House Journal 52nd Day Wednesday April 19 2023

A quorum was present.

Davids, Kiel, McDonald and Quam were excused.

Pelowski was excused until 1:55 p.m.

The Chief Clerk proceeded to read the Journal of the preceding day. There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.

Journal of the House - 52nd Day - Wednesday, April 19, 2023 - Top of Page 5476

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Olson, L., from the Committee on Ways and Means to which was referred:

H. F. No. 100, A bill for an act relating to cannabis; establishing the Office of Cannabis Management; establishing advisory councils; requiring reports relating to cannabis use and sales; legalizing and limiting the possession and use of cannabis and certain hemp products by adults; providing for the licensing, inspection, and regulation of cannabis businesses and hemp businesses; requiring testing of cannabis flower, cannabis products, and certain hemp products; requiring labeling of cannabis flower, cannabis products, and certain hemp products; limiting the advertisement of cannabis flower, cannabis products, and cannabis businesses, and hemp businesses; providing for the cultivation of cannabis in private residences; transferring regulatory authority for the medical cannabis program; taxing the sale of cannabis flower, cannabis products, and certain hemp products; establishing grant and loan programs; clarifying the prohibition on operating a motor vehicle while under the influence of certain products and chemicals; amending criminal penalties; establishing expungement procedures for certain individuals; requiring reports on expungements; providing for expungement of certain evictions; clarifying the rights of landlords and tenants regarding use of certain forms of cannabis; establishing labor standards for the use of cannabis flower, cannabis products, and certain hemp products by employees and testing of employees; providing for the temporary regulation of certain edible cannabinoid products; providing for professional licensing protections; providing for local registration of certain cannabis businesses and hemp businesses operating retail establishments; amending the scheduling of marijuana and tetrahydrocannabinols; classifying data; making miscellaneous cannabis-related changes and additions; making clarifying and technical changes; appropriating money; amending Minnesota Statutes 2022, sections 13.411, by adding a subdivision; 13.871, by adding a subdivision; 34A.01, subdivision 4; 144.99, subdivision 1; 144A.4791, subdivision 14; 151.72; 152.01, by adding subdivisions; 152.02, subdivisions 2, 4; 152.021, subdivisions 1, 2; 152.022, subdivisions 1, 2; 152.023, subdivisions 1, 2; 152.024, subdivision 1; 152.025, subdivisions 1, 2; 152.11, subdivision 2; 169A.03, by adding subdivisions; 169A.20, subdivision 1; 169A.51, subdivisions 1, 4; 169A.72; 175.45, subdivision 1; 181.938, subdivision 2; 181.950, subdivisions 2, 4, 5, 8, 13, by adding a subdivision; 181.951, subdivisions 4, 5, 6, by adding subdivisions; 181.952, by adding a subdivision; 181.953; 181.954; 181.955; 181.957, subdivision 1; 244.05, subdivision 2; 245C.08, subdivision 1; 256.01, subdivision 18c; 256B.0625, subdivision 13d; 256D.024, subdivisions 1, 3; 256J.26, subdivisions 1, 3; 270B.12, by adding a subdivision; 273.13, subdivision 24; 275.025, subdivision 2; 290.0132, subdivision 29; 290.0134, subdivision 19; 297A.61, subdivision 3; 297A.67, subdivisions 2, 7; 297A.70, subdivisions 2, 4, 18; 297A.85; 297A.99, by adding a subdivision; 297D.01; 297D.04; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivision 1a; 297D.10; 297D.11; 340A.412, subdivision 14; 484.014, subdivision 3; 504B.171, subdivision 1; 609.2112, subdivision 1; 609.2113, subdivisions 1, 2, 3; 609.2114, subdivisions 1, 2; 609.5311, subdivision 1; 609.5314, subdivision 1; 609.5316, subdivision 2; 609A.01; 609A.03, subdivisions 5, 9; 609B.425, subdivision 2; 609B.435, subdivision 2; 624.712, by adding subdivisions; 624.713, subdivision 1; 624.714, subdivision 6; 624.7142, subdivision 1; 624.7151; proposing coding for new law in Minnesota Statutes, chapters 3; 116J; 116L; 120B; 144; 152; 169A; 270C; 289A; 295; 340A; 504B; 609A; 624; proposing coding for new law as Minnesota Statutes, chapter 342; repealing Minnesota Statutes 2022, sections 151.72; 152.027, subdivisions 3, 4; 152.21; 152.22, subdivisions 1, 2, 3, 4, 5, 5a, 5b, 6, 7, 8, 9, 10, 11, 12, 13, 14; 152.23; 152.24; 152.25, subdivisions 1, 1a, 1b, 1c, 2, 3, 4; 152.26; 152.261; 152.27, subdivisions 1, 2, 3, 4, 5, 6, 7; 152.28, subdivisions 1, 2, 3; 152.29, subdivisions 1, 2, 3, 3a, 4; 152.30; 152.31; 152.32, subdivisions 1, 2, 3; 152.33, subdivisions 1, 1a, 2, 3, 4, 5, 6; 152.34; 152.35; 152.36, subdivisions 1, 1a, 2, 3, 4, 5; 152.37.

Reported the same back with the following amendments:

Page 135, line 11, after the period, insert "Of the amount transferred from the general fund to the account, the office may use up to three percent for administrative expenses."

Journal of the House - 52nd Day - Wednesday, April 19, 2023 - Top of Page 5477

Page 135, delete lines 19 to 29 and insert:

"(1) at least 75 percent of the money is for grants for substance use disorder and mental health recovery and prevention programs. Funds must be used for recovery and prevention activities and supplies that assist individuals and families to initiate, stabilize, and maintain long-term recovery from substance use disorders and co-occurring mental health conditions. Recovery and prevention activities may include prevention education, school-linked behavioral health, school-based peer programs, peer supports, self-care and wellness, culturally-specific healing, community public awareness, mutual aid networks, telephone recovery checkups, mental health warm lines, harm reduction, recovery community organization development, first episode psychosis programs, and recovery housing; and

(2) up to 25 percent of the money is for substance use disorder treatment programs, as defined in chapter 245G and may be used to implement, strengthen, or expand supportive services and activities that are not covered by Medical Assistance under chapter 256B, MinnesotaCare under chapter 256L, or the behavioral health fund under chapter 254B. Services and activities may include the adoption or expansion of evidence-based practices, competency-based training, continuing education, culturally-specific and culturally-responsive services, sober recreational activities, developing referral relationships, family preservation and healing, and start-up or capacity funding for programs that specialize in adolescent, culturally-specific, culturally-responsive, disability-specific, co‑occurring disorder, or family treatment services."

Page 135, line 31, after "health" insert ", the Governor's Advisory Council on Opioids, Substance Use, and Addiction"

Page 144, line 23, after "grower" insert "as defined in chapter 342"

Page 147, after line 24, insert:

"(b) "Bundled transaction" means the retail sale of two or more products when the products are otherwise distinct and identifiable and the products are sold for one nonitemized price."

Reletter the paragraphs in sequence

Page 148, line 31, delete "product" and insert "item"

Page 149, delete subdivisions 2 and 3 and insert:

"Subd. 2. Gross receipts tax imposed. (a) A tax equal to a rate established by subdivisions 2 and 3 of gross receipts from retail sales in Minnesota of taxable cannabis products is imposed on any taxable cannabis product retailer that sells these products to customers:

(1) for sales and purchases made on July 1, 2023, through June 30, 2027, the rate is equal to eight percent; and

(2) for sales and purchases made after June 30, 2027, the rate is equal to the amount established under subdivision 3.

