NINETY-NINTH DAY. The Senate met at 10:00 a.m. and was called to order by the President. CALL OF THE SENATE

Transcription

1 99TH DAY] THURSDAY, MAY 17, NINETY-NINTH DAY The Senate met at 10:00 a.m. and was called to order by the President. CALL OF THE SENATE St. Paul, Minnesota, Thursday, May 17, 2018 Senator Gazelka imposed a call of the Senate. The Sergeant at Arms was instructed to bring in the absent members. Prayer was offered by the Chaplain, Rev. Judy Zabel. The members of the Senate gave the pledge of allegiance to the flag of the United States of America. The roll was called, and the following Senators answered to their names: Abeler Anderson, B. Anderson, P. Bakk Benson Bigham Carlson Chamberlain Champion Clausen Cohen Cwodzinski Dahms Dibble Draheim Dziedzic Eaton Eichorn Eken Fischbach Franzen Frentz Gazelka Goggin Hall Hawj Hayden Hoffman Housley Ingebrigtsen Isaacson Jasinski Jensen Johnson Kent Kiffmeyer Klein Koran Laine Lang Latz Limmer Little Lourey Marty Mathews Miller Nelson Newman Newton Osmek Pappas Pratt Relph Rest Rosen Ruud Senjem Simonson Sparks Tomassoni Torres Ray Utke Weber Westrom Wiger Wiklund The President declared a quorum present. The reading of the Journal was dispensed with and the Journal, as printed and corrected, was approved. RECESS Senator Gazelka moved that the Senate do now recess subject to the call of the President. The motion prevailed. After a brief recess, the President called the Senate to order.

2 9262 JOURNAL OF THE SENATE CALL OF THE SENATE [99TH DAY Senator Benson imposed a call of the Senate. The Sergeant at Arms was instructed to bring in the absent members. Madam President: MESSAGES FROM THE HOUSE I have the honor to announce the passage by the House of the following Senate Files, herewith returned: S.F. Nos. 327 and 893. Returned May 16, 2018 Madam President: Patrick D. Murphy, Chief Clerk, House of Representatives I have the honor to announce the passage by the House of the following Senate File, AS AMENDED by the House, in which amendments the concurrence of the Senate is respectfully requested: S.F. No. 3638: A bill for an act relating to public safety; fully incorporating snowmobiles, all-terrain vehicles, and motorboats in operation into the DWI law; amending Minnesota Statutes 2017 Supplement, sections 84.91, subdivision 1; 86B.331, subdivision 1; repealing Minnesota Statutes 2016, section 169A.33, subdivision 1; Minnesota Statutes 2017 Supplement, section 169A.07. Senate File No is herewith returned to the Senate. Returned May 16, 2018 Patrick D. Murphy, Chief Clerk, House of Representatives CONCURRENCE AND REPASSAGE Senator Koran moved that the Senate concur in the amendments by the House to S.F. No and that the bill be placed on its repassage as amended. The motion prevailed. S.F. No was read the third time, as amended by the House, and placed on its repassage. The question was taken on the repassage of the bill, as amended. The roll was called, and there were yeas 49 and nays 9, as follows: Those who voted in the affirmative were: Abeler Anderson, B. Anderson, P. Benson Bigham Chamberlain Clausen Cohen Cwodzinski Dahms Draheim Fischbach Frentz Gazelka Hall Hawj Housley Ingebrigtsen Isaacson Jasinski Jensen Johnson Kent Kiffmeyer Klein Koran Laine Lang Latz Limmer

3 99TH DAY] THURSDAY, MAY 17, Little Lourey Marty Mathews Miller Newman Newton Osmek Pappas Pratt Relph Rest Rosen Ruud Simonson Utke Weber Wiger Wiklund Those who voted in the negative were: Dibble Dziedzic Eaton Franzen Hayden Hoffman Sparks Tomassoni Torres Ray So the bill, as amended, was repassed and its title was agreed to. Madam President: MESSAGES FROM THE HOUSE - CONTINUED I have the honor to announce the passage by the House of the following Senate File, AS AMENDED by the House, in which amendments the concurrence of the Senate is respectfully requested: S.F. No. 2869: A bill for an act relating to transportation; eliminating a tariff filing requirement for certain motor carriers; amending Minnesota Statutes 2016, sections ; , subdivisions 1, 3; , subdivision 1; , subdivision 1, by adding a subdivision; , subdivision 1; repealing Minnesota Statutes 2016, section , subdivisions 2, 3, 4. Senate File No is herewith returned to the Senate. Returned May 16, 2018 Patrick D. Murphy, Chief Clerk, House of Representatives CONCURRENCE AND REPASSAGE Senator Koran moved that the Senate concur in the amendments by the House to S.F. No and that the bill be placed on its repassage as amended. The motion prevailed. S.F. No. 2869: A bill for an act relating to transportation; modifying tariff requirements for certain motor carriers; amending Minnesota Statutes 2016, sections ; , subdivisions 1, 3; , subdivision 1; , subdivision 1, by adding a subdivision; , subdivision 1; repealing Minnesota Statutes 2016, section , subdivisions 2, 3, 4. S.F. No was read the third time, as amended by the House, and placed on its repassage. The question was taken on the repassage of the bill, as amended. The roll was called, and there were yeas 58 and nays 1, as follows: Those who voted in the affirmative were: Abeler Anderson, B. Anderson, P. Benson Bigham Carlson Chamberlain Clausen Cohen Cwodzinski Dahms Dibble Draheim Dziedzic Eaton Fischbach Franzen Frentz Gazelka Hall

