Dear Neighbors,

The 91st Minnesota Legislative Session adjourned sine die on Monday, May 18, 2020, leaving numerous policy, budget, and tax bills incomplete. Most disappointing was the absence of a bonding bill. While both the House and Senate took up bonding proposals, each body failed to secure the three-fifths majority required to pass the final bill.

We approved  $25 million for renewable energy project development funded through the state’s Renewable Development Account (RDA) and a $117 million Legacy bill to fund outdoor conservation projects statewide. 

This year’s session began with a positive budget balance of $1.5 billion and a strong economic outlook for our State, but the pandemic swung the positive outlook to a $2.4 billion projected budget deficit. The fallout of Covid-19 completely upended the state’s economic forecast and forced the Legislature to change how it did its work. Virtual committee hearings became the norm, and floor sessions changed dramatically with social distancing.

Even under these difficult and unusual circumstances, we were able to pass the Alec Smith Insulin Affordability Act, election security legislation, broadband infrastructure support for E-learning and telemedicine, and more funding to provide support for personal care attendants. We also provided support for our local businesses and provided workers compensation benefits to our health care workers and public safety officials.

Significant work remains to be done and we anticipate we’ll reconvene for a special session in June to take up the bonding bill, Covid-19 related tax law changes, and the appropriation of federal Covid-19 funds.

While the pandemic will require attention for some time, I will not lose focus on the unfinished business of the 2020 legislative session. I am committed to taking important steps forward to pass paid family leave, gun violence prevention, fair equity funding, affordable housing, a conversion therapy ban, medical cannabis reforms, addressing the opportunity gap, a stronger sexual harassment standard, restore the vote, Clean Energy First and 100% Clean Energy by 2050, and housing security.

Below is a recap of the status of several of the major bills this session.We are providing you side-by-side comparisons to make you aware of the passed and halted legislation. This is a long report but we hope it helps you keep track of key issues, subject by subject. 

Patricia

 

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Bonding Bill

Currently, we have over $5.3 billion in bonding requests to address the growing backlog of projects and improve the crumbling infrastructure across our state. It will be more expensive for Minnesotans to hold off on repairing critical infrastructure, than to bond these projects while interest rates are low.

The House Bonding bill, H.F. 2529, included $2.52 billion in total spending that closely mirrored Gov. Tim Walz’s bonding recommendations. In addition to $1.8 million in total general obligation bonds, which included assistance to state agencies, numerous local projects, and public housing assistance, it appropriated $102.1 million in trunk highway bonds and $214 million in housing infrastructure bonds.

The Senate Majority bonding bill, S.F. 3463, included $998 million in spending that did not adequately meet the needs across the state and lacked investments in transit, higher education, public safety and equity projects. This bill also contained a significant number of earmarked projects in districts represented by Republican members that had not been reviewed and approved by the Transportation Department’s Project Selection Process, a policy agreed to at the Legislature’s direction.

The Senate DFL had a $2.3 billion bonding proposal, S.F. 4573, that benefited all Minnesotans and ensured access to safe drinking water, affordable housing, public safety, and upkeep for the higher education institutions that prepare our future workforce in our state. 

 

Agriculture 

S.F. 4494 appropriated $8 million to provide internet access and school connectivity to students to obtain online learning materials, targeting unserved areas. $10 million was also made available for border-to-border broadband grants, only available if money is reimbursable by the federal government.

H.F. 4285, the Omnibus Agricultural Policy Bill provided $125,000 for grants to retail food handlers for the deployment of protective equipment to meet CDC guidance and provide personal protective equipment to employees. 

Provisions relative to hemp seed and the processing of hemp were also included. $100,000 were appropriated for the grain storage safety program, $60,000 for farm advocates and $40,000 for additional community outreach 

H.F. 2959 appropriated $50 million for the Rural Finance Authority (RFA) to use these resources or a variety of financing options for farmers, including extreme weather conditions, historically low commodity prices, and most recently struggles related to COVID-19.

H.F. 4556 and H.F. 4599 delayed the enforcement of debts to 150 days for qualifying individuals by extending the mediation period under the Farmer Lender Mediation Act.  

 

Covid-19 Assitance

PASSED HALTED
S.F. 3813 provided $21 million in funding for Minnesota’s public health response contingency account. Funds were utilized by the Minnesota Department of Health to coordinate response activities, conduct lab testing, and contract for needed services, staffing, and supplies. 