(b) A taxable cannabis product retailer may but is not required to collect the tax imposed by this section from the purchaser as long as the tax is separately stated on the receipt, invoice, bill of sale, or similar document given to the purchaser.

(c) If a product subject to the tax imposed under this section is included in a bundled transaction, the entire sales price of the bundled transaction is subject to the tax imposed under this section.

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(d) The tax imposed under this section is in addition to any other tax imposed on the sale or use of taxable cannabis products.

Subd. 3. Tax rate adjustment. (a) Beginning in March 2027, in each odd-numbered year, the commissioner of management and budget shall use the February forecast of general fund revenues and expenditures reflecting the most recently completed fiscal year to determine that the conditions in paragraph (b) are met.

(b) Revenues raised by the tax imposed under this section combined with the tax imposed under chapter 297A on taxable cannabis products exceed the projected expenditures related to the ongoing regulation of cannabis for the upcoming biennium, including:

(1) the appropriations to the Office of Cannabis Management;

(2) the appropriations to the Department of Agriculture;

(3) the appropriations to the Cannabis Expungement Board;

(4) the appropriations to the Department of Commerce;

(5) the appropriations to the Department of Education;

(6) the appropriations to the Department of Employment and Economic Development;

(7) the appropriations to the Department of Health;

(8) the appropriations to the Department of Human Services;

(9) the appropriations to the Department of Labor and Industry;

(10) the appropriations to the Pollution Control Agency;

(11) the appropriations to the Department of Public Safety;

(12) the appropriations to the Department of Revenue;

(13) the transfers to the dual training account in the special revenue fund; and

(14) the transfers to the substance use treatment, recovery, and prevention grant account.

(c) The commissioner of management and budget shall report its determination to the commissioner no later than March 15 in the same odd-numbered year.

(d) The commissioner shall adjust the tax rate so that the revenues described in paragraph (a) equal or most closely exceed the expenditures in paragraph (b). The new rate must be rounded to the nearest one-quarter of one percent. The commissioner must post the new rate on the department website by April 1 of the same odd-numbered year. The new rate applies to sales and purchases made after June 30 of the same odd-numbered year."

Page 151, line 8, delete "subdivision 3, paragraph (c)" and insert "subdivision 4, paragraph (a)"

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Page 151, delete lines 12 to 14 and insert:

"(b) The tax imposed under this section does not apply to sales of medical items purchased by or for a patient enrolled in the registry program, including medical cannabis flower, medical cannabinoid products, or medical cannabis paraphernalia."

Page 151, after line 16, insert:

"Subd. 6. Local taxes prohibited. A political subdivision of this state is prohibited from imposing a local sales tax solely on the sale of taxable cannabis products."

Renumber the subdivisions in sequence

Page 151, line 19, delete "3" and insert "4"

Page 156, line 18, after "for" delete "a"

Page 156, line 19, delete "(q)" and insert "(r)"

Page 157, line 1, delete "(q)" and insert "(r)"

Page 158, line 14, delete "(q)" and insert "(r)"

Page 161, line 9, delete "(q)" and insert "(r)"

Page 161, delete section 13 and insert:

"Sec. 13. Minnesota Statutes 2022, section 297A.70, subdivision 4, is amended to read:

Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph (b), to the following "nonprofit organizations" are exempt:

(1) a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes if the item purchased is used in the performance of charitable, religious, or educational functions;

(2) any senior citizen group or association of groups that:

(i) in general limits membership to persons who are either age 55 or older, or persons with a physical disability;

(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit purposes, not including housing, no part of the net earnings of which inures to the benefit of any private shareholders; and

(iii) is an exempt organization under section 501(c) of the Internal Revenue Code; and

(3) an organization that qualifies for an exemption for memberships under subdivision 12 if the item is purchased and used in the performance of the organization's mission.

For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery owned by a religious organization.

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(b) This exemption does not apply to the following sales:

(1) building, construction, or reconstruction materials purchased by a contractor or a subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed maximum price covering both labor and materials for use in the construction, alteration, or repair of a building or facility;

(2) construction materials purchased by tax-exempt entities or their contractors to be used in constructing buildings or facilities that will not be used principally by the tax-exempt entities;

(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), ~~and~~ prepared food, candy, soft drinks, taxable cannabis products as defined under section 295.81, subdivision 1, paragraph (r), and alcoholic beverages as defined in section 297A.67, subdivision 2, except wine purchased by an established religious organization for sacramental purposes or as allowed under subdivision 9a; and

(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as provided in paragraph (c).

(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, only if the vehicle is:

(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a passenger automobile, as defined in section 168.002, if the automobile is designed and used for carrying more than nine persons including the driver; and

(2) intended to be used primarily to transport tangible personal property or individuals, other than employees, to whom the organization provides service in performing its charitable, religious, or educational purpose.

(d) A limited liability company also qualifies for exemption under this subdivision if (1) it consists of a sole member that would qualify for the exemption, and (2) the items purchased qualify for the exemption.

EFFECTIVE DATE. This section is effective for sales and purchases made after June 30, 2023."

Page 164, line 2, delete "(q)" and insert "(r)"

Page 164, line 25, delete "(r)" and insert "(s)"

Page 164, line 27, delete "(q)" and insert "(r)"

Page 165, delete section 16

Page 165, line 11, delete "(q)" and insert "(r)"

Page 224, after line 23, insert:

"Sec. 11. Minnesota Statutes 2022, section 152.22, is amended by adding a subdivision to read:

Subd. 5d. Indian lands. "Indian lands" means all lands within the limits of any Indian reservation within the boundaries of Minnesota and any lands within the boundaries of Minnesota, title to which are either held in trust by the United States or over which an Indian Tribe exercises governmental power.

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Sec. 12. Minnesota Statutes 2022, section 152.22, is amended by adding a subdivision to read:

Subd. 15. Tribal medical cannabis board. "Tribal medical cannabis board" means an agency established by each federally recognized Tribal government and duly authorized by that Tribe's governing body to perform regulatory oversight and monitor compliance with a Tribal medical cannabis program and applicable regulations.

Sec. 13. Minnesota Statutes 2022, section 152.22, is amended by adding a subdivision to read:

Subd. 16. Tribal medical cannabis program. "Tribal medical cannabis program" means a program established by a federally recognized Tribal government within the boundaries of Minnesota regarding the commercial production, processing, sale or distribution, and possession of medical cannabis and medical cannabis products.

Sec. 14. Minnesota Statutes 2022, section 152.22, is amended by adding a subdivision to read:

Subd. 17. Tribal medical cannabis program manufacturer. "Tribal medical cannabis program manufacturer" means an entity designated by a Tribal medical cannabis board within the boundaries of Minnesota or a federally recognized Tribal government within the boundaries of Minnesota to engage in production, processing, and sale or distribution of medical cannabis and medical cannabis products under that Tribe's Tribal medical cannabis program.

Sec. 15. Minnesota Statutes 2022, section 152.22, is amended by adding a subdivision to read:

Subd. 18. Tribal medical cannabis program patient. "Tribal medical cannabis program patient" means a person who possesses a valid registration verification card or equivalent document that is issued under the laws or regulations of a Tribal nation within the boundaries of Minnesota and that verifies that the person is enrolled in or authorized to participate in that Tribal nation's Tribal medical cannabis program.

