Sen. John Hoffman (SD36) Update: April 12, 2019 , CD3 DFL

Week 14, Friday April 12th

Dear Friends and Neighbors,

We have reached the Legislative Recess. Committees have finished their session work and Omnibus bills will be heading towards the floor or conference committees in a little over a weeks time. After a long fourteen weeks, we have an idea of what bills are in motion and we know the budgets from the House, Senate and Governor. Make sure you keep in contact with me for updates on this session process. Mean while enjoy this lengthy ENews on Bills that are moving this session.

I’d like to let you know how some of the bills I’ve been working on are doing that are currently moving forward in the health and humans services omnibus bill.

One is my $257,000 in funding for Parent-to-Parent grants. This funding will support an organization that organizes and trains parents who care for children with disabilities into a peer support network. These parents are ready to share their experiences with those seeking help to take care of their children medically as well as emotional support throughout the process.

$70,000 will support a new supplemental rate for Hope4Youth in Anoka County and their 12-bed transitional housing facility. This helps take homeless youth off the street, educate and prepare them for success then send them off into the world as aspiring and successful adults.

$250,000 is for adaptive fitness grants. This will support access to services that can expand mobility and health for those whose disability cause related limitations. Through adaptive fitness many have found more mobility and freedom than they ever expected to have and the more who can access this treatment the better our overall wellness outcomes.

We’ll be out of the capitol to rest next week before the final round of negotiations. While we prepare for the last month of session, feel free to send me your thoughts and what you want to see pass or fail. I’ll bear your hopes in heart and mind as I make each vote.

Sincerely,

John

A Video Update from Senator Hoffman

Omnibus Agriculture, Rural Development, and Housing Bill

Mental health support for farmers and their families

Low commodity prices and mounting debt have taken a toll on farmers and their families across Minnesota and the nation. In recognition of troubling trends regarding farmers’ mental health, Governor Walz appropriated $450,000 to allow for a second mental health professional to provide one-on-one counseling. The amount of new funding being carried for this program in FY 2020 has not yet been decided by Senate Republicans. (SF 1)

Agriculture disaster recovery changes

Heavy snow has resulted in the collapse of private farm structures across the state. This problem was particularly troubling for dairy farms given the market conditions in this sector. In a several cases, dairy farmers who experienced a collapsed barn also lost livestock or were forced to sell them to nearby farmers.

The governor signed legislation that would authorize the Rural Finance Authority to use resources to help farmers recover from barn collapses. The program provides funding for the restoration of damaged agricultural buildings to pre-disaster conditions. (SF 2225)

Dairy farm relief

In addition to the expansion of uses for Agriculture Disaster Recovery, several other proposals were heard to help dairy farmers. With declining milk prices, a harsh winter, and trade issues many dairy farmers are selling their herds. Bills to combat this issue include provisions for a conservation assistance program (SF 1699), a margin coverage assistance program (SF 1698, SF 2226), and a dairy modernization program. (SF 2226)

Commerce

Commerce budget

The Department of Commerce plays an important role in regulating insurance companies and financial institutions. There will be important discussions on what the department needs to carry out these vital tasks.

The bill will go into conference committee with the House, so it is uncertain what the commerce budget will look like by the end of session. (SF 2474)

Liquor bill

The Senate Commerce Committee once again put together its annual omnibus liquor bill. The bill traditionally contains noncontroversial changes to the state’s liquor laws as well as liquor licenses for local establishments that require state approval.

This year’s bill is no different – it contains noncontroversial language that helps municipal liquor stores as well as provisions for liquor licenses at various local arenas and community centers.

However, controversial liquor issues remain part of the conversation, including raising the limit on the number of barrels of beer a microbrewery may sell as growlers. A number of the state’s microbreweries are at or near the state’s cap of 25,000 barrels a year and need the cap lifted to continue to grow as businesses. However, there are concerns from opponents that lifting the cap will allow microbreweries to act as large breweries while maintaining the benefits of being a microbrewery and that lifting the cap will hurt local liquor stores and other liquor establishments.

Other issues being discussed include allowing brewstilleries – businesses that act as microbreweries and microdistilleries – to obtain both a cocktail room license, needed to serve spirits, and a taproom license, needed to serve beer or malt liquor. State statute prohibits this – proponents of maintaining the prohibition argue that it protects the state’s three-tier liquor system.

Selling wine and beer in grocery stores and other expansions of the state’s liquor laws are often part of the conversation as well.