H.F. 4334 appropriated $200 million in funding to support our state’s healthcare system. $50 million was distributed on an emergency basis to nearly 350 provider organizations across the state to prepare and respond to COVID-19. The remaining $150 million went to hospitals and clinics, providers working in ambulance services, pharmacies, nursing homes, or long-term care facilities with costs related to the pandemic.

H.F. 4531 provided $9 million in funding to support food shelf programs across the state that saw an increased demand during the pandemic and had to quickly adapt to increased supply, staffing, and food delivery needs.

H.F. 4531 funded emergency childcare grants for programs who could stay open to prioritize space for emergency workers and which were being strained by enrollment fluctuations and increased operating costs due to COVID-19. 

H.F. 4456 codified federal changes into state statute for the duration of the federal emergency declaration to allow Medical Assistance (MA) to cover the cost for COVID-19 testing and related office visits for uninsured individuals.

S.F. 4540, a bill introduced by Sen. Franzen and Rep. Gomez would establish an emergency community relief grant program to support Minnesotans who fall through the gaps of other COVID-19 relief programs.

As a co-author of this legislation, we need to support ALL of our community members who did not qualify for federal stimulus grants, unemployment insurance, and other relief programs.

For example, many high school and college students do not qualify either as individuals or as children living in their parents’ households. U.S. citizen spouses and children of immigrants who do not have Social Security numbers are also excluded from federal relief programs. Some elderly and disabled individuals are excluded as well.

Thank you all for your phone calls, emails, testimony, and support advocating for S.F. 4540!

We need to get every possible message to Minnesota State Senate and House leadership, to individual state senators and representatives, and to Governor Walz, telling them to pass S.F. 4540 during the special session

 

 

 

 

 

 

     Commerce             

PASSED

HALTED

S.F. 2130, The Omnibus Liquor Bill grants licenses to local establishments, including golf courses and sports arenas, to bring in new revenue as COVID-19 is taking a toll on business. It also includes special liquor provisions for individual cities and provides clarification for municipal liquor operations that removes the consideration of long-term pension liabilities from the calculation of profit or loss for continuation purposes.

S.F. 2466 prevents the financial Exploitation of seniors by permitting financial service providers to notify the Minnesota Adult Abuse Reporting Center when there is suspicion of financial exploitation. This requires financial services providers to delay a disbursement or hold a transaction if provided evidence by the Department of Commerce, law enforcement, or an attorney’s office that there is evidence of financial exploitation.

Microbreweries advocated temporary changes to state law to sell their product in packaging other than the growlers or crowlers, such as six-packs, since sales and foot traffic are down as a result of COVID-19. While some breweries are having to dump their beer as it doesn’t have the same shelf life as hard alcohol, there are some concerns that allowing this alternative packaging would negatively affect small liquor stores and threatens to disrupt the state’s three-tier alcohol system.

Stakeholders have been unable to find a compromise or agreement on this issue and will continue to be discussed as we look for ways for our state’s small businesses to get through this pandemic. 

 




 

 Education

PASSED HALTED

H.F. 4415 reduces the service day requirement for probationary teachers interrupted by distance learning, waives student statewide testing requirements for the 2019-20 school year, and requires the Professional Educator Licensing and Standards Board (PELSB) to implement a six-month delay process for any teacher licensure renewal requirements since testing facilities were closed due to the pandemic.

The bill also allows fund transfers from unencumbered funds to  help school districts pay for community education and nutrition costs that would normally be covered by fees. Additionally, the school aid fiscal formula was adjusted for special education, school meals, CTE, nonpublic pupil transportation, desegregation and integration transportation, Literacy aid, School Age care, developmental screening achievement and integration and ABE aids. These changes together result in a net savings to the state of $218,000 this biennium and a net cost of $215,000 in the tails

 

 

 

 

 

 

 

 

 

 

School Employees were left out as Senate Republicans refused to hear a bill in committee that provided compensation for hourly school employees and allowed entities that contract with schools to provide services to be reimbursed for paying their employees for changes in school employment practices related to COVID-19 school closures. Thus ensuring that our hourly school employees working across schools in Minnesota would not get paid during the distance learning weeks at the end of the school year.  

