1. The agriculture diversification and development committee consists of eleven members, five of whom must be appointed by the commissioner for terms of two years each, arranged so that two terms expire in odd-numbered years and three terms expire in even-numbered years. a. Four of the members appointed by the commissioner must be actively engaged in farming in this state and the fifth member appointed by the commissioner must be actively engaged in agribusiness in this state. b. The governor shall appoint one member for a term of two years which expires in odd-numbered years. c. The member appointed by the governor must be actively engaged in business in this state. d. The remaining committee members must consist of: (1) One representative from the independent community banks of North Dakota; (2) One representative from the North Dakota bankers association; (3) The commissioner of commerce or the commissioner's designee; (4) The president of North Dakota state university or the president's designee; and (5) The agriculture commissioner or the commissioner's designee. e. The committee shall elect one of its members as chairman.

2. The agriculture diversification and development committee shall develop guidelines for the grants, including eligibility criteria and reporting requirements. The guidelines must include priority for businesses with a majority of the ownership comprised of North Dakota residents. The agriculture diversification and development committee shall review grant applications and make funding determinations. Members of the committee are entitled to be reimbursed for expenses incurred in the performance of their duties, in the same manner as other state officials are reimbursed, in accordance with sections 44-08-04 and 54-06-09. If not otherwise employed by the state of North Dakota, members of the committee are entitled to receive per diem compensation of one hundred thirty-five dollars for each day of attending meetings and performing other duties relating to official business of the committee.