4 9264 JOURNAL OF THE SENATE [99TH DAY Hawj Hoffman Housley Ingebrigtsen Isaacson Jasinski Jensen Johnson Kent Kiffmeyer Klein Koran Laine Lang Latz Limmer Little Lourey Marty Mathews Miller Newman Newton Osmek Pappas Pratt Relph Rest Rosen Ruud Simonson Sparks Tomassoni Torres Ray Utke Weber Wiger Wiklund Hayden Those who voted in the negative were: So the bill, as amended, was repassed and its title was agreed to. Madam President: MESSAGES FROM THE HOUSE - CONTINUED I have the honor to announce that the House has acceded to the request of the Senate for the appointment of a Conference Committee, consisting of 3 members of the House, on the amendments adopted by the House to the following Senate File: S.F. No. 3310: A bill for an act relating to human services; modifying provisions relating to child care licensing; amending Minnesota Statutes 2016, sections 245A.04, subdivision 9; 245A.05; 245A.06, subdivision 1; 245A.14, by adding a subdivision; 245A.152; Minnesota Statutes 2017 Supplement, sections 245A.07, subdivision 3; 245A There has been appointed as such committee on the part of the House: Peterson, Franson and Quam. Senate File No is herewith returned to the Senate. Returned May 16, 2018 Madam President: Patrick D. Murphy, Chief Clerk, House of Representatives I have the honor to announce the passage by the House of the following House Files, herewith transmitted: H.F. Nos. 3202, 3610, and Transmitted May 16, 2018 The following bills were read the first time. Patrick D. Murphy, Chief Clerk, House of Representatives FIRST READING OF HOUSE BILLS H.F. No. 3202: A bill for an act relating to health; adding a project to the hospital construction moratorium exception; changing provisions for the plan required for an exception to the hospital

5 99TH DAY] THURSDAY, MAY 17, construction moratorium; amending Minnesota Statutes 2016, section ; Minnesota Statutes 2017 Supplement, section , subdivision 1. Referred to the Committee on Rules and Administration for comparison with S.F. No. 2892, now on General Orders. H.F. No. 3610: A bill for an act relating to public safety; enhancing the penalty for assaulting a police officer; criminalizing the dissemination of personal information about law enforcement officials in certain circumstances; amending Minnesota Statutes 2016, section , subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 609. Senator Benson, designee of the Chair of the Committee on Rules and Administration, moved that H.F. No be laid on the table. The motion prevailed. H.F. No. 3463: A bill for an act relating to motor vehicles; modifying various provisions governing motor vehicle titling and registration; appropriating money; amending Minnesota Statutes 2016, sections 80E.13; , subdivision 6; , by adding subdivisions; , subdivision 3; , subdivision 8a; , subdivision 1; 168A.12, subdivision 2; 168A.17, by adding a subdivision; Minnesota Statutes 2017 Supplement, section , subdivision 1a; proposing coding for new law in Minnesota Statutes, chapter 168A. Senator Benson, designee of the Chair of the Committee on Rules and Administration, moved that H.F. No be laid on the table. The motion prevailed. REPORTS OF COMMITTEES Senator Benson moved that the Committee Reports at the Desk be now adopted. The motion prevailed. Senator Gazelka, from the Committee on Rules and Administration, to which was referred H.F. No for comparison with companion Senate File, reports the following House File was found not identical with companion Senate File as follows: GENERAL ORDERS H.F. No. S.F. No CONSENT CALENDAR H.F. No. S.F. No. CALENDAR H.F. No. S.F. No. Pursuant to Rule 45, the Committee on Rules and Administration recommends that H.F. No be amended as follows: Delete all the language after the enacting clause of H.F. No. 3674; and insert the language after the enacting clause of S.F. No. 3554, the first engrossment; further, delete the title of H.F. No. 3674; and insert the title of S.F. No. 3554, the first engrossment. And when so amended H.F. No will be identical to S.F. No. 3554, and further recommends that H.F. No be given its second reading and substituted for S.F. No. 3554, and that the Senate File be indefinitely postponed.

6 9266 JOURNAL OF THE SENATE [99TH DAY Pursuant to Rule 45, this report was prepared and submitted by the Secretary of the Senate on behalf of the Committee on Rules and Administration. Amendments adopted. Report adopted. Senator Gazelka from the Committee on Rules and Administration, to which was referred S.F. No. 4075: A bill for an act relating to legislative enactments; correcting miscellaneous oversights, inconsistencies, ambiguities, unintended results, and technical errors; amending Minnesota Statutes 2016, section 14.47, subdivision 5. Reports the same back with the recommendation that the bill be amended as follows: Page 2, after line 25, insert: "Sec. 2. [CORR18-03A] Laws 2018, chapter 121, section 1, the effective date, is amended to read: EFFECTIVE DATE. This section is effective August 1 June 30, EFFECTIVE DATE. This section is effective the day following final enactment. Sec. 3. [CORR18-03B] Laws 2018, chapter 121, section 2, the effective date, is amended to read: EFFECTIVE DATE. This section is effective August 1 June 30, EFFECTIVE DATE. This section is effective the day following final enactment. Sec. 4. [CORR18-03C] Laws 2018, chapter 121, section 3, the effective date, is amended to read: EFFECTIVE DATE. This section is effective August 1 June 30, EFFECTIVE DATE. This section is effective the day following final enactment. Sec. 5. [CORR18-03D] Laws 2018, chapter 121, section 4, the effective date, is amended to read: EFFECTIVE DATE. This section is effective August 1 June 30, EFFECTIVE DATE. This section is effective the day following final enactment. Sec. 6. [CORR18-03E] Laws 2018, chapter 121, section 5, the effective date, is amended to read: EFFECTIVE DATE. This section is effective August 1 June 30, EFFECTIVE DATE. This section is effective the day following final enactment. Sec. 7. [CORR18-03F] Laws 2018, chapter 121, section 6, the effective date, is amended to read:

7 99TH DAY] THURSDAY, MAY 17, EFFECTIVE DATE. This section is effective August 1 June 30, EFFECTIVE DATE. This section is effective the day following final enactment. Sec. 8. EFFECTIVE DATE. Unless otherwise provided, each section of this act is effective at the time the provision being corrected is effective." Renumber the sections in sequence Amend the title accordingly And when so amended the bill do pass. Amendments adopted. Report adopted. S.F. No was read the second time. H.F. No was read the second time. SECOND READING OF SENATE BILLS SECOND READING OF HOUSE BILLS INTRODUCTION AND FIRST READING OF SENATE BILLS The following bills were read the first time. Senator Koran introduced-- S.F. No. 4088: A bill for an act relating to municipal contracting; increasing transparency for certain bids; amending Minnesota Statutes 2016, section , subdivision 6. Referred to the Committee on Local Government. Senator Dziedzic introduced-- S.F. No. 4089: A bill for an act relating to real property; requiring tenant notice of grounds for eviction before action may be brought; amending Minnesota Statutes 2016, section 504B.321. Referred to the Committee on Judiciary and Public Safety Finance and Policy. Senator Bigham introduced-- S.F. No. 4090: A bill for an act relating to local government; providing a contested case hearing procedure; amending Minnesota Statutes 2016, section , subdivisions 1, 2; proposing coding for new law in Minnesota Statutes, chapter 390. Referred to the Committee on Local Government.

8 9268 JOURNAL OF THE SENATE [99TH DAY Senators Simonson, Tomassoni, Wiger, Wiklund, and Hoffman introduced-- S.F. No. 4091: A bill for an act relating to education finance; increasing special education funding for school districts; reducing the tuition billbacks to resident school districts; adding local optional revenue and operating referendum revenue to general education revenue for charter schools; amending Minnesota Statutes 2016, sections 124E.20, subdivision 1; 124E.21, subdivision 3; 125A.76, as amended; 125A.79; 127A.45, subdivision 13; 127A.47, subdivision 7. Referred to the Committee on E-12 Finance. Senator Osmek introduced-- S.F. No. 4092: A bill for an act relating to capital investment; appropriating money for capital investment; appropriating money for water and sewer infrastructure in Spring Park; authorizing the sale and issuance of state bonds. Referred to the Committee on Capital Investment. Senators Wiklund and Wiger introduced-- S.F. No. 4093: A bill for an act relating to education; establishing a legislative working group on early childhood programs. Referred to the Committee on E-12 Policy. Senator Hoffman introduced-- S.F. No. 4094: A bill for an act relating to health occupations; requiring health care providers to obtain a direct secure messaging address; proposing coding for new law in Minnesota Statutes, chapters 62J; 214. Referred to the Committee on Health and Human Services Finance and Policy. Senators Pratt and Koran introduced-- S.F. No. 4095: A bill for an act relating to state government; modifying certain requirements related to state workforce reporting; requiring a legislative report; amending Minnesota Statutes 2016, section 16A.122, subdivision 3. Referred to the Committee on State Government Finance and Policy and Elections. Senators Dziedzic and Dibble introduced-- S.F. No. 4096: A bill for an act relating to education finance; authorizing a fund transfer for the Minneapolis school district. Referred to the Committee on E-12 Finance.

9 99TH DAY] THURSDAY, MAY 17, Senators Abeler; Fischbach; Draheim; Anderson, P.; and Gazelka introduced-- S.F. No. 4097: A bill for an act relating to higher education; prohibiting the Board of Regents of the University of Minnesota from funding fellowships related to abortion training, advocacy, or education; proposing coding for new law in Minnesota Statutes, chapter 137. Referred to the Committee on Higher Education Finance and Policy. Senators Tomassoni, Bakk, Dziedzic, Housley, and Sparks introduced-- S.F. No. 4098: A bill for an act relating to capital investment; appropriating money for improvements to the Hoyt Lakes ice arena; authorizing the sale and issuance of state bonds. Referred to the Committee on Capital Investment. MOTIONS AND RESOLUTIONS Senator Anderson, B. moved that the name of Senator Bigham be added as a co-author to S.F. No The motion prevailed. Senator Carlson introduced -- Senate Resolution No. 260: A Senate resolution honoring Eagan High School graduate Vananh Vo for entering the United States Air Force. Referred to the Committee on Rules and Administration. Senator Gazelka introduced -- Senate Resolution No. 261: A Senate resolution honoring the Wadena Soil & Water Conservation District on its 60th Anniversary. Referred to the Committee on Rules and Administration. Senator Benson, designee of the Chair of the Committee on Rules and Administration, moved that H.F. No be taken from the table and given a second reading. The motion prevailed. H.F. No. 1481: A bill for an act relating to public safety; providing enhanced criminal penalties for assaulting firefighters and medical personnel; amending Minnesota Statutes 2016, section , subdivision 2. H.F. No was read the second time. Senator Benson moved that H.F. No be laid on the table. The motion prevailed. Senator Benson, designee of the Chair of the Committee on Rules and Administration, moved that H.F. No be taken from the table and given a second reading. The motion prevailed.