The Anti-School Lunch Shaming Bill would ensure students with unpaid school lunch debt would still receive meals and not be shamed for their parent’s lack of payment did not make it over the finish line again this session. The legislation also requires districts to have a meal plan policy provided in multiple languages and prohibits meal dumping. 

American Indian Program Changes would require the MDE commissioner to consult with the Tribal Nations Education Committee when revising the academic standards and make them more inclusive and responsive to native cultures.

The Increase Teachers of Color Act set a goal of increasing the percentage of Minnesota teachers of color and American Indian teachers by 2% per year with an aim of having teachers reflect student diversity by 2040. While Minnesota’s student population is changing, its teacher workforce is not. About 30 % of the state’s K-12 students are students of color, but 94% of the teachers are white. 
 

Energy

PASSED HALTED
H.F. 1842 finances renewable energy development projects from the Xcel Energy Renewable Development Account, allowing four energy projects to go forward:

·     $46.2 million, spread over three years, to allow the Prairie Island Indian Community to become a “net-zero energy community.” The intent is to develop an energy system that implements renewable energy projects that result in net zero carbon emissions. 

·     $10 million to Solar Rewards, the solar incentive program administered by Xcel Energy that offers discounts to Minnesotans who install rooftop solar panels. The program and funding are extended to 2022.

·     $2.8 million for a new turbine to expand Granite Falls’ hydroelectric generating facility.

·     $2 million in grants to help communities that lose an electric generating facility through a new Host Community Grant Program. Grants must be spent in communities in Xcel Energy’s electric service area or in communities that host an Xcel electric generating plant. 

S.F.  1456, the Clean Energy Act would move Minnesota toward “clean energy first” by strengthening the state’s preference for carbon-free and renewable energy when utility companies need to replace or increase power.  

H.F. 4502, the Energy Conservation and Optimization (ECO) Act, seeks to gain cost-efficient energy savings for utilities that operate within Minnesota andand mandates a move toward innovative clean technologies in energy production, setting criteria for utility load management and efficient switching between fuel sources. This would bring the largest update to Minnesota’s energy conservation program since 2007.

S.F. 3013, the Natural Gas Innovation Bill, seeks to promote innovative clean energy resources and technologies to reduce greenhouse gas emissions and advance clean energy. It would allow a utility to deploy new energy-efficiency and carbon-capture technologies to reduce or avoid greenhouse gas emissions from natural gas use.

 

 

Environment

PASSED HALTED

S.F. 4073, the Trichloroethylene (TCE) Ban, prohibits the use of this volatile organic compound that is known to cause cancer and other detrimental health effects. The ban begins on June 1, 2022, with some exceptions, and requires the chemical replacement for TCE to be less toxic to human health and approved by the Minnesota Pollution Control Agency (MPCA). Additionally, the MPCA’s Small Business Assistance Program will provide use of its $250,000 interest-free loan program to help small businesses evolve away from the use of TCE.

H.F. 2682 appropriated nearly  $118 million from the Outdoor Heritage Fund to various conservation projects, as part of the Legacy Finance bill that passed the Senate unanimously. These funds will be used as follows: 

·     $35.8 million for prairie projects,
·     $13.7 million for forest projects,
·     $12.6 million for wetlands projects,
·     $55.4 million for other habitat projects and the conservation partners legacy grant
      program.

 A one-year extension is given to the availability of appropriations or grants from the Outdoor Heritage Fund, Clean Water Fund and Parks and Trails Fund that would otherwise cancel on June 30, 2020.

 

 

 

 

 

 

 

 

S.F. 4499, the Omnibus Environment Bill included $61.4 million for projects to be funded by the constitutionally dedicated Environment and Natural Resources Trust Fund, as recommended by the Legislative-Citizen Commission on Minnesota Resources (LCCMR).  

·     $30 million for land acquisition, habitat and recreation projects.
·     $10.4 million for research and management of aquatic and terrestrial invasive species.
·     $8.6 million for foundational data on prairies and hydrology for wetland protection.
·     $3.6 million for water resource protection and management projects.
·     $4.2 million for projects that protect or restore land, water, and habitat. 

Certified Salt Applicator Program seeks to reduce the amount of salt used by those who treat driveways, sidewalks and parking lots and requires the Minnesota Pollution Control Agency to develop a training program that promotes best practices for snow and ice removal and deicer application. 

Repeal of Car Emissions Standards Authority removes authority of the MPCA to adopt maximum allowable standards for emission of air contaminants from motor vehicles, removing the agency’s ability to adopt Governor Walz’ proposed Clean Car Standards.

