Subd. 1. Establishment.

The Minnesota "Support Our Troops" account is established in the special revenue fund. The account shall consist of contributions from private sources and appropriations.

Subd. 2. Uses.

1. (a) Money appropriated from the Minnesota "Support Our Troops" account may be used for:

   1. (1) grants directly to eligible individuals;
   2. (2) grants to one or more eligible foundations for the purpose of making grants to eligible individuals, as provided in this section; or
   3. (3) veterans' services.

2. (b) The term, "eligible individual" includes any person who is:

   1. (1) a member of the Minnesota National Guard or a reserve unit based in Minnesota who has been called to active service as defined in section 190.05, subdivision 5;
   2. (2) a Minnesota resident who is a member of a military reserve unit not based in Minnesota, if the member is called to active service as defined in section 190.05, subdivision 5;
   3. (3) any other Minnesota resident performing active service for any branch of the military of the United States; and
   4. (4) members of the immediate family of an individual identified in clause (1), (2), or (3). For purposes of this clause, "immediate family" means the individual's spouse and minor children and, if they are dependents of the member of the military, the member's parents, grandparents, siblings, stepchildren, and adult children.

3. (c) The term "eligible foundation" includes any organization that:

   1. (1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code;
   2. (2) has articles of incorporation under chapter 317A specifying the purpose of the organization as including the provision of financial assistance to members of the Minnesota National Guard and other United States armed forces reserves and their families and survivors; and
   3. (3) agrees in writing to distribute any grant money received from the adjutant general under this section to eligible individuals as defined in this section and in accordance with any written policies and rules the adjutant general may impose as conditions of the grant to the foundation.
4. (d) The maximum grant awarded to an eligible individual in a calendar year with funds from the Minnesota "Support Our Troops" account, either through an eligible institution or directly from the adjutant general, may not exceed $2,000.

Subd. 3. Annual report.

The adjutant general must report by February 1, 2007, and each year thereafter, to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over military and veterans' affairs on the number, amounts, and use of grants made by the adjutant general from the Minnesota "Support Our Troops" account in the previous year.