10 9270 JOURNAL OF THE SENATE [99TH DAY H.F. No. 3611: A bill for an act relating to public safety; prohibiting local units of government from disarming peace officers who are in good standing; amending Minnesota Statutes 2016, section , by adding a subdivision. H.F. No was read the second time. Senator Benson moved that H.F. No be laid on the table. The motion prevailed. Senators Gazelka and Bakk introduced -- Senate Concurrent Resolution No. 11: A Senate concurrent resolution relating to the delivery of bills to the Governor after final adjournment. WHEREAS, the Minnesota Constitution, Article IV, Section 23, authorizes the presentation to the Governor after sine die adjournment of bills that passed in the last three days of the Session; NOW, THEREFORE, BE IT RESOLVED, by the Senate of the State of Minnesota, the House of Representatives concurring, that upon adjournment sine die of the 90th regular session of the Legislature, bills must be presented to the Governor as follows: (a) The Speaker of the House of Representatives, the Chief Clerk of the House of Representatives, the President of the Senate, and the Secretary of the Senate shall certify and sign each bill in the same manner and upon the same certification as each bill is signed for presentation to the Governor before adjournment sine die, and each of those officers shall continue in their designated capacity during the three days following the date of final adjournment. (b) The Chief Clerk of the House of Representatives and the Secretary of the Senate, in accordance with the rules of the respective bodies and under the supervision and direction of the standing Committee on Rules and Legislative Administration and the standing Committee on Rules and Administration, shall carefully enroll each bill and present it to the Governor in the same manner as each bill is enrolled and presented to the Governor before adjournment of the Legislature sine die. (c) The Revisor of Statutes shall continue to assist in all of the functions relating to enrollment of bills of the House of Representatives and of the Senate under the supervision of the Chief Clerk of the House of Representatives and the Secretary of the Senate in the same manner that the assistance was rendered before adjournment of the Legislature sine die. BE IT FURTHER RESOLVED that the Secretary of the Senate is directed to deliver copies of this resolution to the Governor and the Secretary of State. Senator Benson moved the adoption of the foregoing resolution. The motion prevailed. So the resolution was adopted. SPECIAL ORDERS Pursuant to Rule 26, Senator Benson, designee of the Chair of the Committee on Rules and Administration, designated the following bills a Special Orders Calendar to be heard immediately:

11 99TH DAY] THURSDAY, MAY 17, H.F. No. 3873, S.F. No. 2565, H.F. No. 4133, and S.F. No SPECIAL ORDER H.F. No. 3873: A bill for an act relating to workers' compensation; adopting recommendations of the Workers' Compensation Advisory Council; modifying workers' compensation provisions; modifying hospital outpatient fee schedules; modifying billing, payment, and dispute resolution; defining ambulatory surgical center payments; modifying covered benefits; amending Minnesota Statutes 2016, sections 175A.05; , subdivision 15; , subdivisions 2, 2a, 4; , subdivision 11; , subdivision 1b; , subdivision 9; , subdivision 5; Minnesota Statutes 2017 Supplement, section 15A.083, subdivision 7; Laws 2017, chapter 94, article 1, section 6; proposing coding for new law in Minnesota Statutes, chapter 176. H.F. No was read the third time and placed on its final passage. The question was taken on the passage of the bill. The roll was called, and there were yeas 61 and nays 0, as follows: Those who voted in the affirmative were: Abeler Anderson, B. Anderson, P. Benson Bigham Carlson Chamberlain Clausen Cohen Cwodzinski Dahms Dibble Draheim Dziedzic Eaton Eichorn Eken Fischbach Franzen Frentz Goggin Hall Hawj Hayden Hoffman Housley Ingebrigtsen Isaacson Jasinski Jensen Johnson Kent Klein Koran Laine Lang Latz Limmer Little So the bill passed and its title was agreed to. Lourey Marty Mathews Nelson Newman Newton Osmek Pappas Pratt Relph Rest Ruud Senjem Simonson Sparks Tomassoni Torres Ray Utke Weber Westrom Wiger Wiklund SPECIAL ORDER S.F. No. 2565: A bill for an act relating to unemployment insurance; adopting recommendations of the Unemployment Insurance Advisory Council; amending Minnesota Statutes 2016, sections , subdivisions 4, 12; , subdivisions 2, 3; , subdivision 3; , subdivisions 2a, 3; , subdivision 1; , subdivision 5; ; ; ; , subdivision 1; , subdivisions 3, 3a; , subdivision 6a; , subdivision 6; , subdivision 1; Minnesota Statutes 2017 Supplement, sections , subdivisions 15, 20; , subdivision 1; , subdivision 1; , subdivision 13a; , subdivision 6; , subdivisions 2b, 5; repealing Minnesota Statutes 2016, section , subdivisions 4, 5. S.F. No was read the third time and placed on its final passage. The question was taken on the passage of the bill. The roll was called, and there were yeas 59 and nays 0, as follows:

