Dean Cholick informed the committee of the new animal research wing at South Dakota State University which cost $5,700,000. This facility houses animals within federal guidelines.

Dean Cholick said that the agri-security will be a FY2003 high priority. This will include research and teaching at the land grant colleges such as South Dakota State University. He told the committee that food production will be a high concern which will include: security of facilities, establishing a secure data base system to track bio-terrorism, developing techniques of bio-terrorism, and educating the next generation.

Dean Cholick presented information about the percentage of students who graduate from the College of Agriculture and Biological Sciences who remain in South Dakota. He said that 57.5 percent of the students are employed in South Dakota, 32.8 percent are placed regionally (5 border states), 9.6 are placed outside the region, and 19.8 percent are unaccountable.

Mr. Kevin Kephart, Director, Agricultural Experiment Station, presented information on the Sun Grant Initiative, rural-based industries providing energy security (Document #1). He reminded the group of the problem coming from Washington in that we are dependent on petroleum imports. Senator Daschle asked if the land grant universities could do something about this petroleum dependence. The Sun Grant Initiative will seek to broaden agriculture production and displace petroleum. Mr. Kephart said that the Sun Grant Initiative is a national network of land-grant universities and U.S. Department of Energy laboratories partnering to build a biobased economy. The following are included in the network: South Dakota State University, Oregon State University, National Renwable Energy Laboratory (Colorado), Oklahoma State University, University of Tennessee (Knoxville), Cornell University, Oak Ridge National Laboratory (Tennessee). The goal is to get the Iowa State University and the Illinois communities to become involved in the initiative. Land-grant institutions would broaden their responsibilities beyond traditional agricultural issues. Sun Grant institutions would be charged with making significant advances in biobased industries for the benefit of America's independent farmers, rural communities, and the public at large.

Mr. Kephart told the committee that the university is proposing new majors in bio-based economy and new education programs will be developed.

Mr. Kephart referred to the mission of the Sun Grant Initiative which is through development, distribution, and implementation of biobased energy technologies: enhance America's energy security, promote diversification and environmental sustainability of America's agriculture, promote opportunities for economic diversification in America's rural communities. He said that in order for the Sun Grant Initiative to become a reality, Congress must act on it.

Mr. Kephart informed the committee about the use of FY2001 appropriated funds. One of the

projects was a food safety issue. A research project dealing with mouse chow diets fed to several generations of mice. There was no differences found in genetic formation or deformation using a genetically modified organism product. Another project was involved with gene flow research.
Representative Klaudt asked about the money appropriated for the projects. Mr. Kephart said that it was leveraged very well.

Mr. Larry Tidemann, Director, Cooperative Extension Service (Document #2) presented information to the committee. Mr. Tidemann talked about a classroom curriculum, Genes by Design, which was developed by classroom teachers attending South Dakota State University. The teachers took the curriculum back to the classroom where young people should be learning about genetically modified organisms (GMO).

Mr. Tidemann told the committee about new community project presentations made by Mr. Jim Satterlee, South Dakota State University. This project was included in FY2002 funding.

Mr. Tidemann said that the Cooperative Extension program has made a significant difference to agriculture, families, and the youth (4-H) in the state. A Sioux Falls Argus Leader article had listed the top twenty awards given in agriculture.. Out of the twenty awards given, eighty percent of the individuals had been working with agriculture extension. Plant science research and extension crop production demonstrations are conducted throughout the state. Another project deals with identity fraud. The Cooperative Extension is alerting the public of fraud and creating awareness. The CHARACTER COUNTS! program has become part of the extension. This program is a product of Michael Josephson of the Michael Josephson Institute. The Extension has researched the CHARACTER COUNTS! program implementation in the state. Some of the results of the surveys indicated that those students who said that they had lied on the previous survey showed a fifty percent positive change in the follow-up study. There are many examples of individuals who have been involved in 4-H projects who carry those skills into an employment opportunity.

Mr. Tidemann invited the committee to the campus this coming weekend for a celebration of 100 years for 4-H.

Representative Adelstein praised the CHARACTER COUNTS! program with which he has been involved in Rapid City. He asked if the Department of Education and Cultural Affairs had contacted the Cooperative Extension. Mr. Tidemann wasn't aware of that new program for Character Education.

Representative Burg praised South Dakota State University for taking the initiative to revitalize rural communities in South Dakota.

Representative Richter asked about what the commercial industries have done in the last twenty years. President Miller said that there is a difference between commercial research and university research. Dean Cholick said that South Dakota State University must partner with industry and work

together to better serve the people.

Representative Richter asked about the increase of FTE when the rural population being served is declining due to the farm and ranch decline and the decline of population. Dean Cholick responded that it is true that county extension is declining and there has been a reduction in FTE in the experiment station. The difference is in the need for specialization. Mr. Wes Tschetter, Assistant Vice President, Finance and Budget said that graduate assistants at the experiment station were a part of that increase in FTEs. The areas of growth are in grants.

Senator Kleven asked about the money for the Cooperative Extension eliminated in the FY2003 Governor's recommended budget. Mr. Tidemann said that this was money for the Satterlee's New Community Project Presentations which was a one-time funding. President Miller wondered if the Satterlee money would go back to the GMO research.

Representative Adelstein said that he made a trip to the campus of South Dakota State University, Brookings to visit Dean Cholick. He remarked that he was very stimulated while being informed of the great things that are happening in the College of Agriculture and Biological Sciences.