Clean Air Act State Implementation requires the MPCA to seek approval from the federal Environmental Protection Agency for a modification of the state’s Clean Air Act Implementation Plan to prohibit MPCA from applying an ambient air quality standard in permits issued solely to authorize operations to continue at an existing facility with unmodified emissions levels.

 

Health and Human Services

PASSED HALTED
H.F. 3100, the Alec Smith Insulin Affordability Act requires manufacturers to make insulin available for eligible individuals who are in urgent need of insulin by July 1, 2020. The copay for emergency insulin goes down to $35 from the original $70 copay. Each manufacturer must maintain an ongoing patient assistance program for qualifying individuals and pharmacies may charge up to a $50 co-pay for each 90-day supply issued under that program to cover processing and dispensing costs. Manufacturers who fail to comply must pay a fee, which will start at $200,000 a month and increase to $600,000 a month after one year of noncompliance. 

I am incredibly grateful for the work of advocates across the state who worked tirelessly on this issue to make sure no one dies from a lack of access to affordable insulin.

S.F. 1098, the Prescription Drug Pricing Transparency Act requires drug manufacturers licensed by the Board of Pharmacy to report drug prices beginning October 2021 that are raised over certain thresholds to the Department of Health. However, this bill stops short of meaningful reforms to lower drug costs. I am supportive of increased transparency and see this legislation as a way to lay the groundwork for more aggressive measures to reduce the cost of prescription drugs next session. 

H.F. 331, the Tobacco 21 Bill was signed into law on Saturday May 16, 2020 by Governor Walz. It raises the legal age to purchase tobacco and vaping products in Minnesota to 21. While numerous cities and counties throughout the state have already implemented ordinances prohibiting the sale of tobacco products to individuals under 21, the new law creates a statewide prohibition. Minnesota became the 25th state to adopt the T-21 law

The Minnesota African American Family Preservation Act protects the best interests of African American children and promotes the stability and security of African American families. This bill would establish minimum standards to prevent arbitrary and unnecessary removal of children from their families and require active efforts to use culturally appropriate services in child welfare to prevent out-of-home placements for African American children. 

H.F. 4582 would have provided a one-time emergency assistance payment to approximately 27,700 families who participate in the Minnesota Family Investment Program (MFIP). MFIP supports some of our lowest-income families with children by offering cash and food benefits with employment services.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Housing

PASSED HALTED

S.F. 4451 appropriated $32 million in funding to support housing and shelter options for Minnesotans experiencing homelessness. A portion of this funding is dedicated to the Housing Support Program, which provides room and board costs for adults with low incomes who have a disability or are aged 65 or older and at risk of institutional placement or homelessness.

 

 

 

 

 

H.F.2542 included $100 million in housing infrastructure bonds and emergency rental assistance, outside of an overall bonding bill. However, these provisions did not pass after Senate Republicans attempted to include policy language that would forfeit the safety of children and the efficiency of improved building codes. Stakeholders, including the League, Minnesota Housing Finance Agency, and the Department of Labor and Industry, found this problematic.

Housing advocates and others had many proposals that were sidelined and negotiations surrounding housing resources will likely continue during a special session.
 

Jobs and Economic Development

PASSED HALTED

H.F. 4537, the Presumed Workers Compensation Benefits for Frontline Workers who contracted COVID-19 and were presumed to have become ill in a work setting would be eligible for workers’ compensation benefits. 

H.F. 4531, the Small Business Emergency Loans allocated approximately $30 million for businesses directly impacted by the Executive Order closing restaurants, bars, and other places of public accommodation. Additionally, the Legislature appropriated $10 million to help small businesses impacted by COVID-19 but do not qualify for an SBA disaster assistance loan.

 

 

 

 

 

 

The Workers Compensation Reimbursement included the recommendations of the Workers’ Compensation Advisory Council, and was amended to include $375 million in set-aside funding to assist with the costs to local governments of public safety and health care workers and other employers of health care workers who contract COVID-19.

Small Business Emergency Loans II would appropriate $60 million from the coronavirus relief fund for small business relief grants. Of this appropriation, $30 million is for grants to the Minnesota Initiative Foundations which shall distribute it to greater Minnesota and $30 million to serve businesses in the seven-county metropolitan area through grants to nonprofits. The grants would target small and micro-businesses as well as reserve money for cultural malls. Approximately $15 million of the appropriation will target women, minorities, and people of color. Resources were also made available for cultural malls ($2.5 million). 
 