12 9272 JOURNAL OF THE SENATE [99TH DAY Those who voted in the affirmative were: Abeler Anderson, B. Anderson, P. Benson Bigham Carlson Chamberlain Clausen Cohen Cwodzinski Dahms Dibble Draheim Dziedzic Eaton Eichorn Eken Fischbach Franzen Frentz Goggin Hall Hawj Hayden Hoffman Housley Ingebrigtsen Isaacson Jasinski Jensen Johnson Kent Kiffmeyer Klein Koran Laine Lang Little Lourey Marty Mathews Nelson Newton Osmek Pappas Pratt Relph Rest Ruud Senjem Simonson Sparks Tomassoni Torres Ray Utke Weber Westrom Wiger Wiklund So the bill passed and its title was agreed to. RECESS Senator Benson moved that the Senate do now recess subject to the call of the President. The motion prevailed. After a brief recess, the President called the Senate to order. CALL OF THE SENATE Senator Gazelka imposed a call of the Senate. The Sergeant at Arms was instructed to bring in the absent members. CONFERENCE COMMITTEE EXCUSED Pursuant to Rule 12.5, Senator Pratt moved that the following members be excused for a Conference Committee on S.F. No at 4:20 p.m.: Senators Pratt, Newton, and Jensen. The motion prevailed. SPECIAL ORDER H.F. No. 4133: A bill for an act relating to agriculture; making policy and technical changes to various agricultural provisions; modifying various agriculture programs and requirements; modifying the cottage foods exemption; modifying certain rulemaking authority; making changes to certain production incentive programs; amending Minnesota Statutes 2016, sections , subdivisions 1, 4, 11; ; , by adding subdivisions; 18.83, subdivision 7; 18B.34, subdivision 5; 25.33, subdivision 8; 28A.04, subdivision 1; 28A.08, subdivision 3; 28A.152, as amended; 29.26; 34A.11, subdivision 7; 41A.15, subdivision 10, by adding a subdivision; 41A.16, subdivisions 1, 4; 41A.17, subdivisions 1, 2, 3; 41A.18, subdivisions 1, 3; 41B.02, subdivision 10a; 41B.047, subdivisions 1, 3; 41B.049, subdivision 5; 41B.055, subdivision 3; 41B.057, subdivision 3; 103H.275, subdivision 1; Minnesota Statutes 2017 Supplement, sections 28A.05; 32D.13, by adding a subdivision; 32D.20, subdivision 2; 32D.22; proposing coding for new law in Minnesota Statutes, chapter 17; repealing Minnesota Statutes 2016, section 41A.15, subdivisions 2a, 2b.

13 99TH DAY] THURSDAY, MAY 17, Senator Weber moved to amend H.F. No. 4133, as amended pursuant to Rule 45, adopted by the Senate May 15, 2018, as follows: (The text of the amended House File is identical to S.F. No ) Delete everything after the enacting clause and insert: "Section 1. Minnesota Statutes 2016, section , subdivision 1, is amended to read: Subdivision 1. Purpose. The purpose of the agriculture best management practices loan program is to provide low or no interest financing to farmers, agriculture supply businesses, rural landowners, chapter 103E drainage authorities, and water-quality cooperatives for the implementation of agriculture and other best management practices that reduce environmental pollution. EFFECTIVE DATE. This section is effective the day following final enactment. Sec. 2. Minnesota Statutes 2016, section , subdivision 4, is amended to read: Subd. 4. Definitions. (a) For the purposes of this section, the terms defined in this subdivision have the meanings given them. (b) "Agricultural and environmental revolving accounts" means accounts in the agricultural fund, controlled by the commissioner, which hold funds available to the program. (c) "Agriculture supply business" means a person, partnership, joint venture, corporation, limited liability company, association, firm, public service company, or cooperative that provides materials, equipment, or services to farmers or agriculture-related enterprises. (d) "Allocation" means the funds awarded to an applicant for implementation of best management practices through a competitive or noncompetitive application process. (e) "Applicant" means a local unit of government eligible to participate in this program that requests an allocation of funds as provided in subdivision 6b. (f) "Best management practices" has the meaning given in sections 103F.711, subdivision 3, and 103H.151, subdivision 2. Best management practices also means other practices, techniques, and measures that have been demonstrated to the satisfaction of the commissioner: (1) to prevent or reduce adverse environmental impacts by using the most effective and practicable means of achieving environmental goals; or (2) to achieve drinking water quality standards under chapter 103H or under Code of Federal Regulations, title 40, parts 141 and 143, as amended. (g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner, or a chapter 103E drainage authority applying for a low-interest loan. (h) "Commissioner" means the commissioner of agriculture, including when the commissioner is acting in the capacity of chair of the Rural Finance Authority, or the designee of the commissioner. (i) "Committed project" means an eligible project scheduled to be implemented at a future date: (1) that has been approved and certified by the local government unit; and

14 9274 JOURNAL OF THE SENATE [99TH DAY (2) for which a local lender has obligated itself to offer a loan. (j) "Comprehensive water management plan" means a state-approved and locally adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331, 103D.401, or 103D.405. (k) "Cost incurred" means expenses for implementation of a project accrued because the borrower has agreed to purchase equipment or is obligated to pay for services or materials already provided as a result of implementing an approved eligible project. (l) "Farmer" means a person, partnership, joint venture, corporation, limited liability company, association, firm, public service company, or cooperative that regularly participates in physical labor or operations management of farming and files a Schedule F as part of filing United States Internal Revenue Service Form 1040 or indicates farming as the primary business activity under Schedule C, K, or S, or any other applicable report to the United States Internal Revenue Service. (m) "Lender agreement" means an agreement entered into between the commissioner and a local lender which contains terms and conditions of participation in the program. (n) "Local government unit" means a county, soil and water conservation district, or an organization formed for the joint exercise of powers under section with the authority to participate in the program. (o) "Local lender" means a local government unit as defined in paragraph (n), a state or federally chartered bank, a savings association, a state or federal credit union, Agribank and its affiliated organizations, or a nonprofit economic development organization or other financial lending institution approved by the commissioner. (p) "Local revolving loan account" means the account held by a local government unit and a local lender into which principal repayments from borrowers are deposited and new loans are issued in accordance with the requirements of the program and lender agreements. (q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6. (r) "Program" means the agriculture best management practices loan program in this section. (s) "Project" means one or more components or activities located within Minnesota that are required by the local government unit to be implemented for satisfactory completion of an eligible best management practice. (t) "Rural landowner" means the owner of record of Minnesota real estate located in an area determined by the local government unit to be rural after consideration of local land use patterns, zoning regulations, jurisdictional boundaries, local community definitions, historical uses, and other pertinent local factors. (u) "Water-quality cooperative" has the meaning given in section , paragraph (d), except as expressly limited in this section. EFFECTIVE DATE. This section is effective the day following final enactment. Sec. 3. Minnesota Statutes 2016, section , subdivision 11, is amended to read:

15 99TH DAY] THURSDAY, MAY 17, Subd. 11. Loans issued to borrower. (a) Local lenders may issue loans only for projects that are approved and certified by the local government unit as meeting priority needs identified in a comprehensive water management plan or other local planning documents, are in compliance with accepted practices, standards, specifications, or criteria, and are eligible for financing under Environmental Protection Agency or other applicable guidelines. (b) The local lender may use any additional criteria considered necessary to determine the eligibility of borrowers for loans. (c) Local lenders shall set the terms and conditions of loans to borrowers, except that: (1) no loan to a borrower may exceed $200,000; (2) no loan for a project may exceed $200,000; and (3) no borrower shall, at any time, have multiple loans from this program with a total outstanding loan balance of more than $200,000. Notwithstanding the limits in clauses (1) to (3), a chapter 103E drainage authority may request a loan to finance projects implemented on behalf of multiple landowners and the loan must not exceed an amount equal to the number of landowners represented in the drainage system multiplied by the limit in clause (1). (d) The maximum term length for projects in this paragraph is ten years. (e) Fees charged at the time of closing must: (1) be in compliance with normal and customary practices of the local lender; (2) be in accordance with published fee schedules issued by the local lender; (3) not be based on participation program; and (4) be consistent with fees charged other similar types of loans offered by the local lender. (f) The interest rate assessed to an outstanding loan balance by the local lender must not exceed three percent per year. EFFECTIVE DATE. This section is effective the day following final enactment. Sec. 4. Minnesota Statutes 2016, section , is amended to read: AQUACULTURE PERMITS; RULES. (a) The commissioner shall act as permit or license coordinator for aquatic farmers and shall assist aquatic farmers to obtain licenses or permits. By July 1, 1992, (b) A state agency issuing multiple permits or licenses for aquaculture shall consolidate the permits or licenses required for every aquatic farm location. The Department of Natural Resources transportation permits are exempt from this requirement. State agencies shall adopt rules or issue commissioner's orders that establish permit and license requirements, approval

16 9276 JOURNAL OF THE SENATE [99TH DAY timelines, and compliance standards. Saltwater aquatic farms, as defined in section , and processing facilities for saltwater aquatic life, as defined in section , must be classified as agricultural operations for purposes of any construction, discharge, or other permit issued by the Pollution Control Agency. Nothing in this section modifies any state agency's regulatory authority over aquaculture production. Sec. 5. Minnesota Statutes 2016, section , is amended by adding a subdivision to read: Subd. 20a. Saltwater aquaculture. "Saltwater aquaculture" means the commercial propagation and rearing of saltwater aquatic life including, but not limited to, crustaceans, primarily for consumption as human food. Sec. 6. Minnesota Statutes 2016, section , is amended by adding a subdivision to read: Subd. 20b. Saltwater aquatic farm. "Saltwater aquatic farm" means a facility used for saltwater aquaculture including but not limited to artificial ponds, vats, tanks, raceways, and other facilities that an aquatic farmer owns or has exclusive control of for the sole purpose of producing saltwater aquatic life. Sec. 7. Minnesota Statutes 2016, section , is amended by adding a subdivision to read: Subd. 20c. Saltwater aquatic life. "Saltwater aquatic life" means aquatic species that are saltwater obligates or perform optimally when raised in salinities closer to that of natural seawater and need saltwater to survive. Sec. 8. [17.499] TRANSPORTATION OR IMPORTATION OF SALTWATER AQUATIC LIFE; QUARANTINE REQUIREMENT. Subdivision 1. Purpose. The legislature finds that it is in the public interest to increase private saltwater aquaculture production and processing in this state under the coordination of the commissioner of agriculture. Additional private production will reduce dependence on foreign suppliers and benefit the rural economy by creating new jobs and economic activity. Subd. 2. Transportation permit. (a) Notwithstanding the requirements in section , saltwater aquatic life transportation and importation requirements are governed by this section. A transportation permit is required prior to any importation or intrastate transportation of saltwater aquatic life not exempted under subdivision 3. A transportation permit may be used for multiple shipments within the 30-day term of the permit if the source and the destination remain the same. Transportation permits must be obtained from the commissioner prior to shipment of saltwater aquatic life. (b) An application for a transportation permit must be made in the form required by the commissioner. The commissioner may reject an incomplete application. (c) An application for a transportation permit must be accompanied by satisfactory evidence, as determined by the commissioner, that the shipment is free of any nonindigenous species of animal other than the saltwater aquatic species and either:

17 99TH DAY] THURSDAY, MAY 17, (1) the facility from which the saltwater aquatic life originated has provided documentation of 36 or more consecutive months of negative testing by an approved laboratory as free of any disease listed by OIE - the World Organisation for Animal Health for that species following the testing guidelines outlined in the OIE Aquatic Animal Health Code for crustaceans or the AFS Fish Health Blue Book for other species, as appropriate; or (2) the saltwater aquatic life to be imported or transported includes documentation of negative testing for that specific lot by an approved laboratory as free of any disease listed by OIE - the World Organisation for Animal Health for crustaceans or in the AFS Fish Health Blue Book for other species, as appropriate. If a shipment authorized by the commissioner under clause (1) includes saltwater aquatic life that originated in a foreign country, the shipment must be quarantined at the receiving facility according to a quarantine plan approved by the commissioner. A shipment authorized by the commissioner under clause (2) must be quarantined at the receiving facility according to a quarantine plan approved by the commissioner. (d) For purposes of this subdivision, "approved laboratory" means a laboratory approved by the commissioner or the United States Department of Agriculture, Animal and Plant Health Inspection Services. (e) No later than 14 calendar days after a completed transportation permit application is received, the commissioner must approve or deny the transportation permit application. (f) A copy of the transportation permit must accompany a shipment of saltwater aquatic life while in transit and must be available for inspection by the commissioner. (g) A vehicle used by a licensee for transporting aquatic life must be identified with the license number and the licensee's name and town of residence as it appears on the license. A vehicle used by a licensee must have identification displayed so that it is readily visible from either side of the vehicle in letters and numbers not less than 2-1/2 inches high and three-eighths inch wide. Identification may be permanently affixed to vehicles or displayed on removable plates or placards placed on opposite doors of the vehicle or on the tanks carried on the vehicle. (h) An application to license a vehicle for brood stock or larvae transport or for use as a saltwater aquatic life vendor that is received by the commissioner is a temporary license until approved or denied by the commissioner. Subd. 3. Exemptions. (a) A transportation permit is not required to transport or import saltwater aquatic life: (1) previously processed for use as food or other purposes unrelated to propagation; (2) transported directly to an outlet for processing as food or for other food purposes if accompanied by shipping documents; (3) that is being exported if accompanied by shipping documents; (4) that is being transported through the state if accompanied by shipping documents; or

18 9278 JOURNAL OF THE SENATE [99TH DAY (5) transported intrastate within or between facilities licensed for saltwater aquaculture by the commissioner if accompanied by shipping documents. (b) Shipping documents required under paragraph (a) must include the place of origin, owner or consignee, destination, number, species, and satisfactory evidence, as determined by the commissioner, of the disease-free certification required under subdivision 2, paragraph (c), clauses (1) and (2). Sec. 9. Minnesota Statutes 2016, section 18B.34, subdivision 5, is amended to read: Subd. 5. Fees. (a) A person initially applying for or renewing a noncommercial applicator license must pay a nonrefundable application fee of $50, except an applicant who is uses pesticides in the course of performing official duties as: (1) a government employee; (2) a contractor providing rest area custodial services for the commissioner of transportation; or (3) a Conservation Corps Minnesota employee who uses pesticides in the course of performing official duties must pay a nonrefundable application fee of $10. (b) A license renewal application received after March 1 in the year for which the license is to be issued is subject to a penalty fee of 50 percent of the application fee. The penalty fee must be paid before the renewal license may be issued. (c) An application for a duplicate noncommercial applicator license must be accompanied by a nonrefundable application fee of $10. Sec. 10. Minnesota Statutes 2016, section 25.33, subdivision 8, is amended to read: Subd. 8. Drug. "Drug" means (1) any article intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in animals other than humans; and (2) articles other than feed intended to affect the structure or any function of the animal body. Sec. 11. Minnesota Statutes 2016, section 28A.04, subdivision 1, is amended to read: Subdivision 1. Application; date of issuance. (a) No person shall engage in the business of manufacturing, processing, selling, handling, or storing food without having first obtained from the commissioner a license for doing such business. Applications for such license shall be made to the commissioner in such manner and time as required and upon such forms as provided by the commissioner and shall contain the name and address of the applicant, address or description of each place of business, and the nature of the business to be conducted at each place, and such other pertinent information as the commissioner may require. (b) A retail or wholesale food handler license shall be issued for the period July 1 to June 30 following and shall be renewed thereafter by the licensee on or before July 1 each year, except that: (1) licenses for all mobile food concession units and retail mobile units must be issued for the period April 1 to March 31, and must be renewed thereafter by the licensee on or before April 1 each year; and (2) a license issued for a temporary food concession stand must have a license issuance and renewal date consistent with appropriate statutory provisions.

19 99TH DAY] THURSDAY, MAY 17, (c) A custom exempt food handler license shall be issued for the period July 1 to June 30 following and shall be renewed thereafter by the licensee on or before July 1 each year. The custom exempt food handler license is for businesses that only conduct custom exempt operations and mark all products as "Not For Sale." Food handlers that conduct retail exempt operations or other operations other than custom exempt processing or slaughter are not eligible for this license. (d) A license for a food broker or for a food processor or manufacturer shall be issued for the period January 1 to December 31 following and shall be renewed thereafter by the licensee on or before January 1 of each year, except that a license for a wholesale food processor or manufacturer operating only at the state fair shall be issued for the period July 1 to June 30 following and shall be renewed thereafter by the licensee on or before July 1 of each year. A penalty for a late renewal shall be assessed in accordance with section 28A.08. (c) (e) A person applying for a new license up to 14 calendar days before the effective date of the new license period under paragraph (b) must be issued a license for the 14 days and the next license year as a single license and pay a single license fee as if the 14 days were part of the upcoming license period. Sec. 12. Minnesota Statutes 2017 Supplement, section 28A.05, is amended to read: 28A.05 CLASSIFICATION. All persons required to have a license under section 28A.04 shall be classified into one of the following classes of food handlers, according to their principal mode of business. (a) Retail food handlers are persons who sell or process and sell food directly to the ultimate consumer or who custom process meat or poultry. The term includes a person who sells food directly to the ultimate consumer through the use of vending machines, and a person who sells food for consumption on site or off site if the sale is conducted on the premises that are part of a grocery or convenience store operation. (b) Wholesale food handlers are persons who sell to others for resale. A person who handles food in job lots (jobbers) is included in this classification. (c) Wholesale food processors or manufacturers are persons who process or manufacture raw materials and other food ingredients into food items, or who reprocess food items, or who package food for sale to others for resale, or who commercially slaughter animals or poultry. Included herein are persons who can, extract, ferment, distill, pickle, bake, freeze, dry, smoke, grind, mix, stuff, pack, bottle, recondition, or otherwise treat or preserve food for sale to others for resale, cold storage warehouse operators as defined in section 28.01, subdivision 3, salvage food processors as defined in section , subdivision 1, and dairy plants as defined in section 32D.01, subdivision 6. (d) Custom exempt food handlers are persons who only conduct custom exempt processing as defined in section 31A.02, subdivision 5. A retail or wholesale transaction may not take place in a facility operated by a person with a custom exempt food handler license. (d) (e) A food broker is a person who buys and sells food and who negotiates between a buyer and a seller of food, but who at no time has custody of the food being bought and sold.