The liquor bill passed off the Senate floor with no controversial provisions. The House still needs to vote on the bill, so it remains to be seen what all will be included in the final version of the bill. (SF 2013)

E-12 Education

Snow Days bill signed into law

Minnesota school districts were handed an excused absence slip in April when Governor Walz signed the snow days compromise bill that will remove penalties for school days lost to Minnesota’s cold, snowy winter. As the snow days mounted, many districts realized they were at or nearing the required 165 education days prescribed by state law. Districts risked penalties for non-compliance with the required number of school days and hours. The provisions are in effect for the 2018-19 school year only.

The bill allows school boards to determine how many days they will declare instructional days to meet the state minimum. Pay provisions for hourly and contract employees and provisions for probationary teachers were included in the bill. School districts also must report to the commissioner on number of days board approves to count as instructional days under the bill. (SF 1743)

2019 E-12 Omnibus Bill

Governor Walz and House and Senate DFLers are generally in agreement on investing in the state’s education system. The governor’s proposal invests $733 million in the state’s education system, and the House DFL investment is slightly higher at $900 million. The Senate’s is significantly lower at 211.5 million in their budget proposal.

We all care about the education of Minnesota’s children. As a legislature we shall have to decide how we support that education and where we invest. (SF 7)

Basic funding formula increase

The main discussion so far has been on funding, specifically the potential basic funding formula increase. The governor proposed a 3% (FY20) and 2% (FY21) increase totaling $521 million. This provides $189 per student in new money in FY20 and $130 per student additionally in FY21 for the biennium. Education advocates had requested that future funding increases be tied to inflation, but that provision was not included in the governor’s bill. The House bill contains the per pupil funding increase.

The Senate’s omnibus budget bill has a $211 million target, providing a .5% and .5% (FY20 and 21, respectively) increase which is approximately $94 million per year or $31 per student (FY20) and $32 per student (FY21).

Reading Proficiency Enhanced

The reading proficiency gap continues to plague Minnesota students, but proposals this session could help if they become law. A bill requiring school districts to screen students for dyslexia in elementary school has been discussed, and there is a bill to form the Minnesota Reads Action Council. The council would recommend legislative action, report on literacy outcomes, and provide an assessment of literacy programs in Minnesota.

Teacher preparation programs in Minnesota would be required to include dyslexia instruction strategies under one of the bill’s provisions. Funding for one program would allow teachers to participate in a literacy professional development program offered by an eligible training provider; a portion of the teacher’s tuition, room, board, and travel costs incurred may be reimbursed. The bill names eligible training providers specifically. Teachers may also receive a hiring bonus if trained by specific providers and school districts may use literacy incentive aid to provide the bonuses.

Voluntary PreK/Early Learning Scholarships

Early education was a hallmark of Governor Dayton’s administration; Governor Walz is continuing Dayton’s legacy by maintaining the $47 million investment to safeguard programs for 4,000 students in 140 schools across 80 school districts and charter schools set to expire on July 1, 2019.

The Senate bill provides an additional $44.5 million in one-time funds for early learning scholarships, creating “transitional seats” based on geographical location around Minnesota. The commissioner of education is prohibited from directly designating scholarships to specific programs; the funding will cover only 3,000 of the 4,000 early learning positions that could be lost.

The governor does not increase funding for the early childhood scholarship program but does propose to transfer the appropriation to an account in the Special Revenue Fund to simplify the payment system, improve the department’s program management and oversight, and ensure the department can meet the commitments made to these children.

Cursive handwriting skill gets a boost

In the era of cell phones and keyboards, the Department of Education must develop a model to enable students to learn legible cursive handwriting skills by the end of grade 5 as part of their review of the English language arts standards.

Military recruiters, skilled trades counseling in schools

Schools must provide military recruiters and organizations promoting careers in skilled trades and manufacturing access to schools and students. The Department of Education must collaborate with the Department of Labor and Industry to incorporate construction and skilled trades into career counseling services for middle and high school students.

School Safety

After the Parkland shooting, legislators promised more money to bolster school safety and enhance mental health services in schools. The governor suggests $5 in one-time state per pupil aid for FY20, and for FY21 and beyond he proposes an increase in the Safe Schools levy from $36 per pupil to $50 per pupil, creating a minimum revenue amount of $20,834 per school district, and equalizing the levy to allow districts with low property wealth to access the revenue. Charters would receive $14 per child. The money could be used for support staff and professional development, social emotional learning and for restorative practices.

The Republicans have proposed $74.5 million in one-time funding for school safety revenue, which is a mixture of aid and levy. The bill also provides $5 million in school-linked mental health grants.

