1.1    .................... moves to amend H. F. No. 3902 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1
1.4AGRICULTURE POLICY

1.5    Section 1. [17.118] LIVESTOCK INVESTMENT GRANT PROGRAM.
1.6    Subdivision 1. Establishment. The commissioner may award a livestock investment
1.7grant to a person who raises livestock in this state equal to ten percent of the first $500,000
1.8of qualifying expenditures, provided the person makes qualifying expenditures of at least
1.9$4,000. The commissioner may award multiple livestock investment grants to a person
1.10over the life of the program as long as the cumulative amount does not exceed $50,000.
1.11    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
1.12subdivision have the meanings given them.
1.13    (b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
1.14cervidae, ratitae, bison, sheep, and llamas.
1.15    (c) "Qualifying expenditures" means the amount spent for:
1.16    (1) the acquisition, construction, or improvement of buildings or facilities for the
1.17production of livestock or livestock products;
1.18    (2) the development of pasture for use by livestock; or
1.19    (3) the acquisition of equipment for livestock housing, confinement, feeding, and
1.20waste management including, but not limited to, the following:
1.21    (i) freestall barns;
1.22    (ii) watering facilities;
1.23    (iii) feed storage and handling equipment;
1.24    (iv) milking parlors;
1.25    (v) robotic equipment;
1.26    (vi) scales;
2.1    (vii) milk storage and cooling facilities;
2.2    (viii) bulk tanks;
2.3    (ix) computer hardware and software and associated equipment used to monitor
2.4the productivity and feeding of livestock;
2.5    (x) manure pumping and storage facilities;
2.6    (xi) swine farrowing facilities;
2.7    (xii) swine and cattle finishing barns;
2.8    (xiii) calving facilities;
2.9    (xiv) digesters;
2.10    (xv) equipment used to produce energy;
2.11    (xvi) on-farm processing facilities and equipment; and
2.12    (xvii) fences.
2.13    Qualifying expenditures only include amounts that are allowed to be capitalized and
2.14deducted under either section 167 or 179 of the Internal Revenue Code in computing
2.15federal taxable income. Qualifying expenditures do not include an amount paid to
2.16refinance existing debt.
2.17    (d) "Qualifying period" means, for a grant awarded during a fiscal year, that full
2.18calendar year of which the first six months precede the first day of the current fiscal year.
2.19For example, an eligible person who makes qualifying expenditures during calendar
2.20year 2008 is eligible to receive a livestock investment grant between July 1, 2008, and
2.21June 30, 2009.
2.22    Subd. 3. Eligibility. (a) To be eligible for a livestock investment grant, a person
2.23must:
2.24    (1) be a resident of Minnesota or an entity authorized to farm in this state under
2.25section 500.24, subdivision 3;
2.26    (2) be the principal operator of the farm;
2.27    (3) hold an appropriate feedlot registration; and
2.28    (4) apply to the commissioner on forms prescribed by the commissioner including a
2.29statement of the qualifying expenditures made during the qualifying period along with any
2.30proof or other documentation the commissioner may require.
2.31    (b) The $50,000 maximum grant applies at the entity level for partnerships, S
2.32corporations, C corporations, trusts, and estates as well as at the individual level. In the
2.33case of married individuals, the grant is limited to $50,000 for a married couple.
2.34    Subd. 4. Process. The commissioner shall review completed applications and
2.35award grants to eligible applicants in the order in which applications were received by
2.36the commissioner. The commissioner shall certify eligible applications up to the amount
3.1appropriated for a fiscal year. The commissioner must place any additional eligible
3.2applications on a waiting list and, notwithstanding subdivision 2, paragraph (c), give
3.3them priority during the next fiscal year. The commissioner shall notify in writing any
3.4applicant who applies for a grant and is ineligible under the provisions of this section
3.5as well as any applicant whose application is received or reviewed after the fiscal year
3.6funding limit has been reached.
3.7    Subd. 5. Livestock investment grant account. A livestock investment grant
3.8account is hereby established in the agricultural fund to receive general fund appropriations
3.9and money transferred from other accounts. Any interest earned on money in the account
3.10accrues to the account. Money in the account is appropriated to the commissioner for
3.11the purposes of the livestock investment grant program, including costs incurred to
3.12administer the program.

3.13    Sec. 2. Minnesota Statutes 2006, section 18B.065, subdivision 2, is amended to read:
3.14    Subd. 2. Implementation. (a) The commissioner may obtain a United States
3.15Environmental Protection Agency hazardous waste identification number to manage the
3.16waste pesticides collected.
3.17    (b) The commissioner may not limit the type and quantity of waste pesticides
3.18accepted for collection and may not assess pesticide end users for portions of the costs
3.19incurred.

3.20    Sec. 3. Minnesota Statutes 2006, section 18B.065, subdivision 7, is amended to read:
3.21    Subd. 7. Cooperative agreements. The commissioner may enter into cooperative
3.22agreements with state agencies and local units of government for administration of the
3.23waste pesticide collection program. The commissioner shall ensure that the program is
3.24carried out in all counties. If the commissioner cannot contract with another party to
3.25administer the program in a county, the commissioner shall perform collections according
3.26to the provisions of this section.

3.27    Sec. 4. Minnesota Statutes 2006, section 18B.07, subdivision 2, is amended to read:
3.28    Subd. 2. Prohibited pesticide use. (a) A person may not use, store, handle,
3.29distribute, or dispose of a pesticide, rinsate, pesticide container, or pesticide application
3.30equipment in a manner:
3.31    (1) that is inconsistent with a label or labeling as defined by FIFRA;
3.32    (2) that endangers humans, damages agricultural products, food, livestock, fish,
3.33or wildlife; or
3.34    (3) that will cause unreasonable adverse effects on the environment.
4.1    (b) A person may not direct a pesticide onto property beyond the boundaries of the
4.2target site. A person may not apply a pesticide resulting in damage to adjacent property.
4.3    (c) A person may not directly apply a pesticide on a human by overspray or target
4.4site spray, except when:
4.5    (1) the pesticide is intended for use on a human;
4.6    (2) the pesticide application is for mosquito control operations;
4.7    (3) the pesticide application is for control of gypsy moth, forest tent caterpillar,
4.8or other pest species, as determined by the commissioner, and the pesticide used is a
4.9biological agent; or
4.10    (4) the pesticide application is for a public health risk, as determined by the
4.11commissioner of health, and the commissioner of health, in consultation with the
4.12commissioner of agriculture, determines that the application is warranted based on
4.13the commissioner's balancing of the public health risk with the risk that the pesticide
4.14application poses to the health of the general population, with special attention to the
4.15health of children.
4.16    (d) For pesticide applications under paragraph (c), clause (2), the following
4.17conditions apply:
4.18    (1) no practicable and effective alternative method of control exists;
4.19    (2) the pesticide is among the least toxic available for control of the target pest; and
4.20    (3) notification to residents in the area to be treated is provided at least 24 hours
4.21before application through direct notification, posting daily on the treating organization's
4.22Web site, if any, and by sending a broadcast e-mail to those persons who request
4.23notification of such, of those areas to be treated by adult mosquito control techniques
4.24during the next calendar day. For control operations related to human disease, notice under
4.25this paragraph may be given less than 24 hours in advance.
4.26    (e) For pesticide applications under paragraph (c), clauses (3) and (4), the following
4.27conditions apply:
4.28    (1) no practicable and effective alternative method of control exists;
4.29    (2) the pesticide is among the least toxic available for control of the target pest; and
4.30    (3) notification of residents in the area to be treated is provided by direct notification
4.31and through publication in a newspaper of general circulation within the affected area.
4.32    (f) For purposes of this subdivision, "direct notification" may include mailings,
4.33public meetings, posted placards, neighborhood newsletters, or other means of contact
4.34designed to reach as many residents as possible. Public meetings held to meet this
4.35requirement for adult mosquito control, under paragraph (d), must be held within each
5.1city or town where the pesticide treatments are to be made, at a time and location that is
5.2convenient for residents of the area where the treatments will occur.
5.3    (g) A person may not apply a pesticide in a manner so as to expose a worker in an
5.4immediately adjacent, open field.
5.5    (h) Except for public health purposes, it is a violation of this chapter to apply for hire
5.6a pesticide to the incorrect site or to a site where an application has not been requested,
5.7ordered, or contracted for by the property owner or lawful manager or property manager
5.8of the site, notwithstanding that the application is done in a manner consistent with the
5.9label or labeling.

5.10    Sec. 5. Minnesota Statutes 2006, section 18C.60, is amended by adding a subdivision
5.11to read:
5.12    Subd. 5. Retail signage. (a) In the seven-county metropolitan area, a retailer of
5.13lawn fertilizer containing phosphorus must post a conspicuous sign stating the legal
5.14limitations on the fertilizer's use. "Conspicuous" means lettering in black Arial typeface
5.15at least three-eighths of an inch in height against a bright contrasting background. The
5.16sign must state:
5.17    "For the protection of water quality, Minnesota law prohibits application of lawn
5.18fertilizer containing phosphorus except when:
5.19    (1) establishing a new lawn with seed or sod;
5.20    (2) a soil test or plant tissue test shows a need for phosphorus;
5.21    (3) applied on a golf course by a trained person; or
5.22    (4) applied on farms growing sod for sale."
5.23    (b) A retailer offering lawn fertilizer containing phosphorus must post a sign with
5.24the fertilizer display.
5.25    (c) A retailer may substitute the sign in paragraph (a) with an alternative sign that
5.26meets requirements of paragraph (a).

5.27    Sec. 6. Minnesota Statutes 2006, section 18D.305, subdivision 2, is amended to read:
5.28    Subd. 2. Revocation and suspension. (a) The commissioner may, after written
5.29notice and hearing, revoke, suspend, or refuse to grant or renew a registration, permit,
5.30license, or certification if a person violates a provision of this chapter or has a history
5.31within the last three years of violations of this chapter.
5.32    (b) The commissioner may refuse to accept an application for a registration, permit,
5.33license, or certification, and may revoke or suspend a previously issued registration,
5.34permit, license, or certification of a person from another state if that person has:
6.1    (1) had a registration, permit, license, or certification denied, revoked, or suspended
6.2by another state for an offense reasonably related to the requirements, qualifications, or
6.3duties of a registration, permit, license, or certification issued under chapter 18B or 18C; or
6.4    (2) been convicted of a violation, had a history of violations, or been subject to a
6.5final order imposing civil penalties authorized under the Federal Insecticide, Fungicide
6.6and Rodenticide Act (FIFRA), as amended.

6.7    Sec. 7. Minnesota Statutes 2006, section 18E.04, subdivision 2, is amended to read:
6.8    Subd. 2. Payment of corrective action costs. (a) On request by an eligible person,
6.9the board may pay the eligible person for the reasonable and necessary cash disbursements
6.10for corrective action costs incurred by the eligible person as provided under subdivision 4
6.11if the board determines:
6.12    (1) the eligible person pays the first $1,000 of the corrective action costs;
6.13    (2) the eligible person provides the board with a sworn affidavit and other convincing
6.14evidence that the eligible person is unable to pay additional corrective action costs;
6.15    (3) the eligible person continues to assume responsibility for carrying out the
6.16requirements of corrective action orders issued to the eligible person or that are in effect;
6.17    (4) the incident was reported as required in chapters 18B, 18C, and 18D; and
6.18    (5) the eligible person submits an application for payment or reimbursement to the
6.19department, along with associated invoices, within three years of (i) incurring eligible
6.20corrective action costs performance of the eligible work, or (ii) approval of a the related
6.21corrective action design or plan for that work, whichever is later.
6.22    (b) The eligible person must submit an application for payment or reimbursement of
6.23eligible cost incurred prior to July 1, 2001, no later than June 1, 2004.
6.24    (c) An eligible person is not eligible for payment or reimbursement and must refund
6.25amounts paid or reimbursed by the board if false statements or misrepresentations are
6.26made in the affidavit or other evidence submitted to the commissioner to show an inability
6.27to pay corrective action costs.
6.28    (d) The board may pay the eligible person and one or more designees by multiparty
6.29check.

6.30    Sec. 8. Minnesota Statutes 2006, section 28A.03, is amended by adding a subdivision
6.31to read:
6.32    Subd. 10. Vending machine. "Vending machine" means a self-service device that,
6.33upon insertion of a coin, paper currency, token, card, or key, dispenses unit servings of
6.34food in bulk or in packages without the necessity of replenishing the device between
6.35each vending operation.

