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Note: The Senate Information Office has toll-free telephone numbers to enable citizens of Greater Minnesota to obtain general information about the Minnesota Senate. The telephone numbers are: 1-888-234-1112 (voice) and 1-888-234-1216 (TTY).
Update: March 22, 2004 4:15 p.m.
Members also approved the appointments of Mahesh Kumar and John P. Whitten to the Board of Animal Health. The appointments of Lisa Heggedahl and Julian Sjostrom to the Minnesota Rural Finance Agency were also approved. All the appointments now go to the full Senate for confirmation.
S.F. 1691, authored by Sen. Steve Dille (R-Dassel), authorizes temporary and specialty faculty licenses for veterinarians who practice at the University of Minnesota Veterinary Medical Center. S.F. 2481, also sponsored by Dille, modifies provisions relating to county and regional fairs. S.F. 2731, carried by Vickerman, changes the amount of grain buyers bonds. The measure specifies the increase applies to grain buyers whose gross annual purchases are more than $3 million. S.F. 2741, also carried by Vickerman, makes changes to farm trust and corporate farm law. Members also adopted amendments offered by Sen. Becky Lourey (DFL-Kerrick) and Sen. David Hann (R-Eden Prairie). The Lourey amendment modifies the requirement for public meetings held by the Metropolitan Mosquito Control District for notification purposes. The Hann amendment makes changes to Rural Finance Authority loan programs to expand the availability of loans for agriculture. Members also adopted an amendment, offered by Dille, providing encouragement for farmers to earn a fair living from farming. The omnibus bill, S.F. 2428, was approved and sent to the Senate floor.
Members also approved a bill, S.F. 2145, appropriating $23 million for conservation easements under the CREP program. The measure, sponsored by Sen. Rod Skoe (DFL-Clearbrook), provides that preventing flood damage be included among the purposes of keeping marginal agricultural land out of crop production. In additional, the bill clarifies that conservation easement may permit cutting hay and control of noxious weeds. The measure was approved and re-referred to the Environment and Natural Resources Committee.
S.F. 2866, also carried by Skoe, limits nuisance claims against certain agricultural operations. The measure was approved and advanced to the Judiciary Committee.
A bill, S.F. 2756, clarifying the basis on which food can be labeled as kosher, was also approved and advanced to the Judiciary Committee. The bill, sponsored by Sen. Richard Cohen (DFL-St. Paul), changes the term "orthodox Hebrew" to "Jewish" in the statutes dealing with the requirements for labeling food kosher.
Finally, members also approved a bill, S.F. 2626, providing that the commissioner of administration may, upon the request of the Minnesota Veterans Homes Board, enter into a ground lease of state-owned property on the campus of the Minnesota Veterans Home-Hastings. The measure, sponsored by Sen. Sharon Marko (DFL-Cottage Grove), was recommended for placement on the Consent Calendar.
S.F. 1583, sponsored by Sen. Charles "Chuck" Wiger (DFL-North St. Paul), and S.F. 1796, sponsored by Sen. Dennis Frederickson (R-New Ulm), both had a similar goal. Members adopted an amendment to S.F. 1796 permitting licensed veterans organizations to use gross profits from lawful gambling to send up to two World War II veterans per local organization to Washington D.C., for the dedication events of the National World War II Memorial this May. S.F. 1796 was approved and laid over for inclusion in an omnibus bill.
S.F. 2435, authored by Vickerman, makes a number of changes to lawful gambling provisions. The measure also includes the language from S.F. 1796. The bill was approved and advanced to the Senate floor.
The committee also approved a bill, S.F. 1766, relating to ethanol producer disclosure. The measure, sponsored by Vickerman, specifies that annually, within 90 days of the end of its fiscal year, an ethanol producer receiving payments must file a disclosure statement on a form provided by the commissioner. The bill also specifies that the initial disclosure must include a summary description of the organization of the business structure, a listing of the percentages of ownership by any person or entity with an ownership interest of five percent or more and a copy of its annual audited financial statements, including the auditor's report and footnotes. Under the bill, the disclosure statement must include information demonstrating what percentage of the entity receiving payments is owned by farmers eligible to farm or own Minnesota agricultural land. Subsequent annual reports must reflect noncumulative changes in ownership of ten percent or more. The bill also provides that no later than 60 days after the bill becomes law, the commissioner must pay any producer denied payment for failure to meet the ownership and reporting requirement imposed last year, the amount to which the producer would have been entitled. The bill was approved and laid over for inclusion in an omnibus bill.