Sec. 16. Minnesota Statutes 2022, section 152.29, subdivision 4, is amended to read:

Subd. 4. Report. (a) Each manufacturer shall report to the commissioner on a monthly basis the following information on each individual patient for the month prior to the report:

(1) the amount and dosages of medical cannabis distributed;

(2) the chemical composition of the medical cannabis; and

(3) the tracking number assigned to any medical cannabis distributed.

(b) For transactions involving Tribal medical cannabis program patients, each manufacturer shall report to the commissioner on a weekly basis the following information on each individual Tribal medical cannabis program patient for the week prior to the report:

(1) the name of the Tribal medical cannabis program in which the Tribal medical cannabis program patient is enrolled;

(2) the amount and dosages of medical cannabis distributed;

(3) the chemical composition of the medical cannabis distributed; and

(4) the tracking number assigned to the medical cannabis distributed.

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Sec. 17. Minnesota Statutes 2022, section 152.29, is amended by adding a subdivision to read:

Subd. 5. Distribution to Tribal medical cannabis program patient. (a) A manufacturer may distribute medical cannabis in accordance with subdivisions 1 to 4 to a Tribal medical cannabis program patient.

(b) Prior to distribution, the Tribal medical cannabis program patient must provide to the manufacturer:

(1) a valid medical cannabis registration verification card or equivalent document issued by a Tribal medical cannabis program that indicates that the Tribal medical cannabis program patient is authorized to use medical cannabis on Indian lands over which the Tribe has jurisdiction; and

(2) a valid photographic identification card issued by the Tribal medical cannabis program, a valid driver's license, or a valid state identification card.

(c) A manufacturer shall distribute medical cannabis to a Tribal medical cannabis program patient only in a form allowed under section 152.22, subdivision 6.

Sec. 18. [152.291] TRIBAL MEDICAL CANNABIS PROGRAM MANUFACTURER TRANSPORTATION.

(a) A Tribal medical cannabis program manufacturer may transport medical cannabis to testing laboratories in the state and to other Indian lands.

(b) A Tribal medical cannabis program manufacturer must staff a motor vehicle used to transport medical cannabis with at least two employees of the manufacturer. Each employee in the transport vehicle must carry identification specifying that the employee is an employee of the manufacturer, and one employee in the transport vehicle must carry a detailed transportation manifest that includes the place and time of departure, the address of the destination, and a description and count of the medical cannabis being transported.

Sec. 19. Minnesota Statutes 2022, section 152.30, is amended to read:

152.30 PATIENT DUTIES.

(a) A patient shall apply to the commissioner for enrollment in the registry program by submitting an application as required in section 152.27 and an annual registration fee as determined under section 152.35.

(b) As a condition of continued enrollment, patients shall agree to:

(1) continue to receive regularly scheduled treatment for their qualifying medical condition from their health care practitioner; and

(2) report changes in their qualifying medical condition to their health care practitioner.

(c) A patient shall only receive medical cannabis from a registered manufacturer or Tribal medical cannabis program but is not required to receive medical cannabis products from only a registered manufacturer or Tribal medical cannabis program.

Sec. 20. Minnesota Statutes 2022, section 152.32, is amended to read:

152.32 PROTECTIONS FOR REGISTRY PROGRAM OR TRIBAL MEDICAL CANNABIS PROGRAM PARTICIPATION.

Subdivision 1. Presumption. (a) There is a presumption that a patient enrolled in the registry program under sections 152.22 to 152.37 or a Tribal medical cannabis program patient is engaged in the authorized use of medical cannabis.

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(b) The presumption may be rebutted by evidence that:

(1) a patient's conduct related to use of medical cannabis was not for the purpose of treating or alleviating the patient's qualifying medical condition or symptoms associated with the patient's qualifying medical condition.; or

(2) a Tribal medical cannabis program patient's use of medical cannabis was not for a purpose authorized by the Tribal medical cannabis program.

Subd. 2. Criminal and civil protections. (a) Subject to section 152.23, the following are not violations under this chapter:

(1) use or possession of medical cannabis or medical cannabis products by a patient enrolled in the registry program~~, or~~; possession by a registered designated caregiver or the parent, legal guardian, or spouse of a patient if the parent, legal guardian, or spouse is listed on the registry verification; or use or possession of medical cannabis or medical cannabis products by a Tribal medical cannabis program patient;

(2) possession, dosage determination, or sale of medical cannabis or medical cannabis products by a medical cannabis manufacturer, employees of a manufacturer, a Tribal medical cannabis program manufacturer, employees of a Tribal medical cannabis program manufacturer, a laboratory conducting testing on medical cannabis, or employees of the laboratory; and

(3) possession of medical cannabis or medical cannabis products by any person while carrying out the duties required under sections 152.22 to 152.37.

(b) Medical cannabis obtained and distributed pursuant to sections 152.22 to 152.37 and associated property is not subject to forfeiture under sections 609.531 to 609.5316.

(c) The commissioner, members of a Tribal medical cannabis board, the commissioner's or Tribal medical cannabis board's staff, the commissioner's or Tribal medical cannabis board's agents or contractors, and any health care practitioner are not subject to any civil or disciplinary penalties by the Board of Medical Practice, the Board of Nursing, or by any business, occupational, or professional licensing board or entity, solely for ~~the~~ participation in the registry program under sections 152.22 to 152.37 or in a Tribal medical cannabis program. A pharmacist licensed under chapter 151 is not subject to any civil or disciplinary penalties by the Board of Pharmacy when acting in accordance with the provisions of sections 152.22 to 152.37. Nothing in this section affects a professional licensing board from taking action in response to violations of any other section of law.

(d) Notwithstanding any law to the contrary, the commissioner, the governor of Minnesota, or an employee of any state agency may not be held civilly or criminally liable for any injury, loss of property, personal injury, or death caused by any act or omission while acting within the scope of office or employment under sections 152.22 to 152.37.

(e) Federal, state, and local law enforcement authorities are prohibited from accessing the patient registry under sections 152.22 to 152.37 except when acting pursuant to a valid search warrant.

(f) Notwithstanding any law to the contrary, neither the commissioner nor a public employee may release data or information about an individual contained in any report, document, or registry created under sections 152.22 to 152.37 or any information obtained about a patient participating in the program, except as provided in sections 152.22 to 152.37.

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(g) No information contained in a report, document, or registry or obtained from a patient under sections 152.22 to 152.37 or from a Tribal medical cannabis program patient may be admitted as evidence in a criminal proceeding unless independently obtained or in connection with a proceeding involving a violation of sections 152.22 to 152.37.

(h) Notwithstanding section 13.09, any person who violates paragraph (e) or (f) is guilty of a gross misdemeanor.

(i) An attorney may not be subject to disciplinary action by the Minnesota Supreme Court, a Tribal court, or the professional responsibility board for providing legal assistance to prospective or registered manufacturers or others related to activity that is no longer subject to criminal penalties under state law pursuant to sections 152.22 to 152.37, or for providing legal assistance to a Tribal medical cannabis program or a Tribal medical cannabis program manufacturer.