Safe Schools Levy

The safe schools levy remains at $36 per student and may be combined with safe schools aid, which is a new category for schools. Districts that are members of intermediate districts will also receive an additional $15 per student levy authority.

Safe schools aid is set at $38 per student, and districts will receive a minimum of $32,000 in Safe Schools revenue. The aid can also be used for enhancing school cybersecurity, pay costs for school-linked mental health services delivered by telemedicine, and debt service. It preserves the pass-through levy for school districts that are members of intermediate school districts
Allows a school district to issue bonds using their safe schools revenue as collateral for purchasing public announcement systems, emergency communications devices, and other equipment related to violence prevention and facility security
Allows school districts to transfer safe schools revenue into their debt redemption fund to pay for the share of any bonds that were used to pay for facility security enhancements
Charter schools would also receive $38 per student
MDE must report on safe school revenue expenditures to the legislature by January 15 of each year

Teachers of color recruitment and retention

A comprehensive program to encourage more people of color to enter the world of teaching was basically ignored in the Senate and didn’t receive a hearing, and the funding for programs remains at base level. The new provision allows grants to be used at eligible secondary schools to partner with higher education to offer “Intro to Teaching” or “Intro to Education” PSEO courses.

Civics

The bill does not implement a specific civics education requirement but adds a civics component as a part of the social studies requirement. Schools must also report the percentage of students who graduated the previous school year and who correctly answered 30 of 50 questions on the civics test.

CTE licensure requirements end

Under a provision included in the omnibus bill, a person who teaches CTE courses in Minnesota high schools who be exempt from teacher licensure requirements if the person demonstrates occupational competency based on work experience or industry. The person would not be required to complete a teacher preparation program or meet any of the state’s licensure requirements. This provision was set to end later this year.

Kindergarten readiness

School districts would be required to assess students to determine their readiness for kindergarten based on a provision included in the bill. The commissioner of education must develop and implement a kindergarten assessment to determine young students’ preparedness for formal schooling. The assessment data to be reported with the World’s Best Workforce report and explicitly requires the commissioner to integrate readiness data into the longitudinal data systems by the 2020-21 school year.

Energy and Utilities

Omnibus Energy and Utilities Bill

The provisions in the 2019 Senate Omnibus Energy and Utilities bill are summarized below. (SF 1692)

Solar for schools

A new grant program is created that will provide financial assistance to schools for the installation and operation of new solar energy systems to be located on or near school buildings. This is seen by many as a win-win-win proposal: promoting renewable energy, reducing school energy costs, and giving students a first-hand opportunity to learn about solar energy.

Electric vehicle charging stations

A new revolving loan program established by the Commerce Department would help finance costs of building electric vehicle charging stations around the state. Minnesota’s transportation sector is the largest source of greenhouse gas emissions in Minnesota, and electric vehicles produce about a third less than gas-powered vehicles.

Energy storage

New criteria are set for utility cost-recovery of energy storage system pilot projects, investor-owned utilities are directed to include an assessment of energy storage system in their resource planning, and a cost-benefit study of energy storage is required. These changes will help modernize the Minnesota’s electric grid and work toward making Minnesota a leader in energy storage development.

Prairie island net-zero project

Legislation directs the Department of Employment and Economic Development (DEED) to enter into a grant contract with the Prairie Island Indian Community to provide funding for research, development, and implementation of renewable energy projects that will make Prairie Island a net-zero community. Financed through the Renewable Development Account, this project would make the Prairie Island Indian Tribe one of the first tribes in the United States to offset all of its energy use by becoming a net-zero producer of emissions from energy generation.

Biomass compensation

Claims of businesses affected by the closure of the biomass plant in Benson, Minnesota would be addressed through the Office of Administrative Hearings claims process, with compensation awarded to eligible businesses for their losses. The plant closure had a serious impact on many area businesses and individuals serving the plant who experienced losses through no action of their own. $40 million is directed from the Renewable Development Account for biomass business compensation.

Community solar gardens

The state’s community solar garden program is scaled back, with a 25-megawatt cap placed on the total capacity of solar energy that can be built within the program, and a one-megawatt limit on the maximum capacity for any single community solar garden (about 4-5 acres in size). New consumer protections include detailed disclosures for promotional materials and requirements that ensure sufficient resources to reimburse subscribers for financial losses.

Those favoring the scale-back say community solar has become too expensive, while others see it as a significant rollback of a successful program.