A bill modifying the interest rates and priority for the agricultural shared savings loan program also gained the panel's approval. S.F. 2645, sponsored by Sen. Steve Murphy (DFL-Red Wing), specifies that for loans made between May 1, 2004, and June 30, 2007, the commissioner must give priority to loans to resident farmers beginning or expanding organic farming operations. Murphy said organic farming is one of the fastest growing types of farming in the state. The bill was approved and advanced to the Senate floor.
The panel also approved a bill appropriating funds to assist in the operation and staffing of the Minnesota National Guard Youth Camp at Camp Ripley. S.F. 2366, sponsored by Sen. James Metzen (DFL-St. Paul), but presented by Sen. Paul Koering (R-Camp Ripley), provides for an appropriation of $100,000 contingent on being matched by money from other sources. The bill was re-referred to the Finance Committee.
Two bills sponsored by Sen. Gary Kubly (DFL-Granite Falls) were discussed, but laid over for further consideration. S.F. 2572 establishes a program to develop cooperatively owned livestock processing plants and establishes a culturally specific livestock processing development program. S.F. 2356 requires registration of retained patented seed and sets a fee of $7 per bushel for the retention of the seed.
Anderson said Borlaug's work in agriculture has resulted in saving millions of human lives by averting famine and alleviating hunger and malnutrition. Borlaug, a University of Minnesota graduate, received the 1970 Nobel Peace Prize for work in developing grains and other crops to provide food for developing nations. Regents' Professor of Agronomy and Plant Genetics Ronald L. Phillips spoke in support of the bill. He said, "Through Dr. Borlaug's tireless efforts now spanning 60 years, he has probably saved the lives of more people than anyone else in history. Today, he speaks out on behalf of rationality in food production and encourages the use of new technology in meeting the challenges created by increased population."
Committee members, chaired by Sen. Jim Vickerman (DFL-Tracy), also spoke in support of the bill. Sen. Steve Dille (R-Dassel) said, "Dr. Borlaug is one of the true heroes of agriculture." The bill was approved and recommended for placement on the Consent Calendar.
The committee also approved a bill, S.F. 2218, providing a property tax exemption for the homestead of a permanently and totally disabled veteran or the veteran's spouse. The measure, sponsored by Sen. Steve Murphy (DFL-Red Wing) was advanced to the Tax Committee.
S.F. 2428, carried by Vickerman, provides for the validity of electronic documents and signatures used in a variety of agricultural transactions. Under the bill, electronic documents include, but are not limited to, warehouse receipts, grain purchase contracts and voluntary extension of credit contracts. The measure was approved and re-referred to the Judiciary Committee.
Committee Chair Jim Vickerman (DFL-Tracy) carried S.F. 2483, which requires counties to reserve a military family's positions under the child care assistance fund and on the basic sliding fee waiting list if the family has been receiving assistance but is temporarily ineligible due to increased income from active duty service. The bill also prohibits prospective employers from inquiring about a job applicant's status in the National Guard or reserves. Tuition reimbursement at public institutions of higher education for members of the National Guard is changed from 80 percent to up to 100 percent, under the bill. Responsibility for veterans educational programs is transferred from the commissioner of education to the commissioner of veterans affairs by the bill. S.F. 2483 also requires school districts to pay a salary differential to active-duty members of the National Guard or armed forces reserves and requires the commissioner of veterans affairs to report to the Legislature, by Jan. 15, 2005, on information needed to implement a global war on terrorism bonus to veterans, including service eligibility dates, service medals and projected costs.
Sen. Betsy Wergin (R-Princeton) offered an amendment removing the report on the bonus and providing for a proposed constitutional amendment permitting the payment of bonuses to veterans of the global war on terrorism. The constitutional amendment is put before voters in the 2004 general election. We should be authorizing a bonus now, Wergin said, not studying the issue and waiting. Without a study, we will not know how much a bonus will cost, how many veterans will be eligible for it and other important details, said Sen. Steve Murphy (DFL-Red Wing). We do not promise to veterans something we cannot deliver, Vickerman said. Sen. Sean Nienow (R-Cambridge) said the amendment has no cost. The Legislature can wait to pay the bonuses, he said, but should get a mandate from the people to provide the bonus. Sen. Steve Dille (R-Dassel) noted that previous bonuses-including those for Vietnam and Gulf War veterans-were approved by the voters. The amendment was defeated on a voice vote. Members then amended the provisions of S.F. 2483 onto S.F. 2260. Vickerman, chief author of both bills, said S.F. 2260 will serve as the vehicle for veterans provisions.
