SF 2737

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 04/08/2010 11:36am

A bill for an act
relating to state government; changing certain pesticide control provisions;
authorizing waiver of a fee; providing for control of bovine tuberculosis;
eliminating the native grasses and wildflower seed production and incentive
program; authorizing ownership of agricultural land by certain nonprofit
corporations; requiring tree care and tree trimming company registration;
regulating certain sale and distribution of firewood; authorizing individuals and
entities to take certain easements in agricultural land; allowing a temporary
lien for livestock production inputs for 45 days following a mediation request
requiring reports; clarifying the role of the commissioner and Department of
Veterans Affairs in providing certain resources for the county veterans service
offices; modifying a residency requirement for purposes of eligibility for higher
educational benefits for the surviving spouse and children of a deceased veteran
who dies as a result of military service; repealing authorization for a license plate;
repealing a requirement that the Department of Veterans Affairs report on the
status of a construction project priority listing; appropriating money; amending
Minnesota Statutes 2008, sections 3.737, subdivision 4; 17.03, by adding a
subdivision; 18B.31, subdivision 5; 18B.36, subdivision 1; 18B.37, subdivision
4; 18G.07; 28A.082, subdivision 1; 35.244, subdivisions 1, 2; 197.60, subdivision
1; 197.601; 197.605; 197.606; 197.609, subdivisions 1, 2; 197.75, subdivision 1;
239.092; 239.093; 500.221, subdivisions 2, 4; 500.24, subdivision 2; 514.965,
subdivision 2; 514.966, subdivision 6, by adding a subdivision; Minnesota
Statutes 2009 Supplement, sections 3.737, subdivision 1; 18B.316, subdivision
10; Laws 2008, chapter 296, article 1, section 25; proposing coding for new
law in Minnesota Statutes, chapters 17; 38; repealing Minnesota Statutes 2008,
sections 17.231; 168.1251; 343.26; Laws 2009, chapter 94, article 3, section 23.

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

ARTICLE 1

AGRICULTURE

Section 1.

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

Subdivision 1.

Compensation required.

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

(b) deleted text begin Either the agent or the deleted text end new text begin A university extension agent, a new text end conservation officer new text begin ,
an official from the Animal and Plant Health Inspection Service of the United States
Department of Agriculture, or a peace officer from the county sheriff's office new text end must make
a personal inspection of the site new text begin and submit a report to the commissioner, including
photographs, detailing the results of the investigation new text end . deleted text begin The agent or the conservation
officer deleted text end new text begin The investigator new text end must take into account factors in addition to a visual identification
of a carcass when making a recommendation to the commissioner. The commissioner,
upon recommendation of the deleted text begin agent or conservation officer deleted text end new text begin investigator new text end , shall determine
whether the livestock was destroyed by a gray wolf deleted text begin 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 deleted text end . The owner shall file a claim on forms provided by the
commissioner and available at the university extension agent's office.

Sec. 2.

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

Subd. 4.

Payment; denial of compensation.

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

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

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

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

Sec. 3.

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

new text begin Subd. 11a. new text end

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

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

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

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

Sec. 4.

new text begin [17.459] HORSES.
new text end

new text begin Subdivision 1. new text end

new text begin Classification as livestock. new text end

new text begin Horses and other equines raised for the
purposes of riding, driving, farm or ranch work, competition, racing, recreation, sale, or as
breeding stock are livestock. Horses and their products are livestock and farm products for
purposes of financial transactions and collateral.
new text end

new text begin Subd. 2. new text end

new text begin Agricultural pursuit. new text end

new text begin Raising horses and other equines is agricultural
production and an agricultural pursuit.
new text end

new text begin Subd. 3. new text end

new text begin Nonapplicability for property tax laws. new text end

new text begin This section does not apply to
the treatment of land used for raising horses under chapter 273.
new text end

Sec. 5.

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

Subd. 5.

Application fee.

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

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

Sec. 6.

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

Subd. 10.

Application fee.

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

(b) If an application for renewal of an agricultural pesticide dealer license is not filed
before deleted text begin January of the year for which deleted text end the license deleted text begin is to be issued deleted text end new text begin expires new text end , an additional fee of
50 percent of the application fee must be paid by the applicant before the commissioner
may issue the license.

Sec. 7.

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

Subdivision 1.

Requirement.

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

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

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

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

(b) A deleted text begin private applicator deleted text end new text begin person new text end may not purchase a restricted use pesticide without
presenting a new text begin license card, new text end certified private applicator card new text begin , new text end or the card number.

Sec. 8.

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

Subd. 4.

Storage, handling, new text begin incident response, new text end and disposal plan.

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

Sec. 9.

Minnesota Statutes 2008, section 18G.07, is amended to read:

18G.07 TREE CARE AND TREE TRIMMING COMPANY deleted text begin REGISTRY deleted text end new text begin
REGISTRATION new text end .