Conservation improvement program

A number of changes are made to energy conservation requirements through the Conservation Improvement Program (CIP), administered by the Department of Commerce, primarily affect obligations for cooperative and municipal utilities. Municipal and cooperative requirements are separated from those for investor-owned utilities, and new flexibility is given to achieve conservation goals. Parameters are outlined for energy conservation and optimization plans and for low-income programs.

Pace program expansion

Legislation allows new commercial development to be eligible for the state’s commercial Property Assessed Clean Energy (PACE) program. This successful program has helped deliver energy improvements to industrial buildings, commercial buildings, nonprofits, multi-family housing, senior care facilities, and farming operations.

Environment and Natural Resources

Andover landfill cleanup

In mid-February, a bill passed and signed into law provides $10.3 million to begin cleanup of the state’s most polluted landfill. The closed Waste Disposal Engineering (WDE) landfill in Andover ranks at the top of the Minnesota Pollution Control Agency’s list in terms of hazard and risks to public health and has been the agency’s highest cleanup priority among the state’s 100 closed landfills. The landfill has been releasing various volatile organic compounds, metals, and other substances into groundwater, although a number of mitigation measures have been put into place to reduce impacts to the surrounding area, providing protection to the community’s drinking water and a nearby creek. The enacted legislation will allow cleanup to begin later this year. (SF 611)

Chronic Wasting Disease response

Environmental committees have devoted substantial time to considering the threat posed by Chronic Wasting Disease (CWD) to Minnesota’s white-tail deer population. The disease is a highly contagious, neurodegenerative disease discovered in the late 1960s, now found in 25 states and three Canadian provinces. In Minnesota, more than 30 wild deer have tested positive for CWD over the past two years, most found in southeastern Minnesota. Since 2002, the disease has been discovered in eight elk and deer farms in the state. Minnesota wildlife officials are working hard to slow the spread of CWD among wild deer in the state’s southeastern counties, trying to keep it confined to a few captive deer farms and relatively small areas of wild deer habitat.

A range of measures to combat CWD have been discussed by environmental committees, including stepped up surveillance and monitoring, facilitation of a rapid and reliable diagnostic test using samples from live deer to facilitate early detection, an “adopt-a-dumpster” program for safe disposal of deer carcasses in areas where CWD has been detected, new requirements for Cervidae farms, and other measures. The hope is to prevent and slow down the spread of this deadly disease with aggressive efforts on a variety of fronts. (SF 2314, SF 1258)

Reeling in new anglers

A new grant program administered by the Department of Natural Resource would provide funds to set up high school fishing leagues. Under the proposal, the DNR would develop basic angling curriculum and establish a grant program focused on the development and expansion of these leagues. Advocates say hunting and fishing license sales and participation rates have been falling both nationally and statewide for years. Last year, Minnesota license sales were at their lowest level since 1976. This proposal is intended to promote youth fishing recruitment, thus sustaining the next generation of anglers. (SF 2314)

Outdoor sports and firearms safety

Expanding school outdoor sports and teaching firearms safety training at school would help get kids off their screens and into the outdoors. A new DNR grant program would allow school districts to apply for funds to expand their physical education curricula, provided the activities are consistent with required state standards for physical education. Activities could include archery, trap shooting, hunting, angling, and firearms safety training in physical education classes taught in Minnesota schools. The hope is to encourage young people to develop a love for the outdoors and outdoor sports that can last a lifetime. (SF 2314)

Two-line fishing

A proposal authorizes anglers to take fish using two lines during the open water season, provided a second-line endorsement is purchased for $5. Proceeds for the $5 second line endorsement would be spent on walleye stocking. Under current law, Minnesota allows one line per fishing license, except two lines are allowed for ice fishing and on the Mississippi River and Lake Superior. Under this proposal, two-line fishing would not be allowed on specially-regulated waters, such as trout streams and lakes. Minnesota’s fishing rules to allow one line have been in place since 1920, and past efforts to allow more lines have not been successful. (SF 2314)

Clean Water Legacy Act

An overhaul of the Clean Water Legacy Act makes updates and improvements to the water laws and local water management programs to achieve coordinated watershed management changes, moving the state more efficiently toward “one watershed, one plan.” (SF 2314)

MPCA small business loan program

This proposal modernizes the Minnesota Pollution Control Agency’s small business loan program, expanding eligibility and bringing loan conditions up to date by lowering allowable interest rates and increasing the maximum loan amount. (SF 2314)