In other action, committee members voted to approve the appointments of Jeffrey Olson as commissioner of veterans affairs and of five members of the Minnesota Veterans Home Board of Directors: Frank Budd, Mel Euteneuer, Lawrence Greenberg, Jeffery Johnson and Dan Williams. The panel also heard from Maj. Gen. Larry Shellito, adjutant general, on the status of Minnesota's National Guard forces.
S.F. 1472, sponsored by Sen. Gary Kubly (DFL-Granite Falls), provides for an income tax credit for quality milk production. Under the bill, the quality milk credit is equal to 5 cents per hundred weight of milk produced during the taxable year. In order to qualify, the bill specifies that the milk must average a somatic cell count lower than 150,000 and that the taxpayer must maintain a rolling herd average milk production in excess of 21,000 pounds. The bill was approved and re-referred to the Tax Committee.
A second bill, S.F. 1473, also sponsored by Kubly, establishes a revolving loan fund for dairy farmers to purchase additional mature dairy cows. Kubly said the loans, up to $6,000, would allow farmers to purchase up to 6 additional cows. A representative of the Dept. of Agriculture said the department is concerned that the bill requires direct loans through the Rural Finance Authority, but the authority does not have the staff to perform that function. Members urged Kubly to work with the department to address the concerns before approving the bill and re-referring the measure to the Finance Committee.
S.F. 1939, authored by Sen. Dallas Sams (DFL-Staples), appropriates $1 million to expand the dairy development and profitability enhancement and the dairy business planning grant programs. The bill was also advanced to the Finance Committee.
Members also approved S.F. 1941, authored by Sen. Steve Dille (R-Dassel). The measure provides for a grant program to promote modernization of dairy equipment. Dille also offered, and members adopted, an amendment specifying that the commissioner of agriculture make cash payments to beginning milk producers of $1 per hundred pounds of milk for the first one million pounds produced each year for the first 5 years. The amendment specifies that total payments may not exceed $10,000 and that a beginning milk producer must agree to participate in a farm management program. Dille offered another amendment that generated considerable discussion. The amendment, aimed at protecting sustainable family farms, prohibited local units of government from regulating family farms. Dille said the amendment was drafted because of a hostile political and social climate for farmers who want to raise livestock and expand their operations. Several committee members argued against the amendment because it would remove local control. Dille withdrew the amendment in order to fine-tune some of the language. The bill was approved and re-referred to the Finance Committee.
The committee also approved S.F. 1942. The measure, authored by Sams, extends the interest-free status of manure digester loans. Members adopted an amendment, offered by Kubly, that extends the loan program to on-farm processing of agricultural products. The bill was approved and advanced to the Finance Committee.
Before taking up the bill, committee members heard the results of a program evaluation of the lottery by the Office of the Legislative Auditor. The report, presented by John Yunker, found that the lottery spent far more of its sales revenue on operating expenses than comparable state lotteries, resulting in less funding being available for environmental programs funded by lottery profits. The report also found the lottery to be less accountable to, and more autonomous from, the governor and Legislature than any other state agency. Spending on certain marketing and promotion activities, including the lease of a traveling exhibit trailer, was also drawn into question by the report. "However, we found nothing to have us conclude that there was any criminal activity going on at the Lottery," Legislative Auditor James Nobles said. The report includes several recommendations, including Legislative review of the lottery's budget and granting the governor more authority to remove and appoint the lottery director. The report is available online.
Acting Director Michael Vekich said the lottery has already implemented 11 of the recommendations in the report. The lottery intends to implement all of the recommendations in its power within 120 days, he said. Vekich characterized the lottery as "a business first, wrapped in a governmental wrapper." He said the lottery has been run, since its inception, under an entrepreneurial business model. It is time to move to a professional business model, Vekich said.
S.F. 2181, sponsored by Sen. Ann Rest (DFL-New Hope), implements some of the recommendations contained in the auditor's report. Under the bill, the lottery director serves at the pleasure of the governor. However, to maintain continuity within the lottery's direction, Rest said, the bill does not make the director's term coterminous with the governor's elected term. The bill also requires Legislative review of the lottery's budget, adds a requirement for the lottery director to include capital expenditures in an annual report to the Legislature and governor and creates a lottery organization task force.
