Volume 6, Issue 19
May 21, 2021
Photo from the Floor
A weekly message from your Senator
Dear Constituents and Friends,
On Monday, we adjourned the 2021 legislative session. The 2022 legislative session will not start until January 31st, 2022. As I have mentioned before, 2021 