(j) ~~Possession of a registry verification or application for enrollment in the program by a person entitled to possess or apply for enrollment in the registry program does~~ The following do not constitute probable cause or reasonable suspicion, ~~nor~~ and shall it not be used to support a search of the person or property of the person possessing or applying for the registry verification or equivalent, or otherwise subject the person or property of the person to inspection by any governmental agency.:

(1) possession of a registry verification or application for enrollment in the registry program by a person entitled to possess a registry verification or apply for enrollment in the registry program; or

(2) possession of a verification or equivalent issued by a Tribal medical cannabis program or application for enrollment in a Tribal medical cannabis program by a person entitled to possess such a verification or application.

Subd. 3. Discrimination prohibited. (a) No school or landlord may refuse to enroll or lease to and may not otherwise penalize a person solely for the person's status as a patient enrolled in the registry program under sections 152.22 to 152.37 or for the person's status as a Tribal medical cannabis program patient, unless failing to do so would violate federal law or regulations or cause the school or landlord to lose a monetary or licensing-related benefit under federal law or regulations.

(b) For the purposes of medical care, including organ transplants, a registry program enrollee's use of medical cannabis under sections 152.22 to 152.37, or a Tribal medical cannabis program patient's use of medical cannabis as authorized by the Tribal medical cannabis program, is considered the equivalent of the authorized use of any other medication used at the discretion of a physician, advanced practice registered nurse, or physician assistant and does not constitute the use of an illicit substance or otherwise disqualify a patient from needed medical care.

(c) Unless a failure to do so would violate federal law or regulations or cause an employer to lose a monetary or licensing-related benefit under federal law or regulations, an employer may not discriminate against a person in hiring, termination, or any term or condition of employment, or otherwise penalize a person, if the discrimination is based upon ~~either~~ any of the following:

(1) the person's status as a patient enrolled in the registry program under sections 152.22 to 152.37; or

(2) the person's status as a Tribal medical cannabis program patient; or

~~(2)~~ (3) a patient's positive drug test for cannabis components or metabolites, unless the patient used, possessed, or was impaired by medical cannabis on the premises of the place of employment or during the hours of employment.

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(d) An employee who is required to undergo employer drug testing pursuant to section 181.953 may present verification of enrollment in the patient registry or of enrollment in a Tribal medical cannabis program as part of the employee's explanation under section 181.953, subdivision 6.

(e) A person shall not be denied custody of a minor child or visitation rights or parenting time with a minor child solely based on the person's status as a patient enrolled in the registry program under sections 152.22 to 152.37, or on the person's status as a Tribal medical cannabis program patient. There shall be no presumption of neglect or child endangerment for conduct allowed under sections 152.22 to 152.37 or under a Tribal medical cannabis program, unless the person's behavior is such that it creates an unreasonable danger to the safety of the minor as established by clear and convincing evidence.

Sec. 21. Minnesota Statutes 2022, section 152.33, subdivision 1, is amended to read:

Subdivision 1. Intentional diversion; criminal penalty. In addition to any other applicable penalty in law, a manufacturer or an agent of a manufacturer who intentionally transfers medical cannabis to a person other than another registered manufacturer, a patient, a Tribal medical cannabis program patient, a registered designated caregiver or, if listed on the registry verification, a parent, legal guardian, or spouse of a patient is guilty of a felony punishable by imprisonment for not more than two years or by payment of a fine of not more than $3,000, or both. A person convicted under this subdivision may not continue to be affiliated with the manufacturer and is disqualified from further participation under sections 152.22 to 152.37."

Page 285, delete article 9 and insert:

"ARTICLE 9

IMPLEMENTATION; APPROPRIATIONS; TRANSFER

Section 1. OFFICE OF CANNABIS MANAGEMENT; IMPLEMENTATION.

(a) $3,000,000 in fiscal year 2023 is appropriated from the general fund to the commissioner of agriculture for the planning, research, analysis, and other efforts needed to establish the Office of Cannabis Management and transition programs, authorities, and responsibilities contained in Minnesota Statutes, chapter 342, to that office. This is a onetime appropriation and is available until June 30, 2025.

(b) Upon the effective date of this act, the commissioner of agriculture may exercise all authorities and responsibilities granted to the Office of Cannabis Management under Minnesota Statutes, chapter 342, that are necessary to establish the Office of Cannabis Management and transition programs, authorities, and responsibilities to that office.

(c) On or after January 1, 2024, and at such time the Office of Cannabis Management is able to fulfill the powers and duties enumerated in Minnesota Statutes, section 342.02, subdivision 2, the commissioner of agriculture may transfer all or some Minnesota Statutes, chapter 342, programs, authorities, and responsibilities to the Office of Cannabis Management. Upon such transfer, existing contracts, obligations, and funds managed by the commissioner of agriculture that are necessary to administer the transferred programs, authorities, or responsibilities shall be transferred to the Office of Cannabis Management.

(d) To the extent necessary to establish the Office of Cannabis Management and fulfill the powers and duties enumerated in Minnesota Statutes, section 342.02, the commissioner of agriculture and the Office of Cannabis Management are exempt from the requirements of Minnesota Statutes, section 16A.15, subdivision 3, and chapter 16C, and any other state procurement laws, rules, and procedures. This exemption expires on July 1, 2025.

EFFECTIVE DATE. This section is effective the day following final enactment.

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Sec. 2. APPROPRIATIONS; TRANSFER.

Subdivision 1. Office of Cannabis Management. (a) $20,814,000 in fiscal year 2024 and $17,260,000 in fiscal year 2025 are appropriated from the general fund to the Office of Cannabis Management for purposes of this act. The base for this appropriation is $31,787,000 in fiscal year 2026 and $42,344,00 in fiscal year 2027.

(b) Of the base established in paragraph (a), $12,000,000 in fiscal year 2026 and $20,000,000 in fiscal year 2027 are for cannabis industry community renewal grants. Of these amounts, up to three percent may be used for administrative expenses.

(c) Of the base established in paragraph (a), $1,000,000 in fiscal year 2026 and $1,000,000 in fiscal year 2027 are for grants issued pursuant to Minnesota Statutes, section 342.73, to eligible organizations to help farmers navigate the regulatory structure of the legal cannabis industry and to nonprofit corporations to fund loans to farmers for expansion into the legal cannabis industry. Of these amounts, up to three percent may be used for administrative expenses.

Subd. 2. Substance use treatment, recovery, and prevention grant account; transfer. Money for substance use treatment, recovery, and prevention is transferred from the general fund to the substance use treatment, recovery, and prevention grant account established under Minnesota Statutes, section 342.72. The transfer is $4,000,000 in fiscal years 2024 and 2025. The base for this transfer is $12,000,000 in fiscal year 2026 and $16,000,000 in fiscal year 2027.

Subd. 3. Office of Cannabis Management; extension and research grants. (a) $100,000 in fiscal year 2024 and $100,000 in fiscal year 2025 are appropriated from the general fund to the Office of Cannabis Management for grants to the University of Minnesota for cannabis genetics and agronomy research. The base for this appropriation is $750,000 in fiscal year 2026 and beyond.

(b) Projects involving cannabis genetics and agronomy research that are not currently receiving financial support from the University of Minnesota are eligible for grants under this section. Grant money must be used for the creation and maintenance of a University of Minnesota Extension position and a postdoctoral position.

(c) In awarding grants, the Office of Cannabis Management must give priority to applications by researchers who would be eligible to be social equity applicants as defined in Minnesota Statutes, section 342.16.