20 9280 JOURNAL OF THE SENATE [99TH DAY Sec. 13. Minnesota Statutes 2016, section 28A.08, subdivision 3, is amended to read: Subd. 3. Fees effective July 1, Type of food handler Retail food handler or custom exempt food handler (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 (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 (c) Having $50,001 to $250,000 gross sales or service for the immediately previous license or fiscal year (d) Having $250,001 to $1,000,000 gross sales or service for the immediately previous license or fiscal year (e) Having $1,000,001 to $5,000,000 gross sales or service for the immediately previous license or fiscal year (f) Having $5,000,001 to $10,000,000 gross sales or service for the immediately previous license or fiscal year (g) Having $10,000,001 to $15,000,000 gross sales or service for the immediately previous license or fiscal year (h) Having $15,000,001 to $20,000,000 gross sales or service for the immediately previous license or fiscal year (i) Having $20,000,001 to $25,000,000 gross sales or service for the immediately previous license or fiscal year (j) Having over $25,000,001 gross sales or service for the immediately previous license or fiscal year Wholesale food handler License Fee Effective July 1, 2003 $ 50 $ 77 $155 $276 $799 $1,162 $1,376 $1,607 $1,847 $2,001 Penalties Late Renewal $ 17 $ 25 $ 51 $ 91 $264 $383 $454 $530 $610 $660 No License $ 33 $ 51 $102 $182 $527 $767 $908 $1,061 $1,219 $1,321

21 99TH DAY] THURSDAY, MAY 17, (a) Having gross sales or service of less than $25,000 for the immediately previous license or fiscal year (b) Having $25,001 to $250,000 gross sales or service for the immediately previous license or fiscal year (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 (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 (e) Having $1,000,001 to $5,000,000 gross sales or service for the immediately previous license or fiscal year (f) Having $5,000,001 to $10,000,000 gross sales or service for the immediately previous license or fiscal year (g) Having $10,000,001 to $15,000,000 gross sales or service for the immediately previous license or fiscal year (h) Having $15,000,001 to $20,000,000 gross sales or service for the immediately previous license or fiscal year (i) Having $20,000,001 to $25,000,000 gross sales or service for the immediately previous license or fiscal year (j) Having over $25,000,001 or more gross sales or service for the immediately previous license or fiscal year Food broker Wholesale food processor or manufacturer (a) Having gross sales or service of less than $125,000 for the immediately previous license or fiscal year (b) Having $125,001 to $250,000 gross sales or service for the immediately previous license or fiscal year (c) Having $250,001 to $1,000,000 gross sales or service for the immediately previous license or fiscal year $ 57 $284 $444 $590 $769 $920 $990 $1,156 $1,329 $1,502 $150 $169 $392 $590 $ 19 $ 94 $147 $195 $254 $304 $327 $381 $439 $496 $ 50 $ 56 $129 $195 $ 38 $187 $293 $389 $508 $607 $653 $763 $877 $991 $ 99 $112 $259 $389

22 9282 JOURNAL OF THE SENATE [99TH DAY 5. (d) Having $1,000,001 to $5,000,000 gross sales or service for the immediately previous license or fiscal year (e) Having $5,000,001 to $10,000,000 gross sales or service for the immediately previous license or fiscal year (f) Having $10,000,001 to $15,000,000 gross sales or service for the immediately previous license or fiscal year (g) Having $15,000,001 to $20,000,000 gross sales or service for the immediately previous license or fiscal year (h) Having $20,000,001 to $25,000,000 gross sales or service for the immediately previous license or fiscal year (i) Having $25,000,001 to $50,000,000 gross sales or service for the immediately previous license or fiscal year (j) Having $50,000,001 to $100,000,000 gross sales or service for the immediately previous license or fiscal year (k) Having $100,000,000 or more gross sales or service for the immediately previous license or fiscal year Wholesale food processor of meat or poultry products under supervision of the U.S. Department of Agriculture (a) Having gross sales or service of less than $125,000 for the immediately previous license or fiscal year (b) Having $125,001 to $250,000 gross sales or service for the immediately previous license or fiscal year (c) Having $250,001 to $1,000,000 gross sales or service for the immediately previous license or fiscal year (d) Having $1,000,001 to $5,000,000 gross sales or service for the immediately previous license or fiscal year (e) Having $5,000,001 to $10,000,000 gross sales or service for the immediately previous license or fiscal year (f) Having over $10,000,001 gross sales or service for the immediately previous license or fiscal year $769 $920 $1,377 $1,608 $1,849 $2,090 $2,330 $2,571 $112 $214 $333 $425 $521 $765 $254 $304 $454 $531 $610 $690 $769 $848 $ 37 $ 71 $110 $140 $172 $252 $508 $607 $909 $1,061 $1,220 $1,379 $1,538 $1,697 $ 74 $141 $220 $281 $344 $505