Wild Rice Stewardship Council

A Wild Rice Stewardship Council is created to “foster leadership, collaboration, coordination, and communication among state and tribal government bodies and wild rice stakeholders.” Under the proposal, 13 members with varied designated interests are appointed by the Governor, with initial appointments to include members of the Governor’s Task Force on wild rice established in 2018 by Governor Dayton’s executive order. The DNR and MPCA commissioners appoint one member each, and the Senate and House of Representatives each appoint two members. The council is tasked with a number of duties, including reviewing and considering the recommendations of the Governor’s task force on wild rice, the 2018 tribal wild rice task force report, recommending a comprehensive statewide management plan for wild rice, and reporting and making biennial recommendations on the health of wild rice. (SF 2314)

Health and Human Services

CCAP fraud

The Senate Human Services Reform Committee spent considerable time discussing alleged fraud in public programs this session. In March, the Office of the Legislative Auditor (OLA) released a report responding to specific accusations in the Child Care Assistance Program (CCAP). While the report maintained that child care fraud is a significant issue that the Legislature should explore, it found no evidence to support exaggerated claims of child care assistance dollars being used to fund terrorism.

Disability services

Despite cuts to some disability services, the budget does make needed investments in other programs. This includes eliminating the spend down for individuals with income over the limit to qualify for medical assistance, increasing rates for PCA services for people with complex medical needs, increasing rates for providers under the Disability Waiver Rate System (DWRS), and eliminating Tax Equity and Fiscal Responsibility Act (TEFRA) parental fees for children accessing medical assistance who would otherwise not qualify.

Other noncontroversial provisions

The Senate HHS budget includes several proposals that received bipartisan support in committee, such as funding to continue tobacco cessation services when ClearWay MN dissolves, grants for fetal alcohol spectrum disorder, reducing barriers for people in recovery to help others with substance abuse disorder, and grants that help people with disabilities to access adaptive fitness programs.

Items that have passed Senate Floor:

Opioids

The Senate passed bipartisan legislation in April to combat the opioid epidemic in a decisive 59-6 vote. The legislation raises annual registration fees on pharmaceutical manufacturers and wholesale distributors, charging up to $250,000 to manufacturers responsible for selling the highest quantities of opiates in Minnesota. The goal of this effort is to raise $20 million each year to fund treatment and prevention programs, amounting to only a sliver of the skyrocketing profits made by manufacturers of opiates each year. Advocates argue that drug manufacturers need to pay their fair share for the harm their products have caused and alleviate some of the financial burden borne almost entirely by taxpayers to address this crisis.

The bill also authorizes funding to update the prescription drug monitoring program (PDMP) to make it easier for doctors to use, requires prescribers to check the PDMP before prescribing controlled substances like opiates, and limits the quantity of opiates prescribed for acute pain, such as pain after an injury or surgery, to a seven-day supply for adults and a five-day supply for children. Doctors can still write prescriptions for more than the limit if they believe it is necessary, and prescriptions are not limited for patients experiencing chronic pain. (HF 400)

Prescription drugs

Bipartisan legislation to license key players in the pharmaceutical industry, called pharmacy benefit managers (PBMs), unanimously passed the Senate Floor on a 67-0 vote in April. Licensure makes a strong statement that Minnesotans deserve more transparency at a time when the pharmaceutical industry keeps pointing their fingers at each other over high costs while prescription drugs prices for consumers only rise higher and higher. The legislation would authorize the Minnesota Department of Commerce to license and regulate PBMs operating in Minnesota and requires the companies to share certain information about how they conduct business.

Critics of PBMs point to the use of rebates as a reason why the pharmaceutical industry may have a disincentive to keep prices low. PBMs negotiate rebates from the manufacturers in return for agreeing to add or restrict medications on insurance company formularies. Manufacturers can keep raising prices and steering customers to certain medications while PBMs benefit because they keep a portion of the rebates they secure. Licensing PBMs will shine a light on an extremely complex system that lawmakers see as a crucial first step toward reigning in high drug prices for Minnesotans. More information will help everyone, from lawmakers to patients, make better decisions that make health care more affordable and put patients first.

The House has included their companion bill in the health and human services omnibus bill, so the legislation will be considered in a conference committee. (SF 278)

Reinsurance

Minnesota passed a program in 2017 to lower the cost of health care premiums for plans offered on the individual health insurance market. The bill allocated $542 million to insurance companies to help mitigate the risk of high-cost claims. It was a two-year program set to expire this year.

The Senate passed a bill off the floor before break that would allow the program to continue through 2022, using already allocated funds that remain unspent since the 2017 authorization.