Subd. 4. Department of Agriculture. $411,000 in fiscal year 2024 and $411,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of agriculture to provide consultation services and assist the Office of Cannabis Management with licensing, inspection, enforcement, laboratory services, surveillance of retail sales, outreach, and grants to farmers, and to perform other duties as required by this act. The base for this appropriation is $338,000 in fiscal year 2026 and beyond.

Subd. 5. Attorney General. $358,000 in fiscal year 2024 and $358,000 in fiscal year 2025 are appropriated from the general fund to the attorney general for costs associated with the Cannabis Expungement Board, including but not limited to reviewing records, conducting interviews, drafting subpoenas, moving the court for orders to compel, and drafting memoranda. The base in fiscal year 2029 and thereafter is $0.

Subd. 6. Cannabis Expungement Board. $4,880,000 in fiscal year 2024 and $4,687,000 in fiscal year 2025 are appropriated from the general fund to the Cannabis Expungement Board for staffing and other expenses related to reviewing criminal convictions and issuing decisions related to expungement and resentencing. The base for this appropriation is $4,687,000 in fiscal years 2026, 2027, and 2028. The base in fiscal year 2029 and thereafter is $0.

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Subd. 7. Department of Commerce. $527,000 in fiscal year 2024 and $1,093,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of commerce for the purposes of this act. The base for this appropriation is $1,341,000 in fiscal year 2026 and $1,520,000 in fiscal year 2027.

Subd. 8. Department of Corrections. An appropriation to the commissioner of corrections for correctional institutions is reduced by $165,000 in fiscal year 2024 and $368,000 in fiscal year 2025. The base for this appropriation is reduced by $460,000 in fiscal year 2026 and $503,000 in fiscal year 2027.

Subd. 9. Department of Education. $180,000 in fiscal year 2024 and $120,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of education for the purposes of this act.

Subd. 10. Department of Employment and Economic Development. (a) $10,400,000 in fiscal year 2024 and $6,700,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of employment and economic development for the CanStartup, CanNavigate, and CanTrain programs. Any unencumbered balances remaining in the first year do not cancel but are available for the second year.

(b) Of the amount appropriated under paragraph (a), $4,000,000 in fiscal year 2024 and $2,619,000 in fiscal year 2025 are for the CanStartup program.

(c) Of the amount appropriated under paragraph (a), $2,000,000 in fiscal year 2024 and $1,884,000 in fiscal year 2025 are for the CanNavigate program.

(d) Of the amount appropriated under paragraph (a), $4,400,000 in fiscal year 2024 and $2,197,000 in fiscal year 2025 are for the CanTrain program.

(e) Of these amounts, up to four percent may be used for administrative expenses.

Subd. 11. Department of Health. (a) $9,680,000 in fiscal year 2024 and $18,186,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of health for the purposes of this act.

(b) Of the amount appropriated under paragraph (a), $1,674,000 in fiscal year 2024 and $1,674,000 in fiscal year 2025 are for education for women who are pregnant, breastfeeding, or who may become pregnant. Of this amount, $1,000,000 each year is for media campaign contracts. The base for this appropriation is $3,174,000 in fiscal year 2026 and thereafter. Of the amounts appropriated in fiscal year 2026 and thereafter, $2,500,000 is for media campaign contracts.

(c) Of the amount appropriated under paragraph (a), $330,000 in fiscal year 2024 and $277,000 in fiscal year 2025 are for data collection and reports. The base for this appropriation is $227,000 in fiscal year 2026 and $277,000 in fiscal year 2027.

(d) Of the amount appropriated under paragraph (a), $719,000 in fiscal year 2024 and $771,000 in fiscal year 2025 are for testing required by this act. The base for this appropriation is $690,000 in fiscal year 2026 and thereafter.

(e) Of the amount appropriated under paragraph (a), $2,998,000 in fiscal year 2024 and $2,998,000 in fiscal year 2025 are for education for youth. Of this amount, $1,000,000 each year is for statewide youth awareness campaign contracts. The base for this appropriation is $4,498,000 in fiscal year 2026 and thereafter. Of the amounts in fiscal year 2026 and thereafter, $2,500,000 is for media campaign contracts.

(f) Of the amount appropriated under paragraph (a), $9,000,000 in fiscal year 2025 is for grants to local health departments for: (1) creation and dissemination of educational materials on cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products; and (2) community education, technical

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assistance, and outreach on prevention and safe use regarding cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products. The commissioner shall distribute these grants according to a contract with the Local Public Health Association of Minnesota. Of the appropriations in this paragraph, the commissioner may withhold up to ten percent for grant administration and technical assistance to local health departments.

(g) Of the amount appropriated under paragraph (a), $1,000,000 in fiscal year 2025 is for grants to Tribal health departments for: (1) creation and dissemination of educational materials on cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products; and (2) community education, technical assistance, and outreach on prevention and safe use regarding cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products. Of the appropriations in this paragraph, the commissioner may withhold up to ten percent for grant administration and technical assistance to Tribal health departments.

Subd. 12. Department of Health; Minnesota Poison Control System. $910,000 in fiscal year 2024 and $810,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of health to support the Poison Control System and award or supplement grants pursuant to Minnesota Statutes, section 145.93.

Subd. 13. Department of Human Services. (a) $1,566,000 in fiscal year 2024 and $1,420,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of human services for the purposes of this act. The base for this appropriation is $1,420,000 in fiscal years 2026, 2027, and 2028. The base in fiscal year 2029 and thereafter is $225,000.

(b) Of the amount appropriated under paragraph (a), $1,043,000 in fiscal year 2024 and $1,195,000 in fiscal year 2025 are for the Background Studies Legal Division. The base for this appropriation is $1,195,000 in fiscal years 2026, 2027, and 2028. The base in fiscal year 2029 and thereafter is $0.

(c) Of the amount appropriated under paragraph (a), $322,000 in fiscal year 2024 is for technology system changes. This is a onetime appropriation.

(d) Of the amount appropriated under paragraph (a), $201,000 in fiscal year 2024 and $225,000 in fiscal year 2025 are for costs associated with the Substance Use Disorder Advisory Council.

Subd. 14. Department of Labor and Industry. $116,000 in fiscal year 2024 and $123,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of labor and industry to identify occupational competency standards and provide technical assistance for developing dual-training programs under Minnesota Statutes, section 175.45, for the legal cannabis industry.

Subd. 15. Department of Natural Resources. $338,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of natural resources for the purposes of this act. This is a onetime appropriation.

Subd. 16. Office of Higher Education. $1,000,000 in fiscal year 2024 and $1,000,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of higher education for transfer to the dual training account in the special revenue fund under Minnesota Statutes, section 136A.246, subdivision 10, for grants to employers in the legal cannabis industry. The commissioner shall give priority to applications from employers who are, or who are training employees who are, eligible to be social equity applicants under Minnesota Statutes, section 342.16. After June 30, 2025, any unencumbered balance from this appropriation may be used for grants to any eligible employer under Minnesota Statutes, section 136A.246.

Subd. 17. Pollution Control Agency. (a) $140,000 in fiscal year 2024 and $70,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of the Pollution Control Agency for the purposes of this act.

(b) Of the amount appropriated under paragraph (a), $70,000 in fiscal year 2024 is for wastewater staff. This is a onetime appropriation.

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(c) Of the amount appropriated under paragraph (a), $70,000 in fiscal year 2024 and $70,000 in fiscal year 2025 are for small business assistance staff.