John Curry said the Minnesota Center for Environmental Advocacy (MCEA) issued a report last year about perceived deficiencies in lottery operations and revenues for the Environment and Natural Resources Trust Fund. Too many people took the report as being without merit, he said. Changes made since the MCEA report was issued have resulted in a more efficient and profitable lottery, Curry said. He said inefficiencies may have cost the trust fund as much as $130 million over the last 13 years. Curry said the center supports S.F. 2181, but recommends adding a section providing performance goals and objectives for the lottery and dedicating all unclaimed prize dollars to the Environment and Natural Trust Fund. The bill splits the unclaimed prize monies between the trust fund and the general fund.
An amendment prohibiting the lottery from spending money on advertising was offered by Sen. Sean Nienow (R-Cambridge). Minnesota is far above other states on advertising expenses, Nienow said, but it is unclear if the spending is effective. He questioned if the state should even be promoting gambling. Rest said the lottery, as a business, needs to advertise its product. The amendment was defeated.
Vickerman offered an amendment dedicating the entire balance of unclaimed prize dollars to the Environment and Natural Resources Trust Fund. Sen. Dick Day (R-Owatonna) said the trust fund has a balance of $280 million, while the state is facing a serious general fund shortfall of perhaps $400 million. At this stage, I can't see justifying losing the money in the unclaimed prize fund, he said. The amendment was adopted.
The bill prohibits ownership of the prohibited animals, but allows a person who already possesses an animal to keep the animal if the person complies with federal regulations within 90 days. The measure also requires a person who possesses a prohibited animal to notify the local animal control authority that the person has the animal and requires the person to have a microchip implanted in the animal for identification. The person must also maintain health and ownership records on each animal, display a sign that states there is a dangerous animal on the property, and immediately notify local law enforcement authorities if the animal escapes. The bill outlines steps for seizure of the animal if the possessor does not comply with the law and allows the seized animal to be disposed of if a veterinarian determines the animal is suffering and will not recover. The measure exempts zoos, wildlife sanctuaries, game and fish, research and medical institutions and circuses from the prohibition.
Tammy Quist, Wildcat Sanctuary, spoke in support of the measure and said the majority of states ban the private possession of exotic animals, have a partial ban or require a permit. Exotic animals pose safety threats to humans and many people who buy animals as pets cannot properly take care of them, she said. Lee Ehmke, executive director, Minnesota Zoo, also spoke in support of the measure. "The bill will create important regulatory controls by imposing limits on ownership and possession of dangerous animals," Ehmke said. He also said private ownership of exotic animals also has implications for conservation of the species. He said exotic animals resulting from indiscriminate breeding are not potential contributors to viable conservation programs because the animal's genetic history is unknown or they are severely inbred.
Opponents of the measure argued that the bill will put some animal tourist attractions out of business. Cindy Jepsen, Responsible Animal Owners Association of Minnesota, said members of the organization support the proper care and regulation of animals. She said exotic animals pose less of a threat within communities than many domesticated animals. Caara Holmstrom, Paul Bunyan's Animal Land, also spoke in opposition. She said, "The bill will put us out of business. We are opposed to the ownership restrictions, the signage requirements and the restrictions on movement." Holmstrom said she takes animals to schools and other public venues and the restrictions on movements would be very cumbersome. Kevin Vogel, Vogel Exotic Animal Shows, said that his family business travel extensively and the bill would force his business to close.
Betzold suggested an amendment, which was adopted, providing that if a registered prohibited animal dies and the death was not caused by neglect or cruelty, the local animal control authority may grant a variance allowing the person to replace the prohibited animal. Betzold said the amendment would allow businesses like Paul Bunyan's Animal Land to continue.
Sen. Steve Dille (R-Dassel) offered an amendment to address the concerns of opponents. The amendment provides that a person who possesses a valid U.S. Dept. of Agriculture license and is in compliance with the USDA Animal Welfare Act may breed, purchase or otherwise acquire new prohibited animals in order to maintain their current inventory or to sell prohibited animals to other USDA licensed and compliant facilities. The amendment made a number of additional changes, including removing provisions relating to signage, the microchip placement in the animals and the requirement to obtain a permit before moving the animals. Betzold, and other committee members, worked through the amendment with Dille and agreed that some minor language changes are necessary. The amendment was adopted. The bill was approved and advanced to the Judiciary Committee.