The program was part of many factors that did lower the average cost of premiums on the individual market in 2018 and 2019; however, it also came with problems. The federal government reduced the amount of money sent to Minnesota for other health care programs by more than $200 million after approving the reinsurance program, and it unexpectedly cut another $100 million in funding in December 2018. Further cuts to federal funding for the program can be expected.

Beyond federal funding issues, many Senate DFLers are concerned that this plan sends more than a half-billion dollars in state money to insurance companies but did nothing for direct consumer premium relief or to achieve long-term, sustained rate reductions.

A number of DFL amendments were offered on the floor, all of which aimed to improve the bill and protect consumers. All but one, which added a reporting requirement, failed to make it into the bill.

It remains to be seen what will happen with reinsurance and the health care conversation in general, but it will certainly be part of the discussion as the legislature moves closer to the end of session. (SF 761)

Provider tax

The provider tax is a 2% gross revenue tax at the provider level for medical services and hospital stays, aimed at increasing accessibility to quality health care for low-income Minnesotans. The provider tax primarily funds medical assistance, which covers nearly 15% of all Minnesotans, almost a quarter of all children, and half of all Minnesotans with disabilities and those residing in nursing homes.

A broad coalition of groups, the House DFL, and the Governor are all advocating to repeal the December 2019 sunset of the provider tax to protect vulnerable populations as well as the state’s budget. The provider tax is the largest source of funding for the Health Care Access Fund (HCAF) — if funding for it ends, many Minnesotans will be at risk of losing their medical assistance benefits, endangering their long-term health care needs. Senate Republicans realize this – their budget uses $521 million of the state’s $1 billion surplus to make up for the lack of provider tax funds in this account.

This will be a critical discussion of how best to proceed. You can expect future updates from me on this particular subject as I will work with all involved to find the best solution.

Medical cannabis

The Senate HHS Committee considered a bill to address certain barriers to the state’s medical cannabis program. Since registry began in 2015, over 7,000 Minnesotans have dropped their enrollment in the program due to high prices and other restrictions.

The bill authorizes use of industrial hemp in the medical cannabis program, doubles the number of authorized distribution centers in the state (from four to eight), permits health care practitioners to re-certify patients for medical cannabis remotely via telemedicine, and authorizes the possession of medical cannabis in schools. This school restriction under current law has served as a barrier for families and student patients who must be taken out of class and off school grounds during the day to take their medicine. Though the legislation does address some of the barriers to care, it is still criticized by some medical cannabis supporters for not doing enough to increase affordability. The bill has stalled in the E-12 Committee. (SF 1070)

Portions of the bill have been included in the HHS budget bill; however, access to medical cannabis on school grounds was not included. (SF2452)

Tobacco cessation and tobacco 21

QUITPLAN Services is a nonprofit organization that provides free tobacco cessation services to all Minnesotans. It was funded through a portion of the Minnesota tobacco settlement revenue that tobacco companies were ordered to send the state in 1998.

QUITPLAN was created with a strict timeline and funding is scheduled to cease in March 2020, which would make Minnesota the only state in the nation to not offer a free cessation service. A bipartisan bill heard in the Health and Human Services Reform Committee and included in the HHS budget bill would fund a new smoking-cessation program through the Minnesota Department of Health to continue the important work of addressing tobacco addiction among Minnesotans. (SF 461)

Bipartisan legislation to raise the age to purchase tobacco products was heard in the Senate Health and Human Services Committee in February. The legislation would make 21 the legal age to purchase tobacco products in every corner of the state. It has the support of dozens of health care and patient advocacy organizations, and 23 cities and counties have passed similar ordinances in Minnesota. Numerous studies and surveys lay out a strong case for raising the age to purchase tobacco statewide, but the bill has been left sitting in the Judiciary Committee. (SF 463)

Mental health

An omnibus bill of mental health provisions is still moving through the committee process. The bill includes every mental health-related proposal from across the Senate’s budget jurisdictions, like agriculture, health and human services, and education.

Among the many grants and programs included in the bill, there is funding for a new mental health crisis hotline to fill the void after the state-based hotline shut down last year, grants for mental health services at Minnesota state colleges, school-linked mental health grants, shelter-linked mental health grants to provide services to youth experiencing homelessness or sexual exploitation, a community competency restoration task force, and funding for mental health counseling to support farm families and business operators.

All of the appropriations in the bill remain blank, but Senate DFLers are hopeful that the bill will ultimately contain adequate funding to make real progress in building out the state’s mental health system. (SF1)

Higher Education

Higher Education Omnibus bill

The 2019 Higher Education Omnibus Bill funds the Office of Higher Education, the University of Minnesota, and the MinnState system.

The Office of Higher Education receives only $24.586 million dollars. $23.4 million of that appropriation is to be spent on student grants; the governor requested $43 million for the same program.

The remaining $1.1 million may be used for increases across a number of programs run by the office, including College Possible, summer academic enrichment, emergency assistance for post-secondary students, teacher shortage loan forgiveness, student loan debt counseling, the Independence Life College, Fab Lab, and teacher prep design grants.

The University of Minnesota has requested $87 million for core missions, as well as $200 million in higher education asset preservation (HEAPR) funding and $32.3 million in capital requests in a possible bonding bill. However, the Senate Republican budget recommends only $28.514 million for the U of M.

MinnState has requested $246 million, including $169 million in inflationary increases, $111 million for salary and benefit increases, $37 million to replace outdated information system, $25 million for new scholarship programs, and $150 million in capital requests.

The Senate Republican budget recommends only $46.9 million for MinnState. (SF 2415)

Tuition control

Pressure to control rising higher education tuition costs has gained momentum at the Capitol this session. The Senate Republican higher education bill requires tuition control for both the U of M and MinnState.

MinnState may not increase the 2019-20 academic year by more than 2% of the 18-19 academic year, and for the 20-21 academic year the tuition rate must not exceed the 2019-20 tuition rate by more than 1%.

The tuition relief may not be offset by increases in mandatory fees, charges, or other assessments to the students.

The U of M may not increase the 2019-20 academic year by more than 2% of the 18-19 academic year, and for the 20-21 academic year the tuition rate must not exceed the 2019-20 tuition rate by more than 2%.

Students have supported a freeze, although it was not part of the governor’s proposal. Opponents suggest that a “freeze” can be costly to institutions if the investment from the legislature doesn’t fill the hole left by a tuition cap. MinnState estimates that the tuition control provision would cost the system $25 million.

Online tuition rate capped

As an additional effort to control tuition costs, the bill requires that institutions may not charge more for an online course than they do for an on-campus classroom course. Higher education officials assert that this change could cost the institutions as online courses are expensive due to the various technology needs and related costs.

Student loan requirement changes

State grants are awarded to students based on their specific family income and their ability to contribute to the costs of college attendance, known as assigned family responsibility, and on recognized cost of college attendance, including miscellaneous living expenses. The Senate bill changes those parameters, which will bring more students into the program.

Assigned family responsibility changes are decreased from 84% to 78 for dependent students, from 76% to 70% for independent students with dependents, and from 40% to 34% for independent students without dependents.

Living and miscellaneous expenses are also increased from 101% to 105% of federal poverty guidelines.

These changes mean more students could be awarded grants or that the grants awards will increase. It is not clear if the $23.4 million included in the bill will cover the changes.

Administrative cost reduction report

The Senate bill requires both the U of M and MinnState systems report by July 1, 2020 how they would achieve a 10% reduction in administrative costs by July 1, 2021. Questions have been raised about what defines “administrative costs” and whether such a report would help lower tuition increases for students. Implementing a 10% reduction could mean anywhere between $30 million – $160 million depending on how the term is defined, according to U of M officials.

Higher education contract negotiation limits

A provision limits the amount MinnState can negotiate with employees based on state appropriation amounts available. This bill mirrors SF 1877 which has been heard in the State Government Committee and constrains how union contracts for state employees may be negotiated. No contracts would be allowed to be negotiated beyond the amount of money appropriated that will cover the negotiated cost. The effect of this bill would mean the legislature would need to appropriate funding based on any collective bargaining agreement before it could go into effect, unless an agency anticipated contract changes and reflected those changes in their spending plan. The provision has no House companion.

Advisory council on rare diseases

The University of Minnesota is asked to establish an advisory council on rare diseases that will meet and provide resources and services to people diagnosed with rare diseases. A report is due annually to the legislature beginning January 1, 2020.

Controlling textbook costs

Three provisions in the Senate bill attempt to control rising costs of college education materials and textbooks.

Z-degree

The bill provides $250,000 to MinnState to develop and offer courses to implement the Z-Degree program, which provides a no-cost textbook associate degree. Instructors must review and approve open educational resources for use in a course. Opponents question the mandate that instructors only use open educational resources for these programs if the material doesn’t meet quality standards or the needs of the coursework.

Inclusive access pilot

A $50,000 grant is to be awarded to a MinnState institution through OHE for a pilot to design and implement an inclusive access textbook policy for digital textbooks. Inclusive Access is a Pearson (testing) Company program providing access to digital course content when instructors are using interactive Courseware platforms or e-books in place of printed text. The pilot must expand use of inclusive access to at least 60% of courses offered. The funds would be used to pay for the program.

Capital investment

A proposal making modifications to the bonding bill passed last year was signed into law by Governor Walz. The proposal transfers projects funded in the 2018 bill from bonds backed by the environment and natural resources trust fund to general obligation (GO) bonds. As a result, $98 million in revenue bonds were converted to general obligations bonds. Additionally, $4.3 million was added to the GO bonds issued for the Waste Disposal Engineering (WDE) site in Anoka County that needed immediate attention. (HF 80)

Direct primary care

A bill that establishes a direct primary care system has passed off the Senate floor 67-0 and is awaiting action in the House.

Direct primary care service arrangements are agreements between primary care providers, typically a doctor or specialist, and a patient that allow the patient to pay for services out of pocket without going through insurance. Doctors charge a monthly fee to provide routine medical care. Other more serious, time consuming, or equipment-heavy procedures are covered by an insurance policy – if the patient has one.

Direct primary care arrangements already exist in Minnesota; the passed legislation adds guard rails to the system. A number of amendments adopted in Commerce Committee before the bill was sent to the floor made the bill more consumer-friendly. (SF 277)

Jobs and Economic Growth

Equity Funding

In the face of extreme income inequity, the 2016 Legislature took historic steps in addressing workforce training and business development for unserved and underserved communities.

Since then, equity funding has received bipartisan support in both House and Senate Chambers. To continue this critical funding in the upcoming biennium, legislation (SF 2483) was introduced in the Senate. The omnibus proposal funds a portion of the proposal, but it falls short for several important development programs. (SF 2611)

Wage Theft

Wage theft is a serious issue for workers across the state. The Department of Labor and Industry estimates 39,000 Minnesotans are impacted by wage theft per year, resulting in $11.9 million in unpaid wages.

Provisions within the Senate omnibus jobs bill include enhanced penalties for wage theft; however, there are several issues with the proposal. As reported by the Department of Labor and Industry, “…[T]he wage theft policy language requires workers to make a written demand to their employers for wages they believe they are owed. This requirement could subject vulnerable workers who make a written demand to retaliation by their employers and make investigations by the Department more difficult…” (SF 2611)

Veterans hiring preference

A bill that requires veterans be given due consideration when applying for jobs at the Legislature and in the state courts system passed out of Veterans Committee early in session.

Veterans have a higher unemployment rate than the average population, and disabled veterans have a disproportionately higher unemployment rate than the average population.

The bill was passed out of the Veterans Committee and sent to State Government, but it is unlikely to move any further in the process this year. (SF 331)

Veterans and veterans’ spouses homestead tax exclusion

A number of veterans bills heard in committee this session would make changes to the state’s disabled veterans homestead tax exclusion.

The homestead valuation tax exclusion allows for all or a portion of the market value of a property owned by a veteran and serving as the veteran’s homestead to be excluded from determining the property’s taxable market value, if the veteran meets a disability threshold. For veterans that have a disability rating of at least 70%, $150,000 of the market value is excluded, and for veterans that have a disability rating of 100%, $300,000 of the market value is excluded. Veterans’ spouses may continue to receive the exclusion for up to 8 years after the death of the veteran.

A bill that would make the tax exclusion transferable to new properties if a spouse moves as well as a bill that would make the exclusion permanent for veterans’ spouses were both passed and sent to the Taxes Committee.

An additional bill that would make information sharing about veterans and veterans’ spouses who qualify between county veterans service officers and the county accessor easier also passed out of both the Veterans and Judiciary Committees and were sent to the Taxes Committee.

Whether any of the bills were included in the Senate tax bill won’t be known until the tax bill is released, which won’t happen before break. (SF 114, SF 113, SF 58)

It is my greatest honor to represent you the citizens of Brooklyn Park, Champlin and Coon Rapids here at our great state capitol. In addition to representing you, I absolutely enjoy it when you come visit.So come on down, reach out and tell me what matters to you so I can continue working on your behalf. You can reach me by email at sen.john.hoffman@senate.mn, phone by 651-296-4154 or just stop by. I am at 95 University Avenue Suite 2231 in the Minnesota Senate Building