Subd. 18. Department of Public Safety; Bureau of Criminal Apprehension. (a) $7,945,000 in fiscal year 2024 and $4,543,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of public safety for use by the Bureau of Criminal Apprehension. The base for this appropriation is $3,551,000 in fiscal years 2026, 2027, and 2028. The base in fiscal year 2029 and thereafter is $1,495,000.

(b) Of the amount appropriated under paragraph (a), $992,000 in fiscal year 2024 and $992,000 in fiscal year 2025 are for expenses related to identifying and providing records of convictions for certain offenses involving the possession of cannabis that may be eligible for expungement and resentencing. The base for this appropriation is $992,000 in fiscal years 2026, 2027, and 2028. The base in fiscal year 2029 and thereafter is $0.

(c) Of the amount appropriated under paragraph (a), $1,766,000 in fiscal year 2024 and $1,240,000 in fiscal year 2025 are for forensic science services including additional staff, equipment, and supplies.

(d) Of the amount appropriated under paragraph (a), $255,000 in fiscal year 2024 and $255,000 in fiscal year 2025 are for investigation of diversion crimes.

Subd. 19. Department of Public Safety; Office of Traffic Safety. (a) $1,620,000 in fiscal year 2024 and $1,117,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of public safety for use by the Office of Traffic Safety.

(b) Of the amount appropriated under paragraph (a), $125,000 in fiscal year 2024 and $125,000 in fiscal year 2025 are for a statewide impaired driving coordinator with a specific focus on cannabis and other drug driving issues.

(c) Of the amount appropriated under paragraph (a), $1,495,000 in fiscal year 2024 and $992,000 in fiscal year 2025 are to support oral fluid roadside testing.

Subd. 20. Department of Public Safety; State Patrol. $6,157,000 in fiscal year 2024 and $2,218,000 in fiscal year 2025 are appropriated from the trunk highway fund to the commissioner of public safety for use by the Minnesota State Patrol for the purposes of this act, including but not limited to replacing drug detection canines, providing accident reconstruction services, identifying and investigating incidents and offenses that involve driving under the influence, and sealing expunged records.

Subd. 21. Department of Public Safety; State Patrol. $10,000,000 in fiscal year 2024 and $5,000,000 in fiscal year 2025 are appropriated from the general fund to the Minnesota State Patrol for its drug evaluation and classification program for drug recognition evaluator training; additional phlebotomists; drug recognition training for peace officers, as defined in Minnesota Statutes, section 626.84, subdivision 1, paragraph (c); and required continuing education training for drug recognition experts.

Subd. 22. Department of Revenue. $3,709,000 in fiscal year 2024 and $3,145,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of revenue for the purposes of this act. The base for this appropriation is $3,157,000 in fiscal year 2026 and beyond.

Subd. 23. Supreme court. $545,000 in fiscal year 2024 and $545,000 in fiscal year 2025 are appropriated from the general fund to the supreme court for reviewing records and issuing orders related to the expungement or resentencing of certain cannabis offenses. The base for this appropriation is $0 in fiscal year 2026 and thereafter.

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ARTICLE 10

GRANTS MANAGEMENT

Section 1. FINANCIAL REVIEW OF NONPROFIT GRANT RECIPIENTS REQUIRED.

Subdivision 1. Financial review required. (a) Before awarding a competitive, legislatively named, single‑source, or sole-source grant to a nonprofit organization under this act, the grantor must require the applicant to submit financial information sufficient for the grantor to document and assess the applicant's current financial standing and management. Items of significant concern must be addressed with the applicant and resolved to the satisfaction of the grantor before a grant is awarded. The grantor must document the material requested and reviewed; whether the applicant had a significant operating deficit, a deficit in unrestricted net assets, or insufficient internal controls; whether and how the applicant resolved the grantor's concerns; and the grantor's final decision. This documentation must be maintained in the grantor's files.

(b) At a minimum, the grantor must require each applicant to provide the following information:

(1) the applicant's most recent Form 990, Form 990-EZ, or Form 990-N filed with the Internal Revenue Service. If the applicant has not been in existence long enough or is not required to file Form 990, Form 990-EZ, or Form 990-N, the applicant must demonstrate to the grantor that the applicant is exempt and must instead submit documentation of internal controls and the applicant's most recent financial statement prepared in accordance with generally accepted accounting principles and approved by the applicant's board of directors or trustees, or if there is no such board, by the applicant's managing group;

(2) evidence of registration and good standing with the secretary of state under Minnesota Statutes, chapter 317A, or other applicable law;

(3) unless exempt under Minnesota Statutes, section 309.515, evidence of registration and good standing with the attorney general under Minnesota Statutes, chapter 309; and

(4) if required under Minnesota Statutes, section 309.53, subdivision 3, the applicant's most recent audited financial statement prepared in accordance with generally accepted accounting principles.

Subd. 2. Authority to postpone or forgo; reporting required. (a) Notwithstanding any contrary provision in this act, a grantor that identifies an area of significant concern regarding the financial standing or management of a legislatively named applicant may postpone or forgo awarding the grant.

(b) No later than 30 days after a grantor exercises the authority provided under paragraph (a), the grantor must report to the chairs and ranking minority members of the legislative committees with jurisdiction over the grantor's operating budget. The report must identify the legislatively named applicant and the grantor's reason for postponing or forgoing the grant.

Subd. 3. Authority to award subject to additional assistance and oversight. A grantor that identifies an area of significant concern regarding an applicant's financial standing or management may award a grant to the applicant if the grantor provides or the grantee otherwise obtains additional technical assistance, as needed, and the grantor imposes additional requirements in the grant agreement. Additional requirements may include but are not limited to enhanced monitoring, additional reporting, or other reasonable requirements imposed by the grantor to protect the interests of the state.

Subd. 4. Relation to other law and policy. The requirements in this section are in addition to any other requirements imposed by law; the commissioner of administration under Minnesota Statutes, sections 16B.97 and 16B.98; or agency policy."

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Renumber the sections in sequence and correct the internal references

Correct the title numbers accordingly

With the recommendation that when so amended the bill be placed on the General Register.

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. No. 100 was read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Franson, Knudsen, Altendorf, Harder, Fogelman, Petersburg, Dotseth and Zeleznikar introduced:

H. F. No. 3264, A bill for an act relating to health; providing criminal penalties for health care practitioners who perform or cause to be performed specified practices on a minor under certain conditions; proposing coding for new law in Minnesota Statutes, chapter 145.

The bill was read for the first time and referred to the Committee on Health Finance and Policy.

Igo, Davis, Knudsen, Nash, Zeleznikar, Engen, Mekeland, Joy, Pfarr, Murphy, Perryman, Schultz, Bliss, Skraba, Wiener, Dotseth and Heintzeman introduced:

H. F. No. 3265, A bill for an act relating to capital investment; appropriating money for a grant to Forgotten Heroes Ranges and Retreat.

The bill was read for the first time and referred to the Committee on Capital Investment.

Torkelson, Engen, Demuth, Perryman, Nash, Dotseth, O'Driscoll, Harder, Knudsen, Jacob, Davis, Murphy, Grossell, Heintzeman, Niska, Petersburg, Franson, Joy, Pfarr and Novotny introduced:

H. F. No. 3266, A bill for an act relating to state government; prohibiting use of the governor's residence for certain political activities; amending Minnesota Statutes 2022, section 16B.27, subdivision 1.

The bill was read for the first time and referred to the Committee on State and Local Government Finance and Policy.