Subdivision 1.

Creation of registry.

new text begin (a) new text end The commissioner shall maintain a
list of all persons and companies that provide tree care or tree trimming services in
Minnesota. All tree care providers, tree trimmers, and persons who remove trees, limbs,
branches, brush, or shrubs for hire new text begin and advertise their services new text end must deleted text begin provide the following
information to deleted text end new text begin be registered by new text end the commissioner deleted text begin : deleted text end new text begin .
new text end

new text begin (b) Persons or companies who are required to be registered under paragraph (a),
must register annually by providing the following to the commissioner:
new text end

(1) accurate and up-to-date business name, address, and telephone number;

(2) a complete list of all Minnesota counties in which they work; and

(3) deleted text begin a complete list of persons in the business who are certified by the International
Society of Arborists deleted text end new text begin a nonrefundable fee of $25 for initial application or renewing the
registration new text end .

new text begin (c) All persons and companies required to be registered under paragraph (a) must
register before conducting the activities specified in paragraph (a). Annual registration
expires December 31, must be renewed annually, and the renewal fee remitted by January
7 of the year for which it is issued. In addition, a penalty of ten percent of the renewal fee
due must be charged for each month, or portion of a month, that the fee is delinquent up to
a maximum of 30 percent for any application for renewal postmarked after December 31.
new text end

Subd. 2.

Information dissemination.

The commissioner shall provide registered
tree care companies with information and data regarding any existing or potential
regulated forest pest infestations within the state.

new text begin Subd. 3. new text end

new text begin Violation. new text end

new text begin It is unlawful for a person who is required to be registered
under subdivision 1 to provide tree care or tree trimming services in Minnesota without
being registered with the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2011.
new text end

Sec. 10.

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

Subdivision 1.

Fees; application.

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

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

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

Sec. 11.

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

Subdivision 1.

Designation of zones.

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

Sec. 12.

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

Subd. 2.

new text begin Requirements within a tuberculosis new text end control deleted text begin within modified accredited deleted text end
zone.

In a deleted text begin modified accredited deleted text end new text begin tuberculosis control new text end zone, the board deleted text begin has the authority to deleted text end new text begin
may new text end :

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

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

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

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

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

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

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

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

Sec. 13.

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

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

Sec. 14.

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

239.092 SALE FROM BULK.

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

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

(2) the date delivered;

(3) the quantity delivered;

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

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

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

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

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

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

Sec. 15.

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

239.093 INFORMATION REQUIRED WITH PACKAGE.

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

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

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

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

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

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

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

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

Sec. 16.

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

Subd. 2.

Aliens and non-American corporations.

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

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

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

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

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

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

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

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

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

(i) disposes of all agricultural land held; or

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

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

Sec. 17.

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

Subd. 4.

Reports.

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

new text begin (b) An individual or entity that qualifies for an exemption under subdivision 2, clause
(2) or (9), and owns an interest in agricultural land shall file a report with the commissioner
of agriculture within 30 days of acquisition and annually thereafter by January 31,
containing a description of all interests in agricultural land held within this state, the
purchase price of the interest and market value of the land, the use to which it is put, the
date of acquisition, and any other reasonable information required by the commissioner.
new text end

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

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

Sec. 18.

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

Subd. 2.

Definitions.

The definitions in this subdivision apply to this section.

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

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

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

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

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

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

(d) "Family farm trust" means:

(1) a trust in which:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(2) it has no more than five partners;

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

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

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

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

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

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

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

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

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

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

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

(1) it has no more than five members;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(z) "Nonprofit corporation" means a nonprofit corporation organized under state
nonprofit corporation or trust law or qualified for tax-exempt status under federal tax law
that new text begin : (1) new text end uses the land for a specific nonfarming purpose deleted text begin or deleted text end new text begin ; (2) new text end leases the agricultural
land to a family farm unit, a family farm corporation, an authorized farm corporation, an
authorized livestock farm corporation, a family farm limited liability company, a family
farm trust, an authorized farm limited liability company, a family farm partnership, or an
authorized farm partnership new text begin ; or (3) actively farms less than 160 acres that were acquired
by the nonprofit corporation prior to January 1, 2010, or actively farms less than 40 acres
that were acquired by the nonprofit corporation after January 1, 2010, and the nonprofit
corporation uses all profits from the agricultural land for educational purposes new text end .

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

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

Sec. 19.

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

Subd. 2.

Agricultural lien.

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

Sec. 20.

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

new text begin Subd. 3a. new text end

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

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

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

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

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

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

Sec. 21.

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

Subd. 6.

Perfection.

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

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

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

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

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

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

Sec. 22.

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

EFFECTIVE DATE.

This section is effective June 1, deleted text begin 2010 deleted text end new text begin 2011 new text end .

Sec. 23. new text begin FERTILIZER RESEARCH GRANTS; EXTENSION OF
APPROPRIATION AVAILABILITY.
new text end

new text begin Notwithstanding Minnesota Statutes, section 16A.28:
new text end

new text begin (1) the appropriation encumbered on or before June 30, 2009, for fertilizer research
grants in Laws 2007, chapter 45, article 1, section 3, subdivision 5, is available until
June 30, 2011;
new text end

new text begin (2) the fiscal year 2010 appropriation encumbered on or before June 30, 2011, for
fertilizer research grants in Laws 2009, chapter 94, article 1, section 3, subdivision 5, is
available until June 30, 2013; and
new text end

new text begin (3) the fiscal year 2011 appropriation encumbered on or before June 30, 2012, for
fertilizer research grants in Laws 2009, chapter 94, article 1, section 3, subdivision 5,
is available until June 30, 2014.
new text end

Sec. 24. new text begin DAIRY RESEARCH AND EDUCATION FACILITY.
new text end

new text begin The commissioner shall work with milk producers and other industry stakeholders
along with representatives of the University of Minnesota and Minnesota State Colleges
and Universities whose work relates to the dairy industry, to consider the elements of a
dairy research and education facility that would represent a partnership between higher
education institutions and the dairy industry. The commissioner shall provide a report on
facility and financing options to the house of representatives and senate agriculture budget
chairs and ranking minority members by February 1, 2011.
new text end

Sec. 25. new text begin TERMINAL CAPACITY STUDY; APPROPRIATION.
new text end

new text begin $50,000 in fiscal year 2011 is appropriated from the fertilizer inspection account
in the agricultural fund to the commissioner of agriculture to determine, with assistance
from the Office of Energy Security, the total propane and anhydrous ammonia terminal
capacity located in the state and within 100 miles of the state's borders. The commissioner
shall also use projected grain yields and other relevant factors to estimate total agricultural
demand for propane and anhydrous ammonia in this state in the year 2020 and shall
develop a detailed plan for fully and economically satisfying this anticipated demand. No
later than February 1, 2011, the commissioner shall present the report to the legislative
committees with jurisdiction over agricultural finance.
new text end

Sec. 26. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 17.231; and 343.26, new text end new text begin are repealed.
new text end

ARTICLE 2

VETERANS

Section 1.

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

Subdivision 1.

Appointment; administrative support.

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

Sec. 2.

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

197.601 QUALIFICATIONS OF VETERANS SERVICE OFFICERS.

No person shall be appointed a veterans service officer new text begin or an assistant county
veterans service officer or the equivalent new text end under sections 197.60 to 197.606 deleted text begin without the
following qualifications deleted text end new text begin unless the person is new text end :

(1) deleted text begin residence in deleted text end new text begin a resident of new text end the state of Minnesota;

(2) deleted text begin citizenship in deleted text end new text begin a citizen of new text end the United States; new text begin and
new text end

(3) new text begin a new text end veteran new text begin , new text end as defined in section 197.447 deleted text begin ; deleted text end new text begin . new text end

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

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

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

Sec. 3.

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

197.605 deleted text begin SUPERVISION deleted text end new text begin DEPARTMENT AS A RESOURCE TO COUNTIES new text end .

Subdivision 1.

deleted text begin Methods of operation deleted text end new text begin Resources available new text end .

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

Subd. 2.

Use of agencies to present claims.

Every veterans service officer new text begin and
assistant veterans service officer or the equivalent new text end appointed under sections 197.60 to
197.606 shall use the new text begin Minnesota new text end Department of Veterans Affairs or any organization
recognized by the United States new text begin Department of new text end Veterans deleted text begin Administration deleted text end new text begin Affairs new text end , as may
be designated by the veteran by power of attorney, in the presentation of claims to the
United States new text begin Department of new text end Veterans deleted text begin Administration deleted text end new text begin Affairs new text end for the benefits referred to
in section 197.603.

deleted text begin Subd. 3. deleted text end

deleted text begin Rules. deleted text end

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

Subd. 4.

Certification.

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

Sec. 4.

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

197.606 CLASSED AS COUNTY EMPLOYEES.

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

Sec. 5.

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

Subdivision 1.

Establishment and administration.

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

Sec. 6.

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

Subd. 2.

Eligibility.

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

Sec. 7.

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

Subdivision 1.

Definitions.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 8. new text begin NONCOMPLIANCE.
new text end

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

Sec. 9. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2008, section 168.1251, new text end new text begin is repealed.
new text end

new text begin (b) Laws 2009, chapter 94, article 3, section 23, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (b) is effective the day following final enactment.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 and 8 are effective July 1, 2010.
new text end