State and Local Government

PASSED HALTED

H.F. 2796, based on the Minnesota Management and Budget Review concerning Public Employee Contracts, MMB has determined that under the statutes enacted by the Legislature, the Legislature does not have the authority to unilaterally modify the agreements or plans. Although the Senate chose a path that is not outlined in law, the legal effect of the Legislature’s action is to ratify the agreements that were negotiated in good faith and the compensation plans. The Senate DFL supported full ratification of the contracts for the state employees working on the front lines of the COVID pandemic and voted against this attempt to meddle in collective bargaining agreements and MMB will implement them as submitted to the Legislature.

H.F. 3429, the Help America Vote Act (HAVA) bill included the required 20% state match, which is $1.4 million appropriated from the General Fund. The federal Election Assistance Commission recently issued guidance that states may use HAVA funds for COVID-related expenses (e.g. personal protective equipment or absentee ballot expansion) if the funds don’t supplant other existing state or local election appropriations.

H.F. 3429, allows local election officials to designate new polling locations until July 1 and allows health care workers to administer absentee ballots to residents. It also anticipates an influx of more absentee ballot applications this election season. Local election officials are provided an additional week (for 14 days total) before election day to open and count absentee ballots plus two days following election day. Election officials will only be able to use schools as polling locations when no other location is reasonably available. If schools must be used, election officials and school staff must work to ensure that contact between voters and students is minimized.

 

Automatic Vote-by-Mail was blocked by Republican legislators to automatically mail every registered voter in the state a ballot to minimize the number of voters physically present in polling locations for the 2020 Presidential Election. Currently, any non-metro township or city with less than 400 registered voters may choose to hold elections by mail.

The Voter ID and Provisional Ballots Bill ultimately did not pass the Senate. This controversial bill would have imposed strict voter identification requirements, which would have disenfranchised countless voters across the state and would have resulted in thousands of ballots being cast aside and left uncounted.

The Presidential Primary Data Protection Bill designed to protect voter data failed to pass this session and raised significant questions regarding who will gain access to the information. Potential voters are concerned that their party ballot preference data could be used to discredit their professional objectivity or could be publicly released by another political party. Current law does not restrict who the political parties may share this voter data with.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes

PASSED HALTED

Property Tax Delays: Several counties across the state made independent decisions to move deadlines and/or relax penalty and interest for late payments. Property taxpayers concerned about local property taxes should contact their local governments. Depending on how these changes affect local government budgets, the Legislature may need to address ramifications in the future.

 

 

 

 

 

 

 

 

 

 

H.F. 3389, the House Omnibus Tax Bill, was amended to include several local revenue flexibility provisions to allow the use of otherwise dedicated revenues such as local sales taxes, special local lodging taxes, and local food and beverage taxes. Meanwhile, S.F. 3843 did not include any similar local revenue flexibility provisions. Neither bill included any of the 20 local sales tax requests or local tax increment financing proposals. A package of tax provisions could be discussed in the special session. 


Tax Conformity: The federal government has made a handful of tax-related changes in three recent bills: one passed in December and two passed since the COVID-19 pandemic began. The House DFL tax bill also included about $15 million to bring Minnesota’s tax code into conformity on items that mostly affect some businesses and specific individual taxpayer situations, while the Senate Republican tax bill did not contain any conformity language.
 

Transportation

PASSED HALTED
HF 462, the Transportation Policy Omnibus, is the result of a bipartisan coalition of legislators and transportation advocates that compiled a list of noncontroversial transportation proposals, including the requirement for school buses to use their warning lights and stop arms when making school supply and meal deliveries to students, allowing drivers involved in a collision to provide an email address or mailing address to the other driver instead of their actual residential address for safety purpose, and providing the option for people with mental conditions to possess Minnesota Drivers’ Licenses and ID cards bearing a graphic or written identifier to help law enforcement.

Senate Republicans refused to invest in public transit this session. No funding or investment in mass transit was included in the bonding bill, and in particular, efforts to expand Bus Rapid Transit options like Line D that were widely supported by our district were ignored. I remain committed to expanding mass transit options and lowering costs to increase mobility and reduce greenhouse gas emissions.