7.1    Sec. 9. Minnesota Statutes 2006, section 28A.08, is amended to read:
7.228A.08 LICENSE FEES; PENALTIES.
7.3    Subdivision 1. General. License fees, penalties for late renewal of licenses, and
7.4penalties for not obtaining a license before conducting business in food handling that are
7.5set in this section apply to the sections named except as provided under section 28A.09.
7.6Except as specified herein, bonds and assessments based on number of units operated or
7.7volume handled or processed which are provided for in said laws shall not be affected,
7.8nor shall any penalties for late payment of said assessments, nor shall inspection fees, be
7.9affected by this chapter. The penalties may be waived by the commissioner. Fees for all
7.10new licenses must be based on the anticipated future gross annual food sales. If a firm is
7.11found to be operating for multiple years without paying license fees, the state may collect
7.12the appropriate fees and penalties for each year of operation.
7.13    Subd. 3. Fees effective July 1, 2003.
7.14
Penalties
7.15
7.16
7.17
Type of food handler
License Fee
Effective
July 1, 2003
Late Renewal
No License
7.18
1.
Retail food handler
7.19
7.20
7.21
7.22
7.23
7.24
7.25
7.26
7.27
(a) Having gross sales
of only prepackaged
nonperishable food
of less than $15,000
for the immediately
previous license or
fiscal year and filing
a statement with the
commissioner
$ 50
$ 17
$ 33
7.28
7.29
7.30
7.31
7.32
7.33
7.34
7.35
7.36
(b) Having under
$15,000 gross sales or
service including food
preparation or having
$15,000 to $50,000
gross sales or service
for the immediately
previous license or
fiscal year
$ 77
$ 25
$ 51
7.37
7.38
7.39
7.40
7.41
(c) Having $50,001
to $250,000 gross
sales or service for the
immediately previous
license or fiscal year
$155
$ 51
$102
7.42
7.43
7.44
7.45
7.46
(d) Having $250,001
to $1,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$276
$ 91
$ 182
8.1
8.2
8.3
8.4
8.5
(e) Having $1,000,001
to $5,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$799
$264
$527
8.6
8.7
8.8
8.9
8.10
(f) Having $5,000,001
to $10,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$1,162
$383
$767
8.11
8.12
8.13
8.14
8.15
8.16
(g) Having
$10,000,001 to
$15,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$1,376
$454
$908
8.17
8.18
8.19
8.20
8.21
8.22
(h) Having
$15,000,001 to
$20,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$1,607
$530
$1,061
8.23
8.24
8.25
8.26
8.27
8.28
(i) Having
$20,000,001 to
$25,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$1,847
$610
$1,219
8.29
8.30
8.31
8.32
8.33
(j) Having over
$25,000,001 gross
sales or service for the
immediately previous
license or fiscal year
$2,001
$660
$1,321
8.34
8.35
2.
Wholesale food
handler
8.36
8.37
8.38
8.39
8.40
(a) Having gross sales
or service of less
than $25,000 for the
immediately previous
license or fiscal year
$ 57
$ 19
$ 38
8.41
8.42
8.43
8.44
8.45
(b) Having $25,001
to $250,000 gross
sales or service for the
immediately previous
license or fiscal year
$284
$ 94
$187
8.46
8.47
8.48
8.49
8.50
8.51
8.52
8.53
(c) Having $250,001
to $1,000,000 gross
sales or service from a
mobile unit without a
separate food facility
for the immediately
previous license or
fiscal year
$444
$147
$293
9.1
9.2
9.3
9.4
9.5
9.6
9.7
(d) Having $250,001
to $1,000,000 gross
sales or service
not covered under
paragraph (c) for the
immediately previous
license or fiscal year
$590
$195
$389
9.8
9.9
9.10
9.11
9.12
(e) Having $1,000,001
to $5,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$769
$254
$508
9.13
9.14
9.15
9.16
9.17
(f) Having $5,000,001
to $10,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$920
$304
$607
9.18
9.19
9.20
9.21
9.22
9.23
(g) Having
$10,000,001 to
$15,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$990
$327
$653
9.24
9.25
9.26
9.27
9.28
9.29
(h) Having
$15,000,001 to
$20,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$1,156
$381
$763
9.30
9.31
9.32
9.33
9.34
9.35
(i) Having
$20,000,001 to
$25,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$1,329
$439
$877
9.36
9.37
9.38
9.39
9.40
9.41
(j) Having over
$25,000,001 or more
gross sales or service
for the immediately
previous license or
fiscal year
$1,502
$496
$991
9.42
3.
Food broker
$150
$ 50
$ 99
9.43
9.44
9.45
4.
Wholesale food
processor or
manufacturer
9.46
9.47
9.48
9.49
9.50
(a) Having gross sales
or service of less
than $125,000 for the
immediately previous
license or fiscal year
$169
$ 56
$112
10.1
10.2
10.3
10.4
10.5
(b) Having $125,001
to $250,000 gross
sales or service for the
immediately previous
license or fiscal year
$392
$129
$259
10.6
10.7
10.8
10.9
10.10
(c) Having $250,001
to $1,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$590
$195
$389
10.11
10.12
10.13
10.14
10.15
(d) Having $1,000,001
to $5,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$769
$254
$508
10.16
10.17
10.18
10.19
10.20
(e) Having $5,000,001
to $10,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$920
$304
$607
10.21
10.22
10.23
10.24
10.25
10.26
(f) Having
$10,000,001 to
$15,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$1,377
$454
$909
10.27
10.28
10.29
10.30
10.31
10.32
(g) Having
$15,000,001 to
$20,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$1,608
$531
$1,061
10.33
10.34
10.35
10.36
10.37
10.38
(h) Having
$20,000,001 to
$25,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$1,849
$610
$1,220
10.39
10.40
10.41
10.42
10.43
10.44
(i) Having
$25,000,001 to
$50,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$2,090
$690
$1,379
10.45
10.46
10.47
10.48
10.49
10.50
(j) Having
$50,000,001 to
$100,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$2,330
$769
$1,538
11.1
11.2
11.3
11.4
11.5
11.6
(k) Having
$100,000,000 or more
gross sales or service
for the immediately
previous license or
fiscal year
$2,571
$848
$1,697
11.7
11.8
11.9
11.10
11.11
11.12
5.
Wholesale food
processor of meat
or poultry products
under supervision of
the U.S. Department
of Agriculture
11.13
11.14
11.15
11.16
11.17
(a) Having gross sales
or service of less
than $125,000 for the
immediately previous
license or fiscal year
$112
$ 37
$ 74
11.18
11.19
11.20
11.21
11.22
(b) Having $125,001
to $250,000 gross
sales or service for the
immediately previous
license or fiscal year
$214
$ 71
$141
11.23
11.24
11.25
11.26
11.27
(c) Having $250,001
to $1,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$333
$110
$220
11.28
11.29
11.30
11.31
11.32
(d) Having $1,000,001
to $5,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$425
$140
$281
11.33
11.34
11.35
11.36
11.37
(e) Having $5,000,001
to $10,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$521
$172
$344
11.38
11.39
11.40
11.41
11.42
(f) Having over
$10,000,001 gross
sales or service for the
immediately previous
license or fiscal year
$765
$252
$505
11.43
11.44
11.45
11.46
11.47
11.48
(g) Having
$15,000,001 to
$20,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$893
$295
$589
11.49
11.50
11.51
11.52
11.53
11.54
(h) Having
$20,000,001 to
$25,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$1,027
$339
$678
12.1
12.2
12.3
12.4
12.5
12.6
(i) Having
$25,000,001 to
$50,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$1,161
$383
$766
12.7
12.8
12.9
12.10
12.11
12.12
(j) Having
$50,000,001 to
$100,000,000 gross
sales or service for the
immediately previous
license or fiscal year
$1,295
$427
$855
12.13
12.14
12.15
12.16
12.17
12.18
(k) Having
$100,000,001 or more
gross sales or service
for the immediately
previous license or
fiscal year
$1,428
$471
$942
12.19
12.20
12.21
12.22
12.23
6.
Wholesale food
processor or
manufacturer
operating only at
the State Fair
$125
$ 40
$ 50
12.24
12.25
12.26
12.27
12.28
12.29
7.
Wholesale food
manufacturer having
the permission of the
commissioner to use
the name Minnesota
Farmstead cheese
$ 30
$ 10
$ 15
12.30
12.31
8.
Nonresident frozen
dairy manufacturer
$200
$ 50
$ 75
12.32
12.33
12.34
12.35
12.36
9.
Wholesale food
manufacturer
processing less than
700,000 pounds per
year of raw milk
$ 30
$ 10
$ 15
12.37
12.38
12.39
12.40
12.41
12.42
12.43
12.44
12.45
12.46
12.47
10.
A milk marketing
organization
without facilities
for processing or
manufacturing that
purchases milk
from milk producers
for delivery to a
licensed wholesale
food processor or
manufacturer
$ 50
$ 15
$ 25

12.48    Sec. 10. Minnesota Statutes 2006, section 28A.082, is amended by adding a
12.49subdivision to read:
13.1    Subd. 3. Disaster areas. If the governor declares a disaster in an area of the
13.2state, the commissioner of agriculture may waive the plan review fee and direct agency
13.3personnel to expedite the plan review process.

13.4    Sec. 11. Minnesota Statutes 2006, section 28A.09, subdivision 1, is amended to read:
13.5    Subdivision 1. Annual fee; exceptions. Every coin-operated food vending machine
13.6is subject to an annual state inspection fee of $25 for each nonexempt machine except
13.7nut vending machines which are subject to an annual state inspection fee of $10 for each
13.8machine, provided that:
13.9    (a) Food vending machines may be inspected by either a home rule charter or
13.10statutory city, or a county, but not both, and if inspected by a home rule charter or statutory
13.11city, or a county they shall not be subject to the state inspection fee, but the home rule
13.12charter or statutory city, or the county may impose an inspection or license fee of no more
13.13than the state inspection fee. A home rule charter or statutory city or county that does
13.14not inspect food vending machines shall not impose a food vending machine inspection
13.15or license fee.
13.16    (b) Vending machines dispensing only gum balls, hard candy, unsorted candy, or ice
13.17manufactured and packaged by another shall be, and water dispensing machines serviced
13.18by a cashier, are exempt from the state inspection fee, but may be inspected by the state. A
13.19home rule charter or statutory city may impose by ordinance an inspection or license fee
13.20of no more than the state inspection fee for nonexempt machines on the vending machines
13.21and water dispensing machines described in this paragraph. A county may impose
13.22by ordinance an inspection or license fee of no more than the state inspection fee for
13.23nonexempt machines on the vending machines and water dispensing machines described
13.24in this paragraph which are not located in a home rule charter or statutory city.
13.25    (c) Vending machines dispensing only bottled or canned soft drinks are exempt from
13.26the state, home rule charter or statutory city, and county inspection fees, but may be
13.27inspected by the commissioner or the commissioner's designee.

13.28    Sec. 12. Minnesota Statutes 2006, section 29.23, is amended to read:
13.2929.23 GRADING.
13.30    Subdivision 1. Grades, weight classes and standards for quality. All eggs
13.31purchased on the basis of grade by the first licensed buyer shall be graded in accordance
13.32with grade and weight classes established by the commissioner. The commissioner shall
13.33establish, by rule, and from time to time, may amend or revise, grades, weight classes,
13.34and standards for quality. When grades, weight classes, and standards for quality have
14.1been fixed by the secretary of the Department of Agriculture of the United States, they
14.2may must be accepted and published by the commissioner as definitions or standards for
14.3eggs in interstate and intrastate commerce.
14.4    Subd. 2. Equipment. The commissioner shall also by rule provide for minimum
14.5plant and equipment requirements for candling, grading, handling and storing eggs, and
14.6shall define candling. Equipment in use before July 1, 1991, that does not meet the
14.7design and fabrication requirements of this chapter may remain in use if it is in good
14.8repair, capable of being maintained in a sanitary condition, and capable of maintaining a
14.9temperature of 45 degrees Fahrenheit (7 degrees Celsius) or less.
14.10    Subd. 3. Egg temperature. Eggs must be held at a temperature not to exceed 45
14.11degrees Fahrenheit (7 degrees Celsius) after being received by the egg handler except for
14.12cleaning, sanitizing, grading, and further processing when they must immediately be
14.13placed under refrigeration that is maintained at 45 degrees Fahrenheit (7 degrees Celsius)
14.14or below. Eggs offered for retail sale must be held at a temperature not to exceed 45 41
14.15degrees Fahrenheit (7 degrees Celsius). Equipment in use prior to August 1, 1991, is not
14.16subject to this requirement. Shell eggs that have been frozen must not be offered for sale
14.17except as approved by the commissioner.
14.18    Subd. 4. Vehicle temperature. A vehicle used for the transportation of to transport
14.19shell eggs from a warehouse, retail store, candling and grading facility, or egg holding
14.20facility must have an ambient air temperature of 45 degrees Fahrenheit (7 degrees Celsius)
14.21or below.