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O'Driscoll; Demuth; Perryman; Heintzeman; Johnson; Witte; Wiener; Mekeland; Harder; Burkel; Anderson, P. H.; Jacob; Pfarr; Myers; Backer; Altendorf; Anderson, P. E.; Fogelman; Olson, B.; Zeleznikar; Knudsen; Bennett; Hudella; Dotseth; Nadeau; Robbins; Engen; Scott; Murphy; Wiens; Skraba; Davids; Petersburg; Baker and Quam introduced:

H. F. No. 3267, A bill for an act relating to youth employment; modifying requirements for 16- and 17-year-olds working in or about a construction or building project; requiring rulemaking.

The bill was read for the first time and referred to the Committee on Labor and Industry Finance and Policy.

Bahner, Elkins, Her, Reyer and Bierman introduced:

H. F. No. 3268, A bill for an act relating to insurance; requiring a prior authorization report; proposing coding for new law in Minnesota Statutes, chapter 62M.

The bill was read for the first time and referred to the Committee on Commerce Finance and Policy.

Bakeberg introduced:

H. F. No. 3269, A bill for an act relating to capital investment; appropriating money to line a drainage pipe through the Prior Lake Outlet Channel; authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Capital Investment.

Frederick introduced:

H. F. No. 3270, A bill for an act relating to capital investment; appropriating money for the city of Skyline to replace water infrastructure; authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Capital Investment.

Daniels, Johnson, Burkel, Bliss, Baker, Backer, Novotny, Knudsen, Davis and Harder introduced:

H. F. No. 3271, A bill for an act relating to health; establishing the William Shegstad Healthcare Advocates Act; providing civil penalties; proposing coding for new law in Minnesota Statutes, chapter 144.

The bill was read for the first time and referred to the Committee on Health Finance and Policy.

Kresha; Demuth; Torkelson; Zeleznikar; Anderson, P. H.; Grossell; Urdahl; Niska and Anderson, P. E., introduced:

H. F. No. 3272, A bill for an act relating to education finance; providing funding for prekindergarten through grade 12 education; modifying provisions for general education, literacy and learning, special education, education innovation, and education excellence; making forecast adjustments; requiring reports; appropriating money; amending Minnesota Statutes 2022, sections 120B.024, subdivision 1; 120B.12; 121A.031, subdivision 1; 122A.092, subdivision 5; 122A.18, subdivision 7a, by adding a subdivision; 122A.185, subdivision 1; 122A.187,

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subdivision 5; 122A.31, subdivision 1; 123B.86, subdivision 3; 124D.085; 124D.09, subdivisions 5, 12; 124D.093, subdivisions 3, 4; 124D.98, by adding a subdivision; 124E.11; 125A.76, subdivision 2e; 126C.10, subdivisions 2, 18a; 126C.44; 127A.05, by adding subdivisions; 127A.353, subdivisions 2, 4; 144.4165; Laws 2017, First Special Session chapter 5, article 2, section 52; Laws 2021, First Special Session chapter 13, article 1, section 10, subdivisions 2, 3, 4, 5, 6, 7, 9; article 2, section 4, subdivisions 2, 3, 4, 12, 27; article 3, section 7, subdivision 7; article 5, section 3, subdivisions 2, 3, 4; article 7, section 2, subdivisions 2, 3; article 8, section 3, subdivisions 2, 3, 4; article 9, section 4, subdivisions 5, 6, 12; article 10, section 1, subdivisions 2, 8; proposing coding for new law in Minnesota Statutes, chapters 120B; 122A; 124D; 125A; repealing Minnesota Statutes 2022, section 122A.06, subdivision 4; Laws 2017, First Special Session chapter 5, article 2, section 52, subdivision 3.

The bill was read for the first time and referred to the Committee on Education Finance.

Long moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by the Speaker.

REPORT FROM THE COMMITTEE ON RULES

AND LEGISLATIVE ADMINISTRATION

Long from the Committee on Rules and Legislative Administration, pursuant to rules 1.21 and 3.33, designated the following bills to be placed on the Calendar for the Day for Friday, April 21, 2023 and established a prefiling requirement for amendments offered to the following bills:

H. F. Nos. 717, 2950, 3100, 24, 1510 and 1960.

There being no objection, the order of business advanced to Motions and Resolutions.

MOTIONS AND RESOLUTIONS

Hemmingsen-Jaeger was excused between the hours of 1:30 p.m. and 3:35 p.m.

TAKEN FROM THE TABLE

Long moved that H. F. No. 2887, the third engrossment, as amended, be taken from the table. The motion prevailed.

H. F. No. 2887 was reported to the House.

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Hudella moved to amend H. F. No. 2887, the third engrossment, as amended, as follows:

Page 44, after line 17, insert:

"Section 1. Minnesota Statutes 2022, section 163.051, subdivision 1, is amended to read:

Subdivision 1. Tax authorized. (a) Except as provided in paragraph (c), the board of commissioners of each county is authorized to levy by resolution a wheelage tax at the rate specified in paragraph (b), on each motor vehicle that is kept in such county when not in operation and that is subject to annual registration and taxation under chapter 168. The board may provide by resolution for collection of the wheelage tax by county officials or it may request that the tax be collected by the state registrar of motor vehicles. The state registrar of motor vehicles shall collect such tax on behalf of the county if requested, as provided in subdivision 2.

(b) The wheelage tax under this section is at the rate of up to $20 per year, in any increment of a whole dollar, as specified by each county that authorizes the tax.

(1) motorcycles, as defined in section 169.011, subdivision 44;

(2) motorized bicycles, as defined in section 169.011, subdivision 45; ~~and~~

(3) motorized foot scooters, as defined in section 169.011, subdivision 46.; and

(4) vehicles that meet the requirements under section 168.012, subdivision 13.

(d) For any county that authorized the tax prior to May 24, 2013, the wheelage tax continues at the rate provided under paragraph (b).

EFFECTIVE DATE. This section is effective the day following final enactment and applies to taxes payable for a registration period starting on or after January 1, 2024.

Sec. 2. Minnesota Statutes 2022, section 168.012, is amended by adding a subdivision to read:

Subd. 13. Vehicles registered by certain veterans. (a) A passenger automobile, one-ton pickup truck, motorcycle, or recreational vehicle registered by a veteran with a total service-connected disability, as defined in section 171.01, subdivision 51, is not subject to:

(1) registration taxes under this chapter;

(2) administrative fees imposed under subdivision 1c;

(3) filing fees imposed under section 168.33, subdivision 7; or

(4) plate and validation sticker fees imposed under this chapter, including but not limited to:

(i) fees under section 168.12, subdivision 5;

(ii) fees identified in any section authorizing special plates; and

(iii) transfer fees.

(b) The exemptions under this subdivision apply to a motor vehicle that is jointly registered by a qualifying veteran and a spouse or domestic partner.

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(1) a fee for personalized plates under section 168.12, subdivision 2a; or

(2) a required contribution or donation for a special plate, including but not limited to a contribution under sections 168.1255, subdivision 1, clause (6); 168.129, subdivision 1, clause (5); 168.1295, subdivision 1, paragraph (a), clause (5); 168.1296, subdivision 1, paragraph (a), clause (5); and 168.1299, subdivision 1, clause (3).

(d) A qualifying veteran may register no more than two motor vehicles at the same time with the exemptions under this subdivision. Nothing in this paragraph prevents registration of additional motor vehicles as otherwise provided in this chapter.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to taxes and fees payable for a registration period starting on or after January 1, 2024."