John McCarthy, Minnesota Indian Gaming Association, said tribal casinos contribute enormously to the state economy. He cited the construction, supplies and jobs required to build and operate casinos. Tribal casinos, McCarthy said, are the ninth largest employer in the state, with 78 percent of casino jobs located in Greater Minnesota. Seventy percent of employees are not tribal members, he said. McCarthy challenged the notion that non-Indian Minnesotans got a bad deal with the compacts. The compacts are a good deal for everyone, he said, since tribal gaming provides assistance and economic stability for a historically underserved population, reduces welfare costs in areas with casinos and participates in the greater economy. Gordon Adams, a Bois Forte tribe board member, said tribal casinos are not expanding gambling in the state. While casinos may be adding slot machines or blackjack tables, the casinos are expanding within the established parameters, as any other business would do if the demand existed, he said. Adams said casinos are also adding non-gaming amenities, such as marinas and golf courses. He urged Senators not to approve plans for non-tribal casinos.
However, Sen. Betsy Wergin (R-Princeton) said she was more concerned about the protectionist attitude of the tribes after hearing their testimony than she was before the hearing. The gaming association is putting one group over all other Minnesotans at any cost, she said. Wergin said she didn't know how the same business, casino gaming, could be a bad thing if offered privately, since it offers the same economic impacts on a local community. Adams said many casinos outside the Metro Area have regular customers from the Twin Cities and would have to increase their marketing budgets to maintain market share. Casinos will cut jobs before they reduce services to guests, he said.
King Wilson, Allied Charities of Minnesota, briefly reviewed the kinds of games grouped together as lawful gambling in Minnesota, such as bingo and pull tabs, and the charities supported by lawful gambling. Executive Director Tom Barrett provided committee members with a summary of the activities of the Gambling Control Board, the entity overseeing charitable gambling. A similar summary for the Racing Commission was provided by Richard Krueger. Krueger, the commission's executive director, also informed the panel that the commission has received an application for a harness racing facility to be located in the northern Metro Area.
Committee members recommended the Senate approve the appointments of seven members of the Gambling Control Board and seven members of the Racing Commission. The appointees to the Gambling Control Board are William Barbknecht, Pat Davies, Gerald E. Dexter, James Hynes, Donald McHale, Peggy Moon and Howard Register. The appointees to the Racing Commission are Darcy Hitesman, Lynn Marvin Johnson, Scott LeDoux, Robert McNamara, Kathleen Preece, William Robinson and Kristine Sundberg.
The bill requires a person to make restitution for the resulting costs and expenses of personally harming a service animal or harming the service animal by negligently or intentionally permitting a dog to run uncontrolled off the owner's premises or failing to keep the dog properly confined or controlled. Phil Kragnes of the Minnesota Guide Dog Users told committee members, chaired by Sen. Jim Vickerman (DFL-Tracy), that service animals are more likely to be attacked by other animals than by persons. He said the association is not trying to jail people for accidental harm, but wants just compensation for people dependent on service animals.
Three owners of service dogs related their stories of attacks on their dogs by other dogs. Jo Davis, a resident of Austin, said all three of the service dogs she has had since 1994 have been attacked. One of the dogs was attacked so brutally, she said, that it was rendered unreliable around animals or people. Barb Kaufman of Minneapolis related the story of an attack on her guide dog, Glamour, in 1998. She said Glamour required some veterinary attention after the attack and some retraining to maintain behavior control. In addition, Kaufman said she had to take about three-fourths of a day off work immediately after the attack to attend to Glamour. Clarence Schadegg, also of Minneapolis, said his service dog has been attacked three times in the last six months. The attacking dogs were usually unleashed, he said, and often attacked in high-traffic areas that posed great risk to his dog and himself.
Jim Molenaar, regional manager of the farm business management program at Ridgewater College, discussed the contributions agriculture makes to the economy. He said Minnesota ranks 6th among the states in total agriculture receipts at $8.1 billion and 7th among the states in agricultural exports at $2.3 billion. Agriculture accounts for 350,000 jobs in Minnesota, or 11 percent of total employment, and one in four jobs are dependent on agriculture, Molenaar said. He also discussed the decreased buying power, for farmers, of agricultural products and the increased debt levels many farmers bear. Molenaar also noted that Americans have the most affordable food prices of any nation in the world, even with the cost of federal payments to farmers. Total federal payments were $13.1 billion in 2002, costing the average citizen $45 a year, he said.
Four students from Ridgewater College discussed the declining number of young people interested in farming or in staying in Greater Minnesota communities. They also presented proposals for increasing interest in agricultural life: increasing K-12 school funding, requiring an agriculture education program in every school district, returning University of Minnesota Extension Service programs to every county, providing government incentives for high-paying manufacturing and technical jobs to locate in Greater Minnesota, creating a subsidy for dairy farmers in their first five years of operation and providing financial support for students seeking additional education in agriculture.
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