14.22    Sec. 13. Minnesota Statutes 2006, section 31.05, is amended to read:
14.2331.05 EMBARGOES AND CONDEMNATIONS.
14.24    Subdivision 1. Definitions. As used in this section, "animals" means cattle, swine,
14.25sheep, goats, poultry, farmed cervidae, as defined in section 35.153, subdivision 3,
14.26llamas, as defined in section 17.455, subdivision 2, ratitae, as defined in section 17.453,
14.27subdivision 3, equines, and other large domesticated animals.
14.28    Subd. 1a. Tag or notice. A duly authorized agent of the commissioner who finds or
14.29has probable cause to believe that any food, animal, or consumer commodity is adulterated
14.30or so misbranded as to be dangerous or fraudulent, or is in violation of section 31.131
14.31shall affix to such article or animal a tag or other appropriate marking giving notice that
14.32such article or animal is, or is suspected of being, adulterated or misbranded and has
14.33been detained or embargoed, and warning all persons not to remove or dispose of such
14.34article or animal by sale or otherwise until permission for removal or disposal is given by
15.1such agent or the court. It shall be unlawful for any person to remove or dispose of such
15.2detained or embargoed article or animal by sale or otherwise without such permission.
15.3    Subd. 2. Action for condemnation. When an article or animal detained or
15.4embargoed under subdivision 1 has been found by such agent to be adulterated, or
15.5misbranded, the agent shall petition the district court in the county in which the article or
15.6animal is detained or embargoed for an order and decree for the condemnation of such
15.7article or animal. Any such agent who has found that an article or animal so detained or
15.8embargoed is not adulterated or misbranded, shall remove the tag or other marking.
15.9    Subd. 3. Remedies. If the court finds that a detained or embargoed article or animal
15.10is adulterated or misbranded, such article or animal shall, after entry of the decree, be
15.11destroyed at the expense of the claimant thereof, under the supervision of such agent, and
15.12all court costs and fees, and storage and other proper expenses, shall be taxed against
15.13the claimant of such article or animal or the claimant's agent; provided, that when the
15.14adulteration or misbranding can be corrected by proper labeling or processing of the article
15.15or animal, the court, after entry of the decree and after such costs, fees, and expenses have
15.16been paid and a good and sufficient bond, conditioned that such article or animal shall be
15.17so labeled or processed, has been executed, may by order direct that such article or animal
15.18be delivered to claimant thereof for such labeling or processing under the supervision of
15.19an agent of the commissioner. The expense of such supervision shall be paid by claimant.
15.20The article or animal shall be returned to the claimant and the bond shall be discharged on
15.21the representation to the court by the commissioner that the article or animal is no longer
15.22in violation and that the expenses of such supervision have been paid.
15.23    Subd. 4. Duties of commissioner. Whenever the commissioner or any of the
15.24commissioner's authorized agents shall find in any room, building, vehicle of transportation
15.25or other structure, any meat, seafood, poultry, vegetable, fruit, or other perishable articles
15.26of food which are unsound, or contain any filthy, decomposed, or putrid substance, or that
15.27may be poisonous or deleterious to health or otherwise unsafe, the same being hereby
15.28declared to be a nuisance, the commissioner, or the commissioner's authorized agent, shall
15.29forthwith condemn or destroy the same, or in any other manner render the same unsalable
15.30as human food, and no one shall have any cause of action against the commissioner or the
15.31commissioner's authorized agent on account of such action.
15.32    Subd. 5. Emergency response. In the event of an emergency declared by the
15.33governor's order under section 12.31, if the commissioner finds or has probable cause to
15.34believe that a livestock, food, or a consumer commodity within a specific area is likely
15.35to be adulterated because of the emergency or so misbranded as to be dangerous or
15.36fraudulent, or is in violation of section 31.131, subdivision 1, the commissioner may
16.1embargo a geographic area that is included in the declared emergency. The commissioner
16.2shall provide notice to the public and to those with custody of the product in as thorough a
16.3manner as is practical under the emergency circumstances.

16.4    Sec. 14. Minnesota Statutes 2006, section 31.171, is amended to read:
16.531.171 EMPLOYMENT OF DISEASED PERSON.
16.6    It shall be unlawful for any person to work in or about any place where any fruit
16.7or any food products are manufactured, packed, stored, deposited, collected, prepared,
16.8produced or sold, whose condition is such that disease may be spread to associates direct,
16.9or through the medium of milk, cream, butter, other food or food products, likely to be
16.10eaten without being cooked after handling, whether such condition be due to a contagious,
16.11or infectious, or venereal disease, in its active or convalescent stage, or to the presence of
16.12disease germs, whether accompanied by, or without, any symptoms of the disease itself.
16.13    It shall be the duty of the commissioner, or the commissioner's assistant, inspector, or
16.14agent, to report to the state commissioner of health for investigation, any person suspected
16.15to be dangerous to the public health, as provided for in this section, and immediately to
16.16exclude such person from such employment pending investigation and during the period
16.17of infectiousness, if such person is certified by the state commissioner of health, or an
16.18authorized agent, to be dangerous to the public health.

16.19    Sec. 15. Minnesota Statutes 2007 Supplement, section 31.175, is amended to read:
16.2031.175 WATER, PLUMBING, AND SEWAGE.
16.21    A person who is required by statutes administered by the Department of Agriculture,
16.22or by rules adopted pursuant to those statutes, to provide a suitable water supply,
16.23or plumbing or sewage disposal system, may shall not engage in the business of
16.24manufacturing, processing, selling, handling, or storing food at wholesale or retail
16.25unless the person's water supply is satisfactory under plumbing codes pursuant to rules
16.26adopted by the Department of Health, the person's plumbing is satisfactory pursuant to
16.27rules adopted by the Department of Labor and Industry, and the person's sewage disposal
16.28system satisfies the rules of the Pollution Control Agency.

16.29    Sec. 16. [32.416] SOMATIC CELL COUNT, GOAT MILK.
16.30    Notwithstanding any federal standard incorporated by reference in this chapter, the
16.31maximum allowable somatic cell count for raw goat milk is 1,500,000 cells per milliliter.

16.32    Sec. 17. Minnesota Statutes 2007 Supplement, section 35.244, is amended to read:
16.3335.244 RULES FOR CONTROL OF BOVINE TUBERCULOSIS.
17.1    Subdivision 1. Designation of zones. The board has the authority to control
17.2tuberculosis and the movement of cattle, bison, goats, and farmed cervidae within and
17.3between tuberculosis zones in the state. Zones within the state may be designated
17.4as accreditation preparatory, modified accredited, modified accredited advanced, or
17.5accredited free as those terms are defined in Code of Federal Regulations, title 9, part 77.
17.6    Subd. 2. Control within modified accredited zone. In a modified accredited
17.7zone, the board has the authority to:
17.8    (1) require owners of cattle, bison, goats, or farmed cervidae to report personal
17.9contact information and location of livestock to the board;
17.10    (2) require a permit or movement certificates for all cattle, bison, goats, and farmed
17.11cervidae moving between premises within the zone or leaving or entering the zone;
17.12    (3) require official identification of all cattle, bison, goats, and farmed cervidae
17.13within the zone or leaving or entering the zone;
17.14    (4) require a negative tuberculosis test within 60 days prior to movement for any
17.15individual cattle, bison, goats, or farmed cervidae leaving the zone with the exception of
17.16cattle moving under permit directly to a slaughter facility under state or federal inspection;
17.17    (5) require a whole-herd tuberculosis test within 12 months prior to moving breeding
17.18cattle out of the zone;
17.19    (6) require annual herd inventories on all cattle, bison, goat, or farmed cervidae
17.20herds;
17.21    (7) require that a risk assessment be performed to evaluate the interaction of
17.22free-ranging deer with cattle, bison, goat, and farmed cervidae herds and require the owner
17.23to implement the recommendations of the risk assessment; and
17.24    (8) provide financial assistance to a person who fences a cattle feeding area.
17.25    Subd. 3. Authority to adopt rules. The board may adopt rules to provide for the
17.26control of tuberculosis in cattle. The rules may include provisions for quarantine, tests,
17.27and such other measures as the board deems appropriate. Federal regulations, as provided
17.28by Code of Federal Regulations, title 9, part 77, and the Bovine Tuberculosis Eradication
17.29Uniform Methods and Rules, are incorporated as part of the rules in this state.
17.30EFFECTIVE DATE.This section is effective the day following final enactment.

17.31    Sec. 18. Minnesota Statutes 2007 Supplement, section 41A.105, is amended to read:
17.3241A.105 NEXTGEN ENERGY.
17.33    Subdivision 1. Purpose. It is the goal of the state through the Department of
17.34Agriculture to research and develop energy sources to displace fossil fuels with renewable
17.35technology.
18.1    Subd. 2. NextGen Energy Board. There is created a NextGen Energy Board
18.2consisting of the commissioners of agriculture, commerce, natural resources, the Pollution
18.3Control Agency, and employment and economic development; the chairs of the house and
18.4senate committees with jurisdiction over energy finance; the chairs of the house and senate
18.5committees with jurisdiction over agriculture finance; one member of the second largest
18.6political party in the house, as appointed by the chairs of the house committees with
18.7jurisdiction over agriculture finance and energy finance; one member of the second largest
18.8political party in the senate, as appointed by the chairs of the senate committees with
18.9jurisdiction over agriculture finance and energy finance; and the executive director of the
18.10Agricultural Utilization Research Institute. In addition, the governor shall appoint seven
18.11eight members: two representing statewide agriculture organizations; two representing
18.12statewide environment and natural resource conservation organizations; one representing
18.13the University of Minnesota; one representing the Minnesota Institute for Sustainable
18.14Agriculture; and one representing the Minnesota State Colleges and Universities system;
18.15and one representing the forest products industry.
18.16    Subd. 3. Duties. The board shall research and report to the commissioner of
18.17agriculture and to the legislature recommendations as to how the state can invest its
18.18resources to most efficiently achieve energy independence, agricultural and natural
18.19resources sustainability, and rural economic vitality. The board shall:
18.20    (1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen,
18.21methanol, biodiesel, and ethanol within Minnesota;
18.22    (2) develop equity grant programs to assist locally owned facilities;
18.23    (3) study the proper role of the state in creating financing and investing and
18.24providing incentives;
18.25    (4) evaluate how state and federal programs, including the Farm Bill, can best work
18.26together and leverage resources;
18.27    (5) work with other entities and committees to develop a clean energy program; and
18.28    (6) report to the legislature before February 1 each year with recommendations as
18.29to appropriations and results of past actions and projects.
18.30    Subd. 4. Commissioner's duties. The commissioner of agriculture shall administer
18.31this section.
18.32    Subd. 5. Expiration. This section expires June 30, 2009.

18.33    Sec. 19. Minnesota Statutes 2006, section 41D.01, subdivision 4, is amended to read:
18.34    Subd. 4. Expiration. This section expires on June 30, 2008 2013.
18.35EFFECTIVE DATE.This section is effective the day following final enactment.

19.1    Sec. 20. Minnesota Statutes 2006, section 97A.028, subdivision 3, is amended to read:
19.2    Subd. 3. Emergency deterrent materials assistance. (a) For the purposes of this
19.3subdivision, "cooperative damage management agreement" means an agreement between
19.4a landowner or tenant and the commissioner that establishes a program for addressing the
19.5problem of destruction of the landowner's or tenant's specialty crops or stored forage crops
19.6by wild animals, or destruction of agricultural crops by flightless Canada geese.
19.7    (b) A landowner or tenant may apply to the commissioner for emergency deterrent
19.8materials assistance in controlling destruction of the landowner's or tenant's specialty
19.9crops or stored forage crops by wild animals, or destruction of agricultural crops by
19.10flightless Canada geese. Subject to the availability of money appropriated for this purpose,
19.11the commissioner shall provide suitable deterrent materials when the commissioner
19.12determines that:
19.13    (1) immediate action is necessary to prevent significant damage from continuing
19.14or to prevent the spread of bovine tuberculosis; and
19.15    (2) a cooperative damage management agreement cannot be implemented
19.16immediately.
19.17    (c) A person may receive emergency deterrent materials assistance under this
19.18subdivision more than once, but the cumulative total value of deterrent materials provided
19.19to a person, or for use on a parcel, may not exceed $3,000 for specialty crops, $5,000 for
19.20measures to prevent the spread of bovine tuberculosis within a five-mile radius of a cattle
19.21herd that is infected with bovine tuberculosis as determined by the Board of Animal
19.22Health, $750 for protecting stored forage crops, or $500 for agricultural crops damaged by
19.23flightless Canada geese. If a person is a co-owner or cotenant with respect to the specialty
19.24crops for which the deterrent materials are provided, the deterrent materials are deemed to
19.25be "provided" to the person for the purposes of this paragraph.
19.26    (d) As a condition of receiving emergency deterrent materials assistance under this
19.27subdivision, a landowner or tenant shall enter into a cooperative damage management
19.28agreement with the commissioner. Deterrent materials provided by the commissioner may
19.29include repellents, fencing materials, or other materials recommended in the agreement
19.30to alleviate the damage problem. If requested by a landowner or tenant, any fencing
19.31materials provided must be capable of providing long-term protection of specialty crops.
19.32A landowner or tenant who receives emergency deterrent materials assistance under
19.33this subdivision shall comply with the terms of the cooperative damage management
19.34agreement.

19.35    Sec. 21. Minnesota Statutes 2006, section 148.01, subdivision 1, is amended to read:
20.1    Subdivision 1. Definitions. For the purposes of sections 148.01 to 148.10,:
20.2    (1) "chiropractic" is defined as the science of adjusting any abnormal articulations of
20.3the human body, especially those of the spinal column, for the purpose of giving freedom
20.4of action to impinged nerves that may cause pain or deranged function; and
20.5    (2) "animal chiropractic diagnosis and treatment" means treatment that includes,
20.6but is not limited to, identifying and resolving vertebral subluxation complexes, spinal
20.7manipulation, and manipulation of the extremity articulations of nonhuman vertebrates.
20.8"Animal chiropractic diagnosis and treatment" does not include:
20.9    (i) performing surgery;
20.10    (ii) dispensing or administering of medications; or
20.11    (iii) performing traditional veterinary care and diagnosis.

20.12    Sec. 22. Minnesota Statutes 2006, section 148.01, is amended by adding a subdivision
20.13to read:
20.14    Subd. 1a. Animal chiropractic practice. A licensed chiropractor may engage in the
20.15practice of animal chiropractic diagnosis and treatment if registered to do so by the board.

20.16    Sec. 23. Minnesota Statutes 2006, section 148.01, is amended by adding a subdivision
20.17to read:
20.18    Subd. 1c. Scope of practice; animal chiropractic. Criteria for registration
20.19to engage in the practice of animal chiropractic diagnosis and treatment must be set
20.20by the board, and must include, but are not limited to: active chiropractic license;
20.21education and training in the field of animal chiropractic from an American Veterinary
20.22Chiropractic Association, International Veterinary Chiropractic Association, or higher
20.23institution-approved course consisting of no less than 210 hours, meeting continuing
20.24education requirements; and other conditions and rules set by the board.

20.25    Sec. 24. Minnesota Statutes 2006, section 148.01, is amended by adding a subdivision
20.26to read:
20.27    Subd. 1d. Titles. Notwithstanding the limitations established in section 156.12,
20.28subdivision 4, a doctor of chiropractic properly registered to provide chiropractic care to
20.29animals in accordance with this chapter and rules of the board, may use the title "animal
20.30chiropractor."