Page 47, after line 16, insert:

"Sec. 6. Minnesota Statutes 2022, section 168A.29, is amended by adding a subdivision to read:

Subd. 4. Exemption; vehicles for certain veterans. The department must not impose any fee under subdivision 1 if the certificate of title is being issued to a person and for a vehicle that meets the requirements under section 168.012, subdivision 13.

EFFECTIVE DATE. This section is effective January 1, 2024."

Page 50, after line 20, insert:

"Sec. 12. Minnesota Statutes 2022, section 171.01, is amended by adding a subdivision to read:

Subd. 51. Veteran with a total service-connected disability. "Veteran with a total service-connected disability" means a veteran, as defined in section 197.447, who provides to the commissioner satisfactory evidence that: (1) is issued by the Department of Veterans Affairs, the United States Veterans Administration, or the retirement board of one of the several branches of the armed forces; and (2) demonstrates that the veteran has received a 100 percent total and permanent service-connected disability rating.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 13. Minnesota Statutes 2022, section 171.06, is amended by adding a subdivision to read:

Subd. 2c. Exemption; certain veterans. For an applicant who is a veteran with a total service-connected disability, the commissioner must not impose:

(1) a license or endorsement fee, including fees and surcharges specified under:

(i) subdivisions 2 and 2a; and

(ii) section 171.02, subdivision 3;

(2) a filing fee under subdivision 2 or section 171.061, subdivision 4; or

(3) a fee for an identification card under section 171.07, subdivision 3 or 3a.

EFFECTIVE DATE. This section is effective January 1, 2024."

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Page 57, after line 23, insert:

"Sec. 21. Minnesota Statutes 2022, section 297B.03, is amended to read:

297B.03 EXEMPTIONS.

There is specifically exempted from the provisions of this chapter and from computation of the amount of tax imposed by it the following:

(1) purchase or use, including use under a lease purchase agreement or installment sales contract made pursuant to section 465.71, of any motor vehicle by the United States and its agencies and instrumentalities and by any person described in and subject to the conditions provided in section 297A.67, subdivision 11;

(2) purchase or use of any motor vehicle by any person who was a resident of another state or country at the time of the purchase and who subsequently becomes a resident of Minnesota, provided the purchase occurred more than 60 days prior to the date such person began residing in the state of Minnesota and the motor vehicle was registered in the person's name in the other state or country;

(3) purchase or use of any motor vehicle by any person making a valid election to be taxed under the provisions of section 297A.90;

(4) purchase or use of any motor vehicle previously registered in the state of Minnesota when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Code, as amended through December 16, 2016;

(5) purchase or use of any vehicle owned by a resident of another state and leased to a Minnesota-based private or for-hire carrier for regular use in the transportation of persons or property in interstate commerce provided the vehicle is titled in the state of the owner or secured party, and that state does not impose a sales tax or sales tax on motor vehicles used in interstate commerce;

(6) purchase or use of a motor vehicle by a private nonprofit or public educational institution for use as an instructional aid in automotive training programs operated by the institution. "Automotive training programs" includes motor vehicle body and mechanical repair courses but does not include driver education programs;

(7) purchase of a motor vehicle by an ambulance service licensed under section 144E.10 when that vehicle is equipped and specifically intended for emergency response or for providing ambulance service;

(8) purchase of a motor vehicle by or for a public library, as defined in section 134.001, subdivision 2, as a bookmobile or library delivery vehicle;

(9) purchase of a ready-mixed concrete truck;

(10) purchase or use of a motor vehicle by a town for use exclusively for road maintenance, including snowplows and dump trucks, but not including automobiles, vans, or pickup trucks;

(11) purchase or use of a motor vehicle by a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes, except a public school, university, or library, but only if the vehicle is:

(i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a passenger automobile, as defined in section 168.002, if the automobile is designed and used for carrying more than nine persons including the driver; and

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(ii) intended to be used primarily to transport tangible personal property or individuals, other than employees, to whom the organization provides service in performing its charitable, religious, or educational purpose;

(12) purchase of a motor vehicle for use by a transit provider exclusively to provide transit service is exempt if the transit provider is either (i) receiving financial assistance or reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29, 473.388, or 473.405;

(13) purchase or use of a motor vehicle by a qualified business, as defined in section 469.310, located in a job opportunity building zone, if the motor vehicle is principally garaged in the job opportunity building zone and is primarily used as part of or in direct support of the person's operations carried on in the job opportunity building zone. The exemption under this clause applies to sales, if the purchase was made and delivery received during the duration of the job opportunity building zone. The exemption under this clause also applies to any local sales and use tax;

(14) purchase of a leased vehicle by the lessee who was a participant in a lease-to-own program from a charitable organization that is:

(i) described in section 501(c)(3) of the Internal Revenue Code; and

(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; ~~and~~

(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the provision of medical or dental services by a federally qualified health center, as defined under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus Budget Reconciliation Act of 1990.; and

(16) purchase of a motor vehicle by a veteran having a total service-connected disability, as defined in section 171.01, subdivision 51.

EFFECTIVE DATE. This section is effective for sales and purchases made after June 30, 2024."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Petersburg moved to amend H. F. No. 2887, the third engrossment, as amended, as follows:

Page 101, line 18, after the period, insert "The climate action chapter must also include policies that describe how activities related to meeting greenhouse gas emissions-reduction goals may interact with labor conditions in countries other than the United States of America where critical materials are mined for use in renewable energy or electric vehicle products. For the purpose of this paragraph, "labor conditions" includes, but is not limited to, slave labor, child labor, livable wages, human trafficking, and sexual assault."

The motion prevailed and the amendment was adopted.

Journal of the House - 52nd Day - Wednesday, April 19, 2023 - Top of Page 5498

Petersburg moved to amend H. F. No. 2887, the third engrossment, as amended, as follows:

Page 5, line 28, delete "197,121,000" and insert "2,821,000"

Page 5, delete lines 32 and 33

Page 6, delete lines 1 to 18

Page 15, after line 28, insert:

"(6) Local Street Pothole Maintenance

44,000,000

-0-

This appropriation is from the general fund for grants to counties and statutory and home rule charter cities having a population of 100,000 or less to perform local road maintenance that is targeted to pothole repairs."

Page 53, line 11, after the second comma, insert "and June 30, 2025, the commissioner must deposit $21,147,000 monthly in the highway user tax distribution fund, and between July 1, 2025,"

Adjust amounts accordingly

A roll call was requested and properly seconded.

Backer moved to amend the Petersburg amendment to H. F. No. 2887, the third engrossment, as amended, as follows:

Page 1, after line 4, insert:

"Page 14, line 14, delete "51,000" and insert "20,051,000""

Page 1, after line 12, insert:

"Page 31, line 26, delete "and"

Page 31, line 28, delete the period and insert "; and"

Page 31, after line 28, insert:

"(3) $20,000,000 for deposit in the town road account in the county state-aid highway fund.""

Page 1, line 14, delete "$21,147,000" and insert "$20,316,000"

Adjust amounts accordingly

A roll call was requested and properly seconded.

Journal of the House - 52nd Day - Wednesday, April 19, 2023 - Top of Page 5499

The question was taken on the Backer amendment to the Petersburg amendment and the roll was called. There were 60 yeas and 68 nays as follows:

Those who voted in the affirmative were: