted entitlement to federal educational
benefits through use thereof or that the veteran died of service connected disabilities.
Upon submission of satisfactory proof of eligibility, benefits shall be provided from the
date of application and notification of approval shall be sent to the educational institution
and applicant.
    Subd. 4. Reimbursement form. Reimbursement to such institution or eligible
individual authorized under subdivision 1 shall be on forms prescribed by The
commissioner shall establish policies and procedures for determining eligibility and
payment under this section.
    Subd. 5. Definition of veteran Participation by eligible institutions. The word
"veteran" as used in this section shall have the same meaning as defined in section 197.447
except that it shall include service persons that died while on active duty. (a) Each
Minnesota public postsecondary institution must continue to participate in the educational
assistance program authorized in this section during both peacetime and times of war.
    (b) Any participating eligible institution not described in paragraph (a) may suspend
or terminate its participation in the program at the end of any academic semester or other
academic term.
    Subd. 6. Residence required. Veterans under this section shall have been a resident
of the state of Minnesota at the time of induction into the armed forces and six months
immediately preceding the induction.
EFFECTIVE DATE.This section is effective July 1, 2007, and applies to
applications for coursework taken on or after that date.

    Sec. 4. Minnesota Statutes 2006, section 198.002, subdivision 2, is amended to read:
    Subd. 2. Membership. The board consists of nine voting members appointed by the
governor with the advice and consent of the senate. The members of the board shall fairly
represent the geographic areas of the state. The members are:
    (1) a chair, who must be designated by the governor, and who must be a veteran as
that term is defined in section 197.447; and
    (2) three eight public members experienced in policy formulation with professional
experience in health care delivery; and.
    (3) At least five members experienced in policy formulation with professional
experience in health care delivery who are must be members of congressionally chartered
veterans organizations or their auxiliaries that have a statewide organizational structure
and state level officers in Minnesota.
    The commissioner of veterans affairs shall serve as an ex officio, nonvoting member
of the board. From each house of the legislature, the chair of the committee that deals
with veterans affairs or the chair's designee shall serve as an ex officio, nonvoting member
if that person is a veteran of the board.

    Sec. 5. Minnesota Statutes 2006, section 198.004, subdivision 1, is amended to read:
    Subdivision 1. Appointment. (a) The board shall appoint an executive director. The
executive director shall serve in the unclassified service at the pleasure of the board. The
executive director must be a resident of the state of Minnesota, a and citizen of the United
States, and. Preferably, the executive director shall be a veteran as that term is defined
in section 197.447, but it is not required that the person be a veteran. The executive
director shall serve as secretary of the board.
    (b) When selecting an executive director, the board shall give preference to qualified
applicants who are veterans by initially placing only the names of qualified applicants
who are veterans on the selection list for final consideration. If the list contains fewer
than three qualified applicants who are veterans, the names of qualified applicants who
are not veterans shall be added to the list. The board shall then select the most qualified
applicant from the list. At any point in the executive director selection process, if the
board concludes that no applicant is sufficiently qualified for the position, the board may
reopen the application process.

    Sec. 6. PSYCHOLOGICAL COUNSELING SERVICES REPORT.
    By November 1, 2007, the commissioner of veterans affairs and the adjutant general
of the National Guard, in consultation with relevant policy personnel and professional
staff of the Minnesota Veterans Homes Board and the United States Department of
Veterans Affairs, shall jointly report to the chair and ranking minority member of each
committee in the senate and house of representatives with jurisdiction over the policy or
finance of veterans affairs and military affairs regarding the psychological status and
needs of soldiers and veterans returning to Minnesota after having served in support of
contingency operations for Operation Enduring Freedom and Operation Iraqi Freedom.
    The report must provide the best relevant insights into and advice concerning how
to most effectively provide the psychological support services determined to be needed
by those soldiers and veterans. The report shall also provide an overview and discussion
of the types of federal, state, and local mental health resources available to soldiers and
veterans throughout the state, with particular emphasis on the role and capabilities of
the mental health facility under planning by the Minnesota Veterans Homes Board in
Kandiyohi County.

ARTICLE 3
MILITARY AFFAIRS


Section 1. MILITARY APPROPRIATIONS.
    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

Available for the Year

Ending June 30

2008
2009


Sec. 2. MILITARY AFFAIRS

Subdivision 1.Total Appropriation
$
21,161,000
$
19,362,000

Appropriations by Fund

2008
2009

General
20,823,000
19,024,000

Special Revenue
338,000
338,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.Maintenance of Training Facilities
6,837,000
6,660,000
$185,000 the first year is to pay special
assessments levied against state property.
This is a onetime appropriation.

Subd. 3.General Support
4,114,000
2,489,000

Appropriations by Fund

General
3,776,000
2,151,000

Special Revenue
338,000
338,000
$1,500,000 the first year is for the Minnesota
National Guard reintegration program. This
is a onetime appropriation and is available
until spent.
$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
190.19, for grants under that section.
$150,000 the first year is for predesign and
design of a new facility for the Starbase
Minnesota program. This appropriation is
available until spent.
$25,000 the first year is for a longitudinal
study measuring improvement in academic
achievement as a result of participation in the
Starbase program.
$30,000 each year is for payments of honor
guards as provided in Minnesota Statutes,
section 192.382.

Subd. 4.Enlistment Incentives
10,210,000
10,213,000
If appropriations for either year of the
biennium are insufficient, the appropriation
from the other year is available. The
appropriations for enlistment incentives are
available until expended.

    Sec. 3. [192.382] HONOR GUARDS.
    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.

    Sec. 4. [192.503] AMATEUR ATHLETICS.
    (a) If a Minnesota resident who is a member of the Minnesota National Guard or
any other reserve unit of the United States Armed Forces is a qualified member of a team
governed by an amateur athletic association in this state upon being ordered into active
military service, as defined in section 190.05, subdivision 5b or 5c, then that person is
a qualified member of that team and association during periodic leave and upon release
or discharge from that active military service, irrespective of the length of time that the
person has served in that active military service, and the member must be given the same
eligibility status and consideration for participation in both regular and post-season play
by the team and association as if the member had been present and participating in play
during the entire period of the person's military service.
    (b) This section does not apply to public or private high schools or postsecondary
educational institutions.
EFFECTIVE DATE.This section is effective the day following enactment and
applies to any member of the National Guard or other military reserves who has been
ordered into active military service at any time.

    Sec. 5. [192.515] NATIONAL GUARD NONAPPROPRIATED FUND
INSTRUMENTALITY.
    Subdivision 1. Establishment. The adjutant general may establish a Minnesota
National Guard Nonappropriated Fund Instrumentality to create, operate, and maintain
morale, welfare, and recreation facilities and activities at Camp Ripley and other property
owned, leased, or otherwise controlled by the Minnesota National Guard.
    Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
    (b) "Instrumentality" means the Minnesota National Guard Nonappropriated Fund
Instrumentality.
    (c) "Morale, welfare, and recreation facility or activity" refers to a facility or activity
intended to provide recreational opportunities, promote unit and individual morale, and
generally improve the welfare of Minnesota National Guard personnel at Camp Ripley or
other properties owned, leased, or otherwise controlled by the Minnesota National Guard.
It does not include facilities or services provided by the Army and Air Force Exchange
Service. It also does not include facilities or services provided by other instrumentalities
through the use of appropriated funds.
    Subd. 3. Use of National Guard lands. The adjutant general may authorize
Minnesota National Guard lands and facilities to be used in support of morale, welfare,
and recreation activities under this section. That use must not interfere with military
operations or training.
    Subd. 4. Funds. (a) Except as otherwise specifically authorized in this section,
no general fund money or other state funds may be deposited in any of the funds and
accounts established under this section.
    (b) The instrumentality is authorized to accept donations or gifts from public or
private sources for purposes authorized under this section, including, but not limited
to, federal funds made available to the National Guard for related activities and money
received from recycling activities to the extent authorized by federal regulation.
    (c) Money received from operation of activities under this section, including, but
not limited to, user fees and rental charges must be deposited and managed consistent
with this subdivision.
    (d) The adjutant general may transfer funds from any existing morale, welfare, or
recreation fund outside the state treasury to the instrumentality.
    (e) Money received by the instrumentality must be deposited in the Minnesota
National Guard morale, welfare, and recreation fund. The Minnesota National Guard
morale, welfare, and recreation fund is established outside the state treasury. The adjutant
general may spend money in the fund for morale, welfare, or recreation facilities or
activities as authorized by this section.
    (f) Accounts or funds created under this section must be audited annually by officers
of the military forces detailed by the adjutant general as military auditors.
    Subd. 5. Rules. The adjutant general must adopt rules for the establishment,
management, and operation of the instrumentality consistent with this section.

    Sec. 6. BOND SALE AUTHORIZATION REDUCED.
    The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1,
is reduced by $150,000.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. REPEALER.
Laws 2006, chapter 258, section 14, subdivision 6, is repealed.
Presented to the governor May 1, 2007
Signed by the governor May 4, 2007, 11:35 a.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569