20.31    Sec. 25. Minnesota Statutes 2006, section 148.01, is amended by adding a subdivision
20.32to read:
21.1    Subd. 1e. Provisional interim statute. Upon approval by the board, a licensed
21.2chiropractor who has already taken and passed the education and training requirement set
21.3forth in section 148.01, subdivision 1c, may engage in the practice of animal chiropractic
21.4during the time that the rules are being promulgated by the board. Enforcement actions
21.5may not be taken against persons who have completed the approved program of study
21.6by the American Veterinary Chiropractic Association or the International Veterinary
21.7Chiropractic Association until the rules have been adopted by the board.

21.8    Sec. 26. [148.032] EDUCATIONAL CRITERIA FOR LICENSURE IN ANIMAL
21.9CHIROPRACTIC DIAGNOSIS AND TREATMENT; RECORDS; TREATMENT
21.10NOTES.
21.11    (a) The following educational criteria must be applied to any licensed chiropractor
21.12who requests registration in animal chiropractic diagnosis and treatment. The criteria must
21.13include education and training in the following subjects:
21.14    (1) anatomy;
21.15    (2) anatomy laboratory;
21.16    (3) biomechanics and gait;
21.17    (4) chiropractic educational basics;
21.18    (5) animal chiropractic diversified adjusting technique, including:
21.19    (i) lecture cervical;
21.20    (ii) thoracic;
21.21    (iii) lumbosacral;
21.22    (iv) pelvic; and
21.23    (v) extremity;
21.24    (6) animal chiropractic diversified adjusting technique, including:
21.25    (i) laboratory cervical;
21.26    (ii) thoracic;
21.27    (iii) lumbosacral;
21.28    (iv) pelvic; and
21.29    (v) extremity;
21.30    (7) case management and case studies;
21.31    (8) chiropractic philosophy;
21.32    (9) ethics and legalities;
21.33    (10) neurology, neuroanatomy, and neurological conditions;
21.34    (11) pathology;
21.35    (12) radiology;
21.36    (13) research in current chiropractic and veterinary topics;
22.1    (14) rehabilitation, current topics, evaluation, and assessment;
22.2    (15) normal foot anatomy and normal foot care;
22.3    (16) saddle fit and evaluation, lecture and laboratory;
22.4    (17) veterinary educational basics;
22.5    (18) vertebral subluxation complex; and
22.6    (19) zoonotic diseases.
22.7    (b) A licensed chiropractor requesting registration in animal chiropractic diagnosis
22.8and treatment must have completed and passed a course of study from an American
22.9Veterinary Chiropractic Association, International Veterinary Chiropractic Association, or
22.10higher institution-approved program, consisting of no less than 210 hours of education
22.11and training as set forth in paragraph (a).
22.12    (c) A licensed chiropractor engaged in the practice of animal chiropractic diagnosis
22.13and treatment must maintain complete and accurate records and patient files in the
22.14chiropractor's office for at least three years.
22.15    (d) A licensed chiropractor engaged in the practice of animal chiropractic diagnosis
22.16and treatment must make treatment notes and records available to the patient's owner
22.17upon request and must communicate their findings and treatment plan with the referring
22.18veterinarian, or the animal's veterinarian if the animal has not been referred by a
22.19veterinarian.

22.20    Sec. 27. [148.033] ANIMAL CHIROPRACTIC CONTINUING EDUCATION
22.21HOURS.
22.22    Any chiropractor engaged in the practice of animal chiropractic diagnosis and
22.23treatment applying for renewal of a registration related to animal chiropractic diagnosis
22.24and treatment must have completed a minimum of six hours annually of continuing
22.25education in animal chiropractic diagnosis and treatment, in addition to the required 20
22.26hours annually of continuing education in human chiropractic under this chapter. The
22.27continuing education course attended for purposes of complying with this section must be
22.28approved by the board prior to attendance by the chiropractor.

22.29    Sec. 28. Laws 2007, chapter 45, article 1, section 3, subdivision 3, is amended to read:
22.30
22.31
Subd. 3. Agricultural Marketing and
Development
8,547,000
5,157,000
22.32$186,000 the first year and $186,000 the
22.33second year are for transfer to the Minnesota
22.34grown account and may be used as grants
22.35for Minnesota grown promotion under
23.1Minnesota Statutes, section 17.102. Grants
23.2may be made for one year. Notwithstanding
23.3Minnesota Statutes, section 16A.28, the
23.4appropriations encumbered under contract on
23.5or before June 30, 2009, for Minnesota grown
23.6grants in this paragraph are available until
23.7June 30, 2011. $50,000 of the appropriation
23.8in each year is for efforts that identify
23.9and promote Minnesota grown products
23.10in retail food establishments including but
23.11not limited to restaurants, grocery stores,
23.12and convenience stores. The balance in the
23.13Minnesota grown matching account in the
23.14agricultural fund is canceled to the Minnesota
23.15grown account in the agricultural fund and
23.16the Minnesota grown matching account is
23.17abolished.
23.18$160,000 the first year and $160,000 the
23.19second year are for grants to farmers for
23.20demonstration projects involving sustainable
23.21agriculture as authorized in Minnesota
23.22Statutes, section 17.116. Of the amount
23.23for grants, up to $20,000 may be used for
23.24dissemination of information about the
23.25demonstration projects. Notwithstanding
23.26Minnesota Statutes, section 16A.28, the
23.27appropriations encumbered under contract
23.28on or before June 30, 2009, for sustainable
23.29agriculture grants in this paragraph are
23.30available until June 30, 2011.
23.31$100,000 the first year and $100,000
23.32the second year are to provide training
23.33and technical assistance to county and
23.34town officials relating to livestock siting
23.35issues and local zoning and land use
23.36planning, including a checklist template that
24.1would clarify the federal, state, and local
24.2government requirements for consideration
24.3of an animal agriculture modernization
24.4or expansion project. In developing
24.5the training and technical assistance
24.6program, the commissioner shall seek
24.7guidance, advice, and support of livestock
24.8producer organizations, general agricultural
24.9organizations, local government associations,
24.10academic institutions, other government
24.11agencies, and others with expertise in land
24.12use and agriculture.
24.13$103,000 the first year and $106,000 the
24.14second year are for additional integrated pest
24.15management activities.
24.16$2,500,000 the first year is for the agricultural
24.17best management practices loan program. At
24.18least $2,000,000 is available for pass-through
24.19to local governments and lenders for
24.20low-interest loans. Any unencumbered
24.21balance does not cancel at the end of the first
24.22year and is available for the second year.
24.23$1,000,000 the first year is for the agricultural
24.24best management practices loan program for
24.25capital equipment loans for persons using
24.26native, perennial cropping systems for energy
24.27or seed production. This appropriation is
24.28available until spent. * (The preceding text
24.29beginning "$1,000,000 the first year" was
24.30indicated as vetoed by the governor.)
24.31$100,000 the first year and $100,000 the
24.32second year are for annual cost-share
24.33payments to resident farmers or persons
24.34who sell, process, or package agricultural
24.35products in this state for the costs of organic
25.1certification. Annual cost-share payments
25.2per farmer must be two-thirds of the cost
25.3of the certification or $350, whichever is
25.4less. In any year that a resident farmer or
25.5person who sells, processes, or packages
25.6agricultural products in this state receives
25.7a federal organic certification cost-share
25.8payment, that resident farmer or person is
25.9not eligible for state cost-share payments.
25.10A certified farmer is eligible to receive
25.11annual certification cost-share payments for
25.12up to five years. $15,000 each year is for
25.13organic market and program development.
25.14The commissioner may allocate any excess
25.15appropriation in either fiscal year for organic
25.16producer education efforts, assistance for
25.17persons transitioning from conventional
25.18to organic agriculture, or sustainable
25.19agriculture demonstration grants authorized
25.20under Minnesota Statutes, section 17.116,
25.21and pertaining to organic research or
25.22demonstration. Any unencumbered balance
25.23does not cancel at the end of the first year
25.24and is available for the second year.
25.25EFFECTIVE DATE.This section is effective the day following final enactment.

25.26    Sec. 29. Laws 2007, chapter 45, article 1, section 3, subdivision 4, is amended to read:
25.27
25.28
Subd. 4. Bioenergy and Value-Added
Agricultural Products
19,918,000
15,168,000
25.29$15,168,000 the first year and $15,168,000
25.30the second year are for ethanol producer
25.31payments under Minnesota Statutes, section
25.3241A.09 . If the total amount for which all
25.33producers are eligible in a quarter exceeds
25.34the amount available for payments, the
25.35commissioner shall make payments on a
26.1pro rata basis. If the appropriation exceeds
26.2the total amount for which all producers
26.3are eligible in a fiscal year for scheduled
26.4payments and for deficiencies in payments
26.5during previous fiscal years, the balance
26.6in the appropriation is available to the
26.7commissioner for value-added agricultural
26.8programs including the value-added
26.9agricultural product processing and
26.10marketing grant program under Minnesota
26.11Statutes, section 17.101, subdivision 5. The
26.12appropriation remains available until spent.
26.13$3,000,000 the first year is for grants to
26.14bioenergy projects. The NextGen Energy
26.15Board shall make recommendations to
26.16the commissioner on grants for owners of
26.17Minnesota facilities producing bioenergy,
26.18organizations that provide for on-station,
26.19on-farm field scale research and outreach to
26.20develop and test the agronomic and economic
26.21requirements of diverse stands of prairie
26.22plants and other perennials for bioenergy
26.23systems, or certain nongovernmental
26.24entities. For the purposes of this paragraph,
26.25"bioenergy" includes transportation fuels
26.26derived from cellulosic material as well as
26.27the generation of energy for commercial heat,
26.28industrial process heat, or electrical power
26.29from cellulosic material via gasification
26.30or other processes. The board must give
26.31priority to a bioenergy facility that is at
26.32least 60 percent owned and controlled by
26.33farmers, as defined in Minnesota Statutes,
26.34section 500.24, subdivision 2, paragraph
26.35(n), or natural persons residing in the
26.36county or counties contiguous to where the
27.1facility is located. Grants are limited to 50
27.2percent of the cost of research, technical
27.3assistance, or equipment related to bioenergy
27.4production or $500,000, whichever is less.
27.5Grants to nongovernmental entities for the
27.6development of business plans and structures
27.7related to community ownership of eligible
27.8bioenergy facilities together may not exceed
27.9$150,000. The board shall make a good
27.10faith effort to select projects that have
27.11merit and when taken together represent a
27.12variety of bioenergy technologies, biomass
27.13feedstocks, and geographic regions of the
27.14state. Projects must have a qualified engineer
27.15certification on the technology and fuel
27.16source. Grantees shall provide reports at
27.17the request of the commissioner and must
27.18actively participate in the Agricultural
27.19Utilization Research Institute's Renewable
27.20Energy Roundtable. No later than February
27.211, 2009, the commissioner shall report on
27.22the projects funded under this appropriation
27.23to the house and senate committees with
27.24jurisdiction over agriculture finance. The
27.25commissioner's costs in administering the
27.26program may be paid from the appropriation.
27.27Any unencumbered balance does not cancel
27.28at the end of the first year and is available in
27.29the second year.
27.30$350,000 the first year is for grants to
27.31the Minnesota Institute for Sustainable
27.32Agriculture at the University of Minnesota
27.33to provide funds for on-station and on-farm
27.34field scale research and outreach to develop
27.35and test the agronomic and economic
27.36requirements of diverse stands of prairie
28.1plants and other perennials for bioenergy
28.2systems including, but not limited to,
28.3multiple species selection and establishment,
28.4ecological management between planting
28.5and harvest, harvest technologies, financial
28.6and agronomic risk management, farmer
28.7goal setting and adoption of technologies,
28.8integration of wildlife habitat into
28.9management approaches, evaluation of
28.10carbon and other benefits, and robust policies
28.11needed to induce farmer conversion on
28.12marginal lands. * (The preceding text
28.13beginning "$350,000 the first year" was
28.14indicated as vetoed by the governor.)
28.15$200,000 the first year is for a grant to the
28.16Minnesota Turf Seed Council for basic
28.17and applied agronomic research on native
28.18plants, including plant breeding, nutrient
28.19management, pest management, disease
28.20management, yield, and viability. The grant
28.21recipient may subcontract with a qualified
28.22third party for some or all of the basic
28.23or applied research. The grant recipient
28.24must actively participate in the Agricultural
28.25Utilization Research Institute's Renewable
28.26Energy Roundtable and no later than
28.27February 1, 2009, must report to the house
28.28and senate committees with jurisdiction
28.29over agriculture finance. This is a onetime
28.30appropriation and is available until spent.
28.31$200,000 the first year is for a grant to a joint
28.32venture combined heat and power energy
28.33facility located in Scott or LeSueur County
28.34for the creation of a centrally located biomass
28.35fuel supply depot with the capability of
28.36unloading, processing, testing, scaling, and
29.1storing renewable biomass fuels. The grant
29.2must be matched by at least $3 of nonstate
29.3funds for every $1 of state funds. The grant
29.4recipient must actively participate in the
29.5Agricultural Utilization Research Institute's
29.6Renewable Energy Roundtable and no
29.7later than February 1, 2009, must report
29.8to the house and senate committees with
29.9jurisdiction over agriculture finance. This is
29.10a onetime appropriation and is available until
29.11spent.
29.12$300,000 the first year is for a grant to the
29.13Bois Forte Band of Chippewa for a feasibility
29.14study of a renewable energy biofuels
29.15demonstration facility on the Bois Forte
29.16Reservation in St. Louis and Koochiching
29.17Counties. The grant shall be used by the Bois
29.18Forte Band to conduct a detailed feasibility
29.19study of the economic and technical viability
29.20of developing a multistream renewable
29.21energy biofuels demonstration facility
29.22on Bois Forte Reservation land to utilize
29.23existing forest resources, woody biomass,
29.24and cellulosic material to produce biofuels or
29.25bioenergy. The grant recipient must actively
29.26participate in the Agricultural Utilization
29.27Research Institute's Renewable Energy
29.28Roundtable and no later than February 1,
29.292009, must report to the house and senate
29.30committees with jurisdiction over agriculture
29.31finance. This is a onetime appropriation and
29.32is available until spent.
29.33$300,000 the first year is for a grant to
29.34the White Earth Band of Chippewa for a
29.35feasibility study of a renewable energy
29.36biofuels production, research, and production
30.1facility on the White Earth Reservation in
30.2Mahnomen County. The grant must be used
30.3by the White Earth Band and the University
30.4of Minnesota to conduct a detailed feasibility
30.5study of the economic and technical viability
30.6of (1) developing a multistream renewable
30.7energy biofuels demonstration facility on
30.8White Earth Reservation land to utilize
30.9existing forest resources, woody biomass,
30.10and cellulosic material to produce biofuels or
30.11bioenergy, and (2) developing, harvesting,
30.12and marketing native prairie plants and seeds
30.13for bioenergy production. The grant recipient
30.14must actively participate in the Agricultural
30.15Utilization Research Institute's Renewable
30.16Energy Roundtable and no later than
30.17February 1, 2009, must report to the house
30.18and senate committees with jurisdiction
30.19over agriculture finance. This is a onetime
30.20appropriation and is available until spent.
30.21$200,000 the first year is for a grant to the Elk
30.22River Economic Development Authority for
30.23upfront engineering and a feasibility study
30.24of the Elk River renewable fuels facility.
30.25The facility must use a plasma gasification
30.26process to convert primarily cellulosic
30.27material, but may also use plastics and other
30.28components from municipal solid waste, as
30.29feedstock for the production of methanol
30.30for use in biodiesel production facilities.
30.31Any unencumbered balance in fiscal year
30.322008 does not cancel but is available for
30.33fiscal year 2009. Notwithstanding Minnesota
30.34Statutes, section 16A.285, the agency must
30.35not transfer this appropriation. The grant
30.36recipient must actively participate in the
31.1Agricultural Utilization Research Institute's
31.2Renewable Energy Roundtable and no
31.3later than February 1, 2009, must report
31.4to the house and senate committees with
31.5jurisdiction over agriculture finance. This is
31.6a onetime appropriation and is available until
31.7spent.
31.8$200,000 the first year is for a grant to
31.9Chisago County to conduct a detailed
31.10feasibility study of the economic and
31.11technical viability of developing a
31.12multistream renewable energy biofuels
31.13demonstration facility in Chisago, Isanti,
31.14or Pine County to utilize existing forest
31.15resources, woody biomass, and cellulosic
31.16material to produce biofuels or bioenergy.
31.17Chisago County may expend funds to Isanti
31.18and Pine Counties and the University of
31.19Minnesota for any costs incurred as part
31.20of the study. The feasibility study must
31.21consider the capacity of: (1) the seed bank
31.22at Wild River State Park to expand the
31.23existing prairie grass, woody biomass, and
31.24cellulosic material resources in Chisago,
31.25Isanti, and Pine Counties; (2) willing and
31.26interested landowners in Chisago, Isanti, and
31.27Pine Counties to grow cellulosic materials;
31.28and (3) the Minnesota Conservation Corps,
31.29the sentence to serve program, and other
31.30existing workforce programs in east central
31.31Minnesota to contribute labor to these efforts.
31.32The grant recipient must actively participate
31.33in the Agricultural Utilization Research
31.34Institute's Renewable Energy Roundtable and
31.35no later than February 1, 2009, must report
31.36to the house and senate committees with
32.1jurisdiction over agriculture finance. This is
32.2a onetime appropriation and is available until
32.3spent.
32.4EFFECTIVE DATE.This section is effective the day following final enactment.

32.5    Sec. 30. Laws 2007, chapter 45, article 1, section 3, subdivision 5, is amended to read:
32.6
32.7
Subd. 5. Administration and Financial
Assistance
7,338,000
6,751,000
32.8$1,005,000 the first year and $1,005,000
32.9the second year are for continuation of
32.10the dairy development and profitability
32.11enhancement and dairy business planning
32.12grant programs established under Laws 1997,
32.13chapter 216, section 7, subdivision 2, and
32.14Laws 2001, First Special Session chapter 2,
32.15section 9, subdivision 2 . The commissioner
32.16may allocate the available sums among
32.17permissible activities, including efforts to
32.18improve the quality of milk produced in the
32.19state in the proportions that the commissioner
32.20deems most beneficial to Minnesota's dairy
32.21farmers. The commissioner must submit a
32.22work plan detailing plans for expenditures
32.23under this program to the chairs of the
32.24house and senate committees dealing with
32.25agricultural policy and budget on or before
32.26the start of each fiscal year. If significant
32.27changes are made to the plans in the course
32.28of the year, the commissioner must notify the
32.29chairs.
32.30$50,000 the first year and $50,000 the
32.31second year are for the Northern Crops
32.32Institute. These appropriations may be spent
32.33to purchase equipment.
33.1$19,000 the first year and $19,000 the
33.2second year are for a grant to the Minnesota
33.3Livestock Breeders Association.
33.4$250,000 the first year and $250,000 the
33.5second year are for grants to the Minnesota
33.6Agricultural Education Leadership Council
33.7for programs of the council under Minnesota
33.8Statutes, chapter 41D.
33.9$600,000 the first year is for grants for
33.10fertilizer research as awarded by the
33.11Minnesota Agricultural Fertilizer Research
33.12and Education Council under Minnesota
33.13Statutes, section 18C.71. No later than
33.14February 1, 2009, The amount available to
33.15the commissioner pursuant to Minnesota
33.16Statutes, section 18C.70, subdivision 2, for
33.17administration of this activity is available
33.18until February 1, 2009, by which time the
33.19commissioner shall report to the house and
33.20senate committees with jurisdiction over
33.21agriculture finance. The report must include
33.22the progress and outcome of funded projects
33.23as well as the sentiment of the council
33.24concerning the need for additional research
33.25funded through an industry checkoff fee.
33.26$465,000 the first year and $465,000 the
33.27second year are for payments to county and
33.28district agricultural societies and associations
33.29under Minnesota Statutes, section 38.02,
33.30subdivision 1
. Aid payments to county and
33.31district agricultural societies and associations
33.32shall be disbursed not later than July 15 of
33.33each year. These payments are the amount of
33.34aid owed by the state for an annual fair held
33.35in the previous calendar year.
34.1$65,000 the first year and $65,000 the second
34.2year are for annual grants to the Minnesota
34.3Turf Seed Council for basic and applied
34.4research on the improved production of
34.5forage and turf seed related to new and
34.6improved varieties. The grant recipient may
34.7subcontract with a qualified third party for
34.8some or all of the basic and applied research.
34.9$500,000 the first year and $500,000 the
34.10second year are for grants to Second Harvest
34.11Heartland on behalf of Minnesota's six
34.12Second Harvest food banks for the purchase
34.13of milk for distribution to Minnesota's food
34.14shelves and other charitable organizations
34.15that are eligible to receive food from the food
34.16banks. Milk purchased under the grants must
34.17be acquired from Minnesota milk processors
34.18and based on low-cost bids. The milk must be
34.19allocated to each Second Harvest food bank
34.20serving Minnesota according to the formula
34.21used in the distribution of United States
34.22Department of Agriculture commodities
34.23under The Emergency Food Assistance
34.24Program (TEFAP). Second Harvest
34.25Heartland must submit quarterly reports
34.26to the commissioner on forms prescribed
34.27by the commissioner. The reports must
34.28include, but are not limited to, information
34.29on the expenditure of funds, the amount
34.30of milk purchased, and the organizations
34.31to which the milk was distributed. Second
34.32Harvest Heartland may enter into contracts
34.33or agreements with food banks for shared
34.34funding or reimbursement of the direct
34.35purchase of milk. Each food bank receiving
34.36money from this appropriation may use up to
35.1two percent of the grant for administrative
35.2expenses.
35.3$100,000 the first year and $100,000 the
35.4second year are for transfer to the Board of
35.5Trustees of the Minnesota State Colleges and
35.6Universities for mental health counseling
35.7support to farm families and business
35.8operators through farm business management
35.9programs at Central Lakes College and
35.10Ridgewater College.
35.11$18,000 the first year and $18,000 the
35.12second year are for grants to the Minnesota
35.13Horticultural Society.
35.14$50,000 is for a grant to the University of
35.15Minnesota, Department of Horticultural
35.16Science, Enology Laboratory, to upgrade
35.17and purchase instrumentation to allow
35.18rapid and accurate measurement of enology
35.19components. This is a onetime appropriation
35.20and is available until expended.

35.21    Sec. 31. Laws 2007, chapter 45, article 1, section 22, is amended to read:
35.22    Sec. 22. Minnesota Statutes 2006, section 18B.065, subdivision 1, is amended to
35.23read:
35.24    Subdivision 1. Collection and disposal. The commissioner of agriculture shall
35.25establish and operate a program to collect and dispose of waste pesticides. The program
35.26must be made available to agriculture agricultural and residential pesticide end users
35.27whose waste generating activity occurs in this state.
35.28EFFECTIVE DATE.This section is effective July 1, 2008, and applies to all
35.29cooperative agreements entered into by the commissioner of agriculture and local units of
35.30government for waste pesticide collection and disposal after that date.

35.31    Sec. 32. Laws 2007, chapter 45, article 1, section 23, is amended to read:
35.32    Sec. 23. Minnesota Statutes 2006, section 18B.065, subdivision 2a, is amended to
35.33read:
36.1    Subd. 2a. Disposal site requirement. (a) For agricultural waste pesticides, the
36.2commissioner must designate a place in each county of the state that is available at least
36.3every other year for persons to dispose of unused portions of agricultural pesticides
36.4in accordance with subdivision 1. The commissioner shall consult with the person
36.5responsible for solid waste management and disposal in each county to determine an
36.6appropriate location and to advertise each collection event.
36.7    (b) For residential waste pesticides, the commissioner must provide periodic
36.8disposal opportunities each year in each county. As provided under subdivision 7, the
36.9commissioner may enter into agreements with county or regional solid waste management
36.10entities to provide these collections and shall provide these entities with funding for all
36.11costs incurred, including but not limited to related supplies, transportation, advertising,
36.12and disposal costs as well as reasonable overhead costs.
36.13    (c) The person responsible for waste pesticide collections under paragraphs (a) and
36.14(b) shall record information on each waste pesticide product collected, including but not
36.15limited to the product name, active ingredient or ingredients, and the quantity. The person
36.16must submit this information to the commissioner at least annually.
36.17EFFECTIVE DATE.This section is effective July 1, 2008, and applies to all
36.18cooperative agreements entered into by the commissioner of agriculture and local units of
36.19government for waste pesticide collection and disposal after that date.

36.20    Sec. 33. Laws 2007, chapter 45, article 1, section 24, is amended to read:
36.21    Sec. 24. Minnesota Statutes 2006, section 18B.26, subdivision 3, is amended to read:
36.22    Subd. 3. Application fee. (a) A registrant shall pay an annual application fee for
36.23each pesticide to be registered, and this fee is set at 0.4 percent of annual gross sales
36.24within the state and annual gross sales of pesticides used in the state, with a minimum
36.25nonrefundable fee of $250. The registrant shall determine when and which pesticides
36.26are sold or used in this state. The registrant shall secure sufficient sales information of
36.27pesticides distributed into this state from distributors and dealers, regardless of distributor
36.28location, to make a determination. Sales of pesticides in this state and sales of pesticides
36.29for use in this state by out-of-state distributors are not exempt and must be included in the
36.30registrant's annual report, as required under paragraph (c), and fees shall be paid by the
36.31registrant based upon those reported sales. Sales of pesticides in the state for use outside
36.32of the state are exempt from the application fee in this paragraph if the registrant properly
36.33documents the sale location and distributors. A registrant paying more than the minimum
36.34fee shall pay the balance due by March 1 based on the gross sales of the pesticide by the
36.35registrant for the preceding calendar year. The fee for disinfectants and sanitizers shall be
37.1the minimum. The minimum fee is due by December 31 preceding the year for which
37.2the application for registration is made. The commissioner shall spend at least $400,000,
37.3not including the commissioner's administrative costs, per fiscal year from the pesticide
37.4regulatory account for the purposes of the waste pesticide collection program In each
37.5fiscal year, the commissioner shall allocate from the pesticide regulatory account a sum
37.6sufficient to collect and dispose of waste pesticides under section 18B.065.
37.7    (b) An additional fee of $100 must be paid by the applicant for each pesticide to be
37.8registered if the application is a renewal application that is submitted after December 31.
37.9    (c) A registrant must annually report to the commissioner the amount and type of
37.10each registered pesticide sold, offered for sale, or otherwise distributed in the state. The
37.11report shall be filed by March 1 for the previous year's registration. The commissioner
37.12shall specify the form of the report and require additional information deemed necessary
37.13to determine the amount and type of pesticides annually distributed in the state. The
37.14information required shall include the brand name, amount, and formulation of each
37.15pesticide sold, offered for sale, or otherwise distributed in the state, but the information
37.16collected, if made public, shall be reported in a manner which does not identify a specific
37.17brand name in the report.
37.18    (d) A registrant who is required to pay more than the minimum fee for any pesticide
37.19under paragraph (a) must pay a late fee penalty of $100 for each pesticide application fee
37.20paid after March 1 in the year for which the license is to be issued.
37.21EFFECTIVE DATE.This section is effective July 1, 2008, and applies to all
37.22cooperative agreements entered into by the commissioner of agriculture and local units of
37.23government for waste pesticide collection and disposal after that date.

37.24    Sec. 34. INDUSTRIAL HEMP DEVELOPMENT AND REGULATION.
37.25    (a) The commissioner of agriculture shall create a detailed proposal for establishing
37.26industrial hemp as a cash crop option for Minnesota's agricultural producers. The
37.27commissioner shall evaluate industrial hemp laws in other states and propose a system
37.28of licensure and regulation that does not interfere with the strict regulation of controlled
37.29substances in this state. Commercial industrial hemp production would not be allowed
37.30and the commissioner would not promulgate any administrative rules until the United
37.31States Department of Justice, Drug Enforcement Administration, authorizes a person to
37.32commercially grow industrial hemp in the United States.
37.33    (b) No later than January 15, 2009, the commissioner shall present the proposal in
37.34paragraph (a) to the house and senate committees with jurisdiction over agriculture and
37.35public safety policy and finance.

38.1    Sec. 35. REPEALER.
38.2Minnesota Statutes 2006, section 18C.60, subdivision 4, is repealed.

38.3ARTICLE 2
38.4BIODIESEL FUEL CONTENT

38.5    Section 1. Minnesota Statutes 2006, section 239.77, as amended by Laws 2007, chapter
38.662, sections 3 and 4, is amended to read:
38.7239.77 BIODIESEL CONTENT MANDATE.
38.8    Subdivision 1. Biodiesel fuel. "Biodiesel fuel" means a renewable, biodegradable,
38.9mono alkyl ester combustible liquid fuel that is derived from agricultural or other
38.10plant oils or animal fats and; that meets American Society For Testing and Materials
38.11specification D6751-07 for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels;
38.12and that is manufactured by a person certified by the BQ-9000 National Biodiesel
38.13Accreditation Program.
38.14    Subd. 2. Minimum content. (a) Except as otherwise provided in this section, all
38.15diesel fuel sold or offered for sale in Minnesota for use in internal combustion engines
38.16must contain at least 2.0 percent the stated percentage of biodiesel fuel oil by volume
38.17on and after the following dates:
38.18
(1)
September 29, 2005
2 percent
38.19
(2)
May 1, 2009
5 percent
38.20
(3)
May 1, 2012
10 percent
38.21
(4)
May 1, 2015
20 percent
38.22    The minimum content levels in clauses (3) and (4) are effective during the months of
38.23April, May, June, July, August, September, and October only. The minimum content for
38.24the remainder of the year is five percent. However, if the commissioners of agriculture,
38.25commerce, and pollution control determine, after consultation with the Biodiesel Task
38.26Force and other technical experts, that an American Society for Testing and Materials
38.27specification or equivalent federal standard exists for the specified biodiesel blend level in
38.28those clauses that adequately addresses technical issues associated with Minnesota's cold
38.29weather and publish a notice in the State Register to that effect, the commissioners may
38.30allow the specified biodiesel blend level in those clauses to be effective year-round.
38.31    (b) The minimum content levels in paragraph (a), clauses (3) and (4), become
38.32effective on the date specified only if the commissioners of agriculture, commerce,
38.33and pollution control publish notice in the State Register and provide written notice to
38.34the chairs of the house of representatives and senate committees with jurisdiction over
39.1agriculture, commerce, and transportation policy and finance, at least 270 days prior to the
39.2date of each scheduled increase, that all of the following conditions have been met and the
39.3state is prepared to move to the next scheduled minimum content level:
39.4    (1) an American Society for Testing and Materials specification or equivalent federal
39.5standard exists for the next minimum diesel-biodiesel blend;
39.6    (2) a sufficient supply of biodiesel is available and the amount of biodiesel produced
39.7in this state is equal to at least 50 percent of anticipated demand at the next minimum
39.8content level; and
39.9    (3) adequate blending infrastructure and regulatory protocol are in place in order to
39.10promote biodiesel quality and avoid any potential economic disruption.
39.11    (c) The commissioners of agriculture, commerce, and pollution control must consult
39.12with the Biodiesel Task Force when assessing and certifying conditions in paragraph (b),
39.13and in general must seek the guidance of the Biodiesel Task Force regarding biodiesel
39.14labeling, enforcement, and other related issues.
39.15    (d) During a period of biodiesel fuel shortage or a problem with biodiesel quality
39.16that negatively affects the availability of biodiesel fuel, the commissioner of commerce
39.17may temporarily suspend the minimum content requirement in subdivision 2 until there
39.18is sufficient biodiesel fuel, as defined in subdivision 1, available to fulfill the minimum
39.19content requirement.
39.20    (e) By February 1, 2012, and periodically thereafter, the commissioner of commerce
39.21shall determine the wholesale diesel price at various pipeline and refinery terminals in
39.22the region, and the biodiesel price at biodiesel plants in the region after any applicable
39.23per gallon federal tax credit is subtracted. The commissioner shall report wholesale price
39.24differences to the governor who, after consultation with the commissioners of commerce
39.25and agriculture, may by executive order adjust the biodiesel mandate if a price disparity
39.26reported by the commissioner will cause economic hardship to retailers of diesel fuel
39.27in this state. Any adjustment must be for a specified period of time, after which the
39.28percentage of biodiesel fuel to be blended into diesel fuel returns to the amount required in
39.29subdivision 2. The biodiesel mandate must not be adjusted to less than five percent.
39.30    Subd. 3. Exceptions. (a) The minimum content requirement requirements of
39.31subdivision 2 does do not apply to fuel used in the following equipment:
39.32    (1) motors located at an electric generating plant regulated by the Nuclear
39.33Regulatory Commission;
39.34    (2) railroad locomotives; and
39.35    (3) off-road taconite and copper mining equipment and machinery;
39.36    (4) off-road logging equipment and machinery; and
40.1    (5) vehicles and equipment used exclusively on an aircraft landing field.
40.2    (b) The exemption in paragraph (a), clause (1), expires 30 days after the Nuclear
40.3Regulatory Commission has approved the use of biodiesel fuel in motors at electric
40.4generating plants under its regulation.
40.5    (c) This subdivision expires on May 1, 2012.
40.6    Subd. 4. Disclosure. A refinery or terminal shall provide, at the time diesel fuel
40.7is sold or transferred from the refinery or terminal, a bill of lading or shipping manifest
40.8to the person who receives the fuel. For biodiesel-blended products, the bill of lading or
40.9shipping manifest must disclose biodiesel content, stating volume percentage, gallons of
40.10biodiesel per gallons of petroleum diesel base-stock, or an ASTM "Bxx" designation
40.11where "xx" denotes the volume percent biodiesel included in the blended product. This
40.12subdivision does not apply to sales or transfers of biodiesel blend stock between refineries,
40.13between terminals, or between a refinery and a terminal.

40.14    Sec. 2. Minnesota Statutes 2006, section 239.77, is amended by adding a subdivision
40.15to read:
40.16    Subd. 5. Annual Report. Beginning in 2009, the commissioner of agriculture
40.17must report by January 15 of each year to the chairs and ranking minority members of
40.18the legislative committees and divisions with jurisdiction over agriculture policy and
40.19finance regarding the implementation of the minimum content requirements in subdivision
40.202, including information about the price and supply of biodiesel fuel. The report must
40.21include any written comments received from members of the Biodiesel Fuel Task Force
40.22by January 1 of that year.

40.23    Sec. 3. Minnesota Statutes 2007 Supplement, section 296A.01, subdivision 8a, is
40.24amended to read:
40.25    Subd. 8a. Biodiesel fuel. "Biodiesel fuel" means a renewable, biodegradable, mono
40.26alkyl ester combustible liquid fuel derived from agricultural plant oils or animal fats
40.27and that meets American Society for Testing and Materials specification D6751-07 for
40.28Biodiesel Fuel (B100) Blend Stock for Distillate Fuels has the meaning given in section
40.29239.77, subdivision 1.

40.30    Sec. 4. PROPOSAL; PETROLEUM INSPECTION FEE REVENUE.
40.31    The commissioners of finance, commerce, and pollution control must develop and
40.32submit to the legislature as part of their next biennial budget request a proposal for
40.33eliminating, to the extent feasible, redundant fuel inspections and dedicating, to the extent
40.34feasible, all revenue from the petroleum inspection fee levied on petroleum products under
41.1Minnesota Statutes, section 239.101, subdivision 3, to the Weights and Measures Division
41.2of the Department of Commerce. All additional funding appropriated to the Weights and
41.3Measures Division under this proposal must be used for increased and enhanced fuel
41.4quality assurance enforcement activities and equipment and for educational activities
41.5focused on the handling, distribution, and use of biodiesel fuel.

41.6    Sec. 5. BIO-BASED DIESEL ALTERNATIVES.
41.7    (a) By January 1, 2011, the commissioners of agriculture, commerce, and pollution
41.8control shall jointly review the technology, economics, and operational characteristics
41.9associated with bio-based diesel alternatives and shall make recommendations concerning
41.10their use in Minnesota to the governor and the chairs of the house of representatives and
41.11senate committees with jurisdiction over agriculture and energy finance.
41.12    (b) For the purposes of this section, "bio-based diesel alternatives" means
41.13alternatives to petroleum diesel fuel that are warrantied for use in a standard diesel engine
41.14without modification and derived from a biological resource.

41.15    Sec. 6. TECHNICAL COLD WEATHER ISSUES.
41.16    The commissioners of agriculture and commerce shall convene technical
41.17stakeholders who are experts in cold weather biodiesel and petroleum diesel issues to
41.18consider and make recommendations regarding improvements in the production, blending,
41.19handling, and distribution of biodiesel blends to further ensure the performance of these
41.20fuels in cold weather. The commissioners shall issue a report on these issues by January
41.2115, 2009, to the chairs of the house of representatives and senate committees with
41.22jurisdiction over agriculture and commerce policy and finance.

41.23ARTICLE 3
41.24VETERANS AFFAIRS POLICY

41.25    Section 1. Minnesota Statutes 2006, section 196.021, is amended to read:
41.26196.021 DEPUTY COMMISSIONERS; DUTIES.
41.27    Subdivision 1. Appointment. The commissioner shall appoint a deputy
41.28commissioner for veteran services as provided in subdivision 2, and the board of directors
41.29of the Minnesota Veterans Homes may appoint a deputy commissioner for veteran health
41.30care as provided in section 198.004. Both deputy commissioners serve in the unclassified
41.31service, the deputy for veteran services at the pleasure of the commissioner and the deputy
41.32for veteran health care at the pleasure of the board. Both deputies shall must be residents
41.33of Minnesota, citizens of the United States, and veterans as defined in section 197.447.
42.1    Subd. 2. Deputy for veteran services; Powers and duties. The deputy
42.2commissioner for veteran services has and the deputy commissioner for veteran health
42.3care have those powers delegated by the commissioner that have not otherwise been
42.4delegated to the deputy commissioner for veteran health care by the commissioner or
42.5assigned to that deputy commissioner by law. A delegation must be in writing, signed
42.6by the commissioner, and filed with the secretary of state.

42.7    Sec. 2. Minnesota Statutes 2006, section 196.03, is amended to read:
42.8196.03 OFFICERS AND EMPLOYEES.
42.9    Except as provided in chapter 198, All officers and employees of the department
42.10shall be appointed by the commissioner and they shall perform such duties as may be
42.11assigned to them by the commissioner.

42.12    Sec. 3. [196.30] VETERANS HEALTH CARE ADVISORY COUNCIL.
42.13    Subdivision 1. Creation. The Veterans Health Care Advisory Council is established
42.14to provide the Department of Veterans Affairs with advice and recommendations on
42.15providing veterans with quality long-term care and the anticipated future needs of
42.16Minnesota veterans.
42.17    Subd. 2. Membership. (a) The council consists of nine public members appointed
42.18by the governor. The council members are:
42.19    (1) seven members with extensive expertise in health care delivery, long-term care,
42.20and veterans services;
42.21    (2) one licensed clinician who may be either a physician, physician's assistant, or
42.22a nurse practitioner; and
42.23    (3) one additional member.
42.24    (b) The governor shall designate a member to serve as the chair.
42.25    (c) The commissioner of veterans affairs, or the commissioner's designee, is an ex
42.26officio member of the council and shall provide necessary and appropriate administrative
42.27and technical support to the council.
42.28    (d) Membership terms, removal of members, and the filling of vacancies are as
42.29provided in section 15.059, subdivisions 2 and 4. Members shall not receive compensation
42.30or per diem payments, but may receive reimbursement for expenses pursuant to section
42.3115.059, subdivision 3.
42.32    Subd. 3. Duties. The council is an advisory group with the responsibility of
42.33providing the commissioner of veterans affairs with information and professional expertise
42.34on the delivery of quality long-term care to veterans. The council's duties include:
43.1    (1) developing a new vision and strategic plan for the veterans homes that
43.2complements the Department of Veterans Affairs overall veterans service programs;
43.3    (2) providing recommendations and advice on matters including clinical
43.4performance, systemwide quality improvement efforts, culture and working environment
43.5of the veterans homes, and other operational and organizational functions of the veterans
43.6homes;
43.7    (3) studying and reviewing current issues and trends in the long-term care industry
43.8and the veterans community;
43.9    (4) providing recommendations to the commissioner on alternative options for the
43.10delivery of long-term care to veterans so that veterans and their families can determine
43.11appropriate services under models similar to those available in the community;
43.12    (5) establishing, as appropriate, subcommittees or ad hoc task forces of council
43.13members, stakeholders, and other individuals with expertise or experience to address
43.14specific issues; and
43.15    (6) reviewing and providing advice on any other matter at the request of the
43.16commissioner.
43.17    Subd. 4. Continuation. To ensure continued accountability and the active
43.18involvement of healthcare experts and stakeholders in the governance structure of the
43.19veterans homes, the governor may appoint a panel of experts to review the continuing
43.20effectiveness of the council. The commissioner may disband the council at any time.

43.21    Sec. 4. Minnesota Statutes 2006, section 197.236, is amended to read:
43.22197.236 VETERANS CEMETERY STATE VETERANS CEMETERIES.
43.23    Subd. 3. Operation and maintenance. The commissioner of veterans affairs shall
43.24supervise and control the veterans cemetery cemeteries established under this section. The
43.25cemeteries are to be maintained and operated in accordance with the operational standards
43.26and measures of the National Cemetery Administration. The commissioner may contract
43.27for the maintenance and operation of the cemetery cemeteries. All personnel, equipment,
43.28and support necessary for maintenance and operation of the cemetery cemeteries must be
43.29included in the department's budget.
43.30    Subd. 5. Rules. The commissioner of veterans affairs may adopt rules regarding the
43.31operation of the cemetery cemeteries. If practicable, The commissioner shall require that
43.32upright granite markers supplied by the United States Department of Veterans Affairs be
43.33used to mark all gravesites.
43.34    Subd. 6. Permanent development and maintenance account. A veterans
43.35cemetery development and maintenance account is established in the special revenue
44.1fund of the state treasury. Receipts for burial fees, earnings from the veterans cemetery
44.2trust account plot or interment allowance claims, designated appropriations, and any
44.3other cemetery receipts must be deposited into this account. The money in the account,
44.4including interest earned, is appropriated to the commissioner to be used for the
44.5development, operation, maintenance, and improvement of the cemetery cemeteries.
44.6To the extent practicable, the commissioner of veterans affairs must apply for available
44.7federal grants for the development and operation of the cemetery to establish, expand, or
44.8improve the cemeteries.
44.9    Subd. 7. Permanent trust account. A veterans cemetery trust account is
44.10established in the special revenue fund of the state treasury. All designated appropriations
44.11and monetary donations to the cemetery must be placed in this account. The principal of
44.12this account must be invested by the State Board of Investment and may not be spent. The
44.13income from this account must be transferred as directed by the account manager to the
44.14veterans cemetery development and maintenance account.
44.15    Subd. 8. Eligibility. Any person who is eligible for burial in a national veterans
44.16cemetery is eligible for burial in the State Veterans Cemetery Cemeteries must be operated
44.17solely for the burial of service members who die on active duty, eligible veterans, and
44.18their spouses and dependent children, as defined in United States Code, title 38, section
44.19101, paragraph (2).
44.20    Subd. 9. Burial fees. The commissioner of veterans affairs shall establish a fee
44.21schedule, which may be adjusted from time to time, for the interment of eligible family
44.22members spouses and dependent children. The fees shall cover as nearly as practicable
44.23the actual costs of interment, excluding the value of the plot. The department may accept
44.24the Social Security burial allowance, if any, of the eligible family members in an amount
44.25not to exceed the actual cost of the interment. The commissioner may waive the fee
44.26in the case of an indigent eligible person.
44.27    No plot or interment fees may be charged for the burial of eligible veterans, members
44.28of the National Guard, or military reservists, except that funds available from the Social
44.29Security or veterans burial allowances, if any, must be paid to the commissioner in an
44.30amount not to exceed the actual cost of the interment, excluding the value of the plot
44.31service members who die on active duty or eligible veterans, as defined in United States
44.32Code, title 38, section 101, paragraph (2).
44.33    Prior to the interment of an eligible person, the commissioner shall request the
44.34cooperation of the eligible person's next of kin in applying to the appropriate federal
44.35agencies for payment to the cemetery of any allowable interment allowance.
45.1    Subd. 10. Allocation of plots. A person, or survivor of a person, eligible for
45.2interment in the State Veterans Cemetery may apply for a burial plot for the eligible
45.3person by submitting a request to the commissioner of veterans affairs on a form supplied
45.4by the department. The department shall allot plots on a first-come, first-served basis. To
45.5the extent that it is practical, plots must be allocated in a manner permitting the burial of
45.6eligible family members above, below, or adjacent to the eligible veteran, member of
45.7the National Guard, or military reservist.
45.8    Subd. 11. Plot allowance claims. The commissioner of veterans affairs must apply
45.9to the Veterans Benefits Administration for a plot or interment allowance payable to the
45.10state for expenses incurred by the state in the burial of eligible veterans in cemeteries
45.11owned and operated by the state if the burial is performed at no cost to the veteran's
45.12next of kin.
45.13    Subd. 12. No staff. No staff may be hired for or allocated to any new veterans
45.14cemetery without explicit legislative approval.

45.15    Sec. 5. Minnesota Statutes 2007 Supplement, section 197.791, subdivision 1, is
45.16amended to read:
45.17    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
45.18section.
45.19    (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise
45.20specified.
45.21    (c) "Cost of attendance" for both graduate and undergraduate students has the
45.22meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.1 1.2. The
45.23"Cost of attendance" for graduate students has the meaning given in section 136A.121,
45.24subdivision 6, multiplied by a factor of 1.2, using the tuition and fee maximum established
45.25by law for four-year programs shall be used to calculate the tuition and fee maximum
45.26under section 136A.121, subdivision 6, for a graduate student.
45.27    (d) "Child" means a natural or adopted child of a person described in subdivision 4,
45.28paragraph (a), clause (1), item (i) or (ii).
45.29    (e) "Eligible institution" means a postsecondary institution under section 136A.101,
45.30subdivision 4, or a graduate school licensed or registered with the state of Minnesota
45.31serving only graduate students.
45.32    (f) "Program" means the Minnesota GI Bill program established in this section,
45.33unless otherwise specified.
45.34    (g) "Time of hostilities" means any action by the armed forces of the United States
45.35that is recognized by the issuance of a presidential proclamation or a presidential executive
46.1order in which the armed forces expeditionary medal or other campaign service medals
46.2are awarded according to presidential executive order, and any additional period or place
46.3that the commissioner determines and designates, after consultation with the United States
46.4Department of Defense, to be a period or place where the United States is in a conflict that
46.5places persons at such a risk that service in a foreign country during that period or in that
46.6place should be considered to be included.
46.7    (h) "Veteran" has the meaning given in section 197.447. Veteran also includes
46.8a service member who has received an honorable discharge after leaving each period of
46.9federal active duty service and has:
46.10    (1) served 90 days or more of federal active duty in a foreign country during a time
46.11of hostilities in that country or been awarded one or more of the following medals:
46.12    (i) Armed Forces Expeditionary Medal;
46.13    (ii) Kosovo Campaign Medal;
46.14    (iii) Afghanistan Campaign Medal;
46.15    (iv) Iraq Campaign Medal;
46.16    (v) Global War on Terrorism Expeditionary Medal; or
46.17    (vi) other campaign medals authorized for service after September 11, 2001; or
46.18    (2) received a service-related medical discharge from any period of service in a
46.19foreign country during a time of hostilities in that country.
46.20A service member who has fulfilled the requirements for being a veteran under this
46.21paragraph but is still serving actively in the United States armed forces is also a veteran
46.22for the purposes of this section.

46.23    Sec. 6. Minnesota Statutes 2007 Supplement, section 197.791, subdivision 4, is
46.24amended to read:
46.25    Subd. 4. Eligibility. (a) A person is eligible for educational assistance under this
46.26section if:
46.27    (1) the person is:
46.28    (i) a veteran who is serving or has served honorably in any branch or unit of the
46.29United States armed forces at any time on or after September 11, 2001;
46.30    (ii) a nonveteran who has served honorably for a total of five years or more
46.31cumulatively as a member of the Minnesota National Guard or any other active or reserve
46.32component of the United States armed forces, and any part of that service occurred on or
46.33after September 11, 2001;
47.1    (iii) the surviving spouse or child of a person who has served in the military at any
47.2time on or after September 11, 2001, and who has died as a direct result of that military
47.3service; or
47.4    (iv) the spouse or child of a person who has served in the military at any time on or
47.5after September 11, 2001, and who has a total and permanent service-connected disability
47.6as rated by the United States Veterans Administration;
47.7    (2) the person providing the military service described in clause (1), items (i) to (iv),
47.8was a Minnesota resident within six months of the time of the person's initial enlistment or
47.9any reenlistment in the United States armed forces;
47.10    (3) (2) the person receiving the educational assistance is a Minnesota resident, as
47.11defined in section 136A.101, subdivision 8; and
47.12    (4) (3) the person receiving the educational assistance:
47.13    (i) is an undergraduate or graduate student at an eligible institution;
47.14    (ii) is maintaining satisfactory academic progress as defined by the institution for
47.15students participating in federal Title IV programs;
47.16    (iii) is enrolled in an education program leading to a certificate, diploma, or degree
47.17at an eligible institution;
47.18    (iv) has applied for educational assistance under this section prior to the end of the
47.19academic term for which the assistance is being requested;
47.20    (v) is in compliance with child support payment requirements under section
47.21136A.121, subdivision 2 , clause (5); and
47.22    (vi) if an undergraduate student, has applied for the federal Pell Grant and the
47.23Minnesota State Grant has completed the Free Application for Federal Student Aid
47.24(FAFSA).
47.25    (b) A person's eligibility terminates when the person becomes eligible for benefits
47.26under section 135A.52.
47.27    (c) To determine eligibility, the commissioner may require official documentation,
47.28including the person's federal form DD-214 or other official military discharge papers;
47.29correspondence from the United States Veterans Administration; birth certificate; marriage
47.30certificate; proof of enrollment at an eligible institution; signed affidavits; proof of
47.31residency; proof of identity; or any other official documentation the commissioner
47.32considers necessary to determine eligibility.
47.33    (d) The commissioner may deny eligibility or terminate benefits under this section
47.34to any person who has not provided sufficient documentation to determine eligibility for
47.35the program. An applicant may appeal the commissioner's eligibility determination or
47.36termination of benefits in writing to the commissioner at any time. The commissioner
48.1must rule on any application or appeal within 30 days of receipt of all documentation that
48.2the commissioner requires. The decision of the commissioner regarding an appeal is final.
48.3However, an applicant whose appeal of an eligibility determination has been rejected by
48.4the commissioner may submit an additional appeal of that determination in writing to the
48.5commissioner at any time that the applicant is able to provide substantively significant
48.6additional information regarding the applicant's eligibility for the program. An approval
48.7of an applicant's eligibility by the commissioner following an appeal by the applicant is
48.8not retroactively effective for more than one year or the semester of the person's original
48.9application, whichever is later.
48.10    (e) Upon receiving an application with insufficient documentation to determine
48.11eligibility, the commissioner must notify the applicant within 30 days of receipt of the
48.12application that the application is being suspended pending receipt by the commissioner of
48.13sufficient documentation from the applicant to determine eligibility.

48.14    Sec. 7. Minnesota Statutes 2007 Supplement, section 197.791, subdivision 5, is
48.15amended to read:
48.16    Subd. 5. Benefit amount. (a) On approval by the commissioner of eligibility for
48.17the program, the applicant shall be awarded, on a funds-available basis, the educational
48.18assistance under the program for use at any time according to program rules at any
48.19eligible institution.
48.20    (b) The amount of educational assistance in any semester or term for an eligible
48.21person must be determined by subtracting from the eligible person's cost of attendance the
48.22amount the person received or was eligible to receive in that semester or term from:
48.23    (1) the federal Pell Grant;
48.24    (2) the state grant program under section 136A.121; and
48.25    (3) any federal military or veterans educational benefits including but not limited
48.26to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program,
48.27vocational rehabilitation benefits, and any other federal benefits associated with the
48.28person's status as a veteran, except veterans disability payments from the United States
48.29Veterans Administration.
48.30    (c) The amount of educational assistance for any eligible person who is a full-time
48.31student must not exceed the following:
48.32    (1) $1,000 per semester or term of enrollment;
48.33    (2) $2,000 $3,000 per state fiscal year; and
48.34    (3) $10,000 in a lifetime.
49.1For a part-time student, the amount of educational assistance must not exceed $500
49.2per semester or term of enrollment. For the purpose of this paragraph, a part-time
49.3undergraduate student is a student taking fewer than 12 credits for a semester or term of
49.4enrollment and a part-time graduate student is a student considered part time by the eligible
49.5institution the graduate student is attending. The minimum award for undergraduate and
49.6graduate students is $50 per term.

49.7    Sec. 8. Minnesota Statutes 2006, section 198.32, subdivision 1, is amended to read:
49.8    Subdivision 1. Resident's rights. A resident of a Minnesota veterans home has the
49.9right to complain and otherwise exercise freedom of expression and assembly which is
49.10guaranteed by amendment I of the United States Constitution. The administrator of the
49.11home shall inform each resident in writing at the time of admission of the right to complain
49.12to the administrator about home accommodations and services. A notice of the right to
49.13complain shall be posted in the home. The administrator shall also inform each resident of
49.14the right to complain to the board or to the commissioner of veterans affairs. Each resident
49.15of a home shall be encouraged and assisted, throughout the period of stay in the home, to
49.16understand and exercise the rights of freedom of expression and assembly as a resident
49.17and as a citizen, and, to this end, the resident may voice grievances and recommend
49.18changes in policies and services to home staff, other residents, and outside representatives
49.19of the resident's choice, free from restraint, interference, coercion, discrimination, or
49.20reprisal, including retaliatory eviction.

49.21    Sec. 9. Minnesota Statutes 2006, section 609.115, is amended by adding a subdivision
49.22to read:
49.23    Subd. 10. Veterans mental health status. (a) When a defendant is convicted of a
49.24crime, the court shall inquire whether the defendant is currently serving in or is a veteran
49.25of the armed forces of the United States.
49.26    (b) If the defendant is currently serving in the military or is a veteran and has been
49.27diagnosed by a qualified psychiatrist or clinical psychologist or physician with a mental
49.28illness, the court may:
49.29    (1) order that the officer preparing the report under subdivision 1 consult with the
49.30United States Department of Veterans Affairs, Minnesota Department of Veterans Affairs,
49.31or another agency or person with suitable knowledge or experience, for the purpose
49.32of providing the court with information regarding treatment options available to the
49.33defendant including federal, state, and local programming; and
50.1    (2) consider the treatment recommendations of any diagnosing or treating mental
50.2health professionals together with the treatment options available to the defendant in
50.3imposing sentence.

50.4    Sec. 10. RULES TRANSFER.
50.5    Minnesota Rules, chapter 9050, is transferred from the Veterans Homes Board of
50.6Directors to the commissioner of veterans affairs. The commissioner shall administer and
50.7enforce those rules and may amend or repeal them.

50.8    Sec. 11. APPOINTMENTS.
50.9    Notwithstanding Minnesota Statutes, section 196.30, subdivision 2, paragraph (d),
50.10the governor may make the initial appointments to the Veterans Health Care Advisory
50.11Council under Executive Order 07-20 without complying with the appointment process in
50.12Minnesota Statutes, section 15.0597.

50.13    Sec. 12. PARTNERING IN DELIVERY OF VETERANS SERVICES.
50.14    The commissioner must seek input from a broad range of experienced
50.15nongovernmental social service and health care providers, including both secular and
50.16faith-based service organizations, from throughout the state regarding the feasibility of
50.17public-private collaboration in providing services to Minnesota Veterans. The services
50.18may include home health care, psychological counseling, life-skills rehabilitation
50.19counseling, home hospice care, respite care, and other types of home-based health
50.20care as judged necessary by the commissioner to enable veterans to recover from
50.21service-connected injuries, illnesses, and disabilities. The commissioner must report to
50.22the legislature by January 15, 2009 on its findings and recommendations for establishing
50.23such service-delivery partnerships.

50.24    Sec. 13. VETERANS HOMES STRATEGIC PLANNING GROUP.
50.25    Subdivision 1. Creation. An intergovernmental and veterans study group shall be
50.26appointed for the purpose of conducting strategic planning for existing and future state
50.27veterans homes, including in-depth strategic planning for the Minneapolis veterans home.
50.28This group is designated the "Veterans Homes Strategic Planning Group." The Veterans
50.29Homes Strategic Planning Group shall consist of the following 17 members:
50.30    (1) three senators, including two members of the majority party and one member
50.31of the minority party, at least one whom represents a Minneapolis legislative district
50.32and one of whom represents a greater-Minnesota legislative district, appointed by the
50.33Subcommittee on Committees of the Committee on Rules and Administration of the
50.34senate;
51.1    (2) three members of the house of representatives, including two members of the
51.2majority party and one member of the minority party, at least one of whom represents
51.3a Minneapolis legislative district and one of whom represents a greater-Minnesota
51.4legislative district, appointed by the speaker of the house;
51.5    (3) the commissioner and two deputy commissioners of the Minnesota Department
51.6of Veterans Affairs (MDVA), or the commissioner's designees;
51.7    (4) the president and legislative chair person of the Minnesota Association of County
51.8Veteran Service Officers (CVSOs), or the president's designees;
51.9    (5) the chairperson of the Commanders Task Force of Minnesota's
51.10congressionally-chartered veterans service organizations, or the chairperson's designee;
51.11    (6) the mayor of Minneapolis, or the mayor's designee, and one Minneapolis city
51.12planner designated by the mayor;
51.13    (7) the chairperson of the Twin Cities Metropolitan Council, or the chairperson's
51.14designee;
51.15    (8) one person from the Minnesota Inter-County Association (MICA), as designated
51.16by the association board; and
51.17    (9) one person from the Association of Minnesota Counties (AMC), as designated
51.18by the Association board.
51.19    Subd. 2. Duties. (a) The Veterans Homes Strategic Planning Group must meet
51.20periodically to conduct strategic planning for the state veterans homes, both existing and
51.21future, and with special focus on the current Minnesota veterans home in Minneapolis.
51.22The planning process must encompass a 25-year future time span, and must include:
51.23    (1) current and projected figures for the number of Minnesota veterans within broad
51.24age categories, by gender and geographic region of the state;
51.25    (2) current and projected needs of Minnesota veterans for skilled nursing care,
51.26domiciliary care and outpatient services, as being currently provided by the state veterans
51.27homes, and as may be needed in the future;
51.28    (3) current and projected capital expenditure, plant maintenance and operational
51.29costs for each existing Minnesota veterans home, both per-facility and per-veteran-served,
51.30with discussion of factors determining cost differences among the homes;
51.31    (4) identification and discussion of the feasibility of alternative methods for meeting
51.32at least some of the various future needs of veterans, including:
51.33    (i) the possibility of partnering for home-based services for veterans with
51.34non-governmental nonprofit and/or faith-based social service and healthcare delivery
51.35organizations, as a means of reducing some of the future needs of veterans for domiciliary
51.36or skilled nursing care in veterans homes;
52.1    (ii) reliance on private, veterans-only nursing homes for handling part or all of the
52.2future growth in veterans skilled nursing or domiciliary needs, possibly supplemented by
52.3some state-provided veterans services not currently available in private nursing homes; or
52.4    (iii) any other feasible alternative service delivery methods;
52.5    (5) current and projected capital expenditure, plant maintenance and operational
52.6costs for meeting future veterans needs under:
52.7    (i) the veterans-homes-only model; and
52.8    (ii) the combined veterans-homes and home-based partnering model (or any other
52.9feasible service delivery model that the group identifies); and
52.10    (6) discussion and recommendations regarding:
52.11    (i) the types and levels of veterans home care judged feasible for the state to attempt
52.12to provide in the near-term and long-term future; and
52.13    (ii) the optimal locations and timing for construction of any future state veterans
52.14homes and/or other service delivery facilities in Minnesota.
52.15    (b) In addition to the duties described in paragraph (a), the veterans homes
52.16strategic planning group must provide specific addition analysis of the projected capital,
52.17maintenance, and operating costs of the current Minnesota veterans home in Minneapolis,
52.18and must assess the feasibility of alternative operational models at that home or at locations
52.19within the seven county metropolitan area. Discussion must include the feasibility, and
52.20estimation of any cost-savings from the razing or remodeling and converting of some of the
52.21infrastructure of the current campus for alternative uses and other pertinent items, such as:
52.22    (i) construction of rental housing for veterans and/or family members of veterans
52.23receiving medical care at the nearby US/VA Medical Center or other nearby medical
52.24institutions;
52.25    (ii) conducting a land use study including a highest and best use analysis for the
52.26existing site and all improvements;
52.27    (iii) investigating opportunities for public/private partnerships in strategic land
52.28use; and
52.29    (iv) any other purpose judged feasible by the strategic planning group.
52.30    Subd. 3. Report required. (a) By January 15, 2009, the strategic planning
52.31group must report its proposed recommendations to the chairs of the senate and house
52.32committees with jurisdiction over veterans affairs, state governmental operations, and
52.33local government affairs. The strategic planning group may suggest draft legislation for
52.34legislative consideration.
53.1    (b) The strategic planning group may continue its strategic planning activities and
53.2by January 15, 2010 may issue a second report to the same legislative chairs, containing
53.3follow-up recommendations for legislative consideration.
53.4    Subd. 4. Administrative provisions. (a) The commissioner of veterans affairs, or
53.5the commissioner's designee, must convene the initial meeting of the Veterans Homes
53.6Strategic Planning Group. Upon request of the strategic planning group, the commissioner
53.7must provide meeting space and administrative services for the group. The members of
53.8the strategic planning group must elect a chair or co-chairs from the legislative members
53.9of the group at the initial meeting. Each subsequent meeting of the group is at the call
53.10of the chair or co-chairs.
53.11    (b) Public members of the strategic planning group serve without special
53.12compensation or special payment of expenses from the group.
53.13    (c) The strategic planning group expires on June 30, 2010, unless an extension is
53.14authorized by law by that date.
53.15    Subd. 5. Deadline for appointments and designations. The appointments and
53.16designations authorized by this section must be completed by August 1, 2008. The
53.17strategic planning group must convene its initial meeting no later than September 1, 2008.
53.18EFFECTIVE DATE.This section is effective the day following final enactment

53.19    Sec. 14. COUNTY VETERANS SERVICES WORKING GROUP.
53.20    Subdivision 1. Creation. The County Veteran Services Working Group shall consist
53.21of the following 13 members:
53.22    (1) two senators, including one member from the majority party and one member
53.23from the minority party, appointed by the Subcommittee on Committees of the Committee
53.24on Rules and Administration of the senate;
53.25    (2) two members of the house of representatives, one member from the majority
53.26party and one member from the minority party, appointed by the speaker of the house;
53.27    (3) the commissioner and two deputy commissioners of the Minnesota Department
53.28of Veterans Affairs (MDVA), or the commissioner's designees;
53.29    (4) the president, vice president, and legislative chair person of the Minnesota
53.30Association of County Veteran Service Officers (CVSOs);
53.31    (5) the chairperson of the Commanders Task Force of Minnesota's
53.32congressionally-chartered veterans service organizations, or the chairperson's designee;
53.33    (6) one person from the Minnesota Inter-County Association (MICA), as designated
53.34by the association board; and
54.1    (7) one person from the Association of Minnesota Counties (AMC), as designated
54.2by the association board.
54.3    Subd. 2. Duties. The working group must meet periodically to review the findings
54.4and recommendations of the 2008 report of the Office of the Legislative Auditor (OLA)
54.5on Minnesota's county veterans service offices, and make written recommendations to the
54.6legislature regarding whether and how each of that report's recommendations should be
54.7implemented. The working group may also provide additional recommendations on how
54.8to enhance the current services provided by the county veteran service offices.
54.9    The working group may suggest draft legislation for legislative consideration. By
54.10January 15, 2009, the working group must report its proposed recommendations to the
54.11chairs of the senate and house committees with jurisdiction over veterans affairs, state
54.12governmental operations, and local government affairs.
54.13    Subd. 3. Administrative provisions. (a) The commissioner of veterans affairs, or
54.14the commissioner's designee, must convene the initial meeting of the working group.
54.15Upon request of the working group, the commissioner must provide meeting space and
54.16administrative services for the group. The members of the working group must elect a
54.17chair or co-chairs from the legislative members of the working group at the initial meeting.
54.18Each subsequent meeting is at the call of the chair or co-chairs.
54.19    (b) Public members of the working group serve without special compensation or
54.20special payment of expenses from the working group.
54.21    (c) The working group expires on June 30, 2009, unless an extension is authorized
54.22by law by that date.
54.23    Subd. 4. Deadline for appointments and designations. The appointments and
54.24designations authorized by this section must be completed by August 1, 2008. The
54.25working group must convene its initial meeting no later than September 1, 2008.
54.26EFFECTIVE DATE.This section is effective the day following final enactment.

54.27    Sec. 15. REVISOR'S INSTRUCTION.
54.28    (a) The revisor shall change "board," "board of directors," or "Veterans Homes
54.29Board of Directors" to "commissioner" wherever it is used in Minnesota Statutes, sections
54.30198.003; 198.005; 198.006; 198.007; 198.022; 198.03; 198.05; 198.065; 198.066; 198.16;
54.31198.23; 198.261; 198.265; 198.266; 198.31; 198.33; 198.34; 198.35; 198.36; and 198.37;
54.32and shall change "board rules" to "rules adopted under this chapter" wherever it appears in
54.33Minnesota Statutes, sections 198.007 and 198.022.
54.34    (b) In Minnesota Rules, chapter 9050, the revisor shall:
55.1    (1) change the terms "executive director," "executive director of the board,"
55.2"executive director of the Veterans Homes Board," "Minnesota Veterans Homes Board,"
55.3and "board" to "commissioner of veterans affairs" except where the term "board" is used
55.4with a different meaning in part 9050.0040, subpart 16;
55.5    (2) change the term "board-operated facility" to "facility operated by the
55.6commissioner of veterans affairs" and change the term "non-board-operated facility" to
55.7"facility not operated by the commissioner of veterans affairs";
55.8    (3) change the term "board-approved" to "approved by the commissioner of veterans
55.9affairs"; and
55.10    (4) eliminate the term "board" where it is used in the third paragraph of part
55.119050.1070, subpart 9.
55.12    (c) The revisor shall change any of the terms in paragraph (a) or (b) to "commissioner
55.13of veterans affairs" if they are used to refer to the Veterans Homes Board of Directors or
55.14its executive director anywhere else in Minnesota Statutes or Minnesota Rules.

55.15    Sec. 16. REPEALER.
55.16Minnesota Statutes 2006, sections 198.001, subdivisions 6 and 9; 198.002,
55.17subdivisions 1, 3, and 6; 198.003, subdivisions 5 and 6; and 198.004, subdivision 2, and
55.18Minnesota Statutes 2007 Supplement, sections 198.002, subdivision 2; and 198.004,
55.19subdivision 1, are repealed.
55.20(b) Minnesota Rules, part 9050.0040, subpart 15, is repealed."
55.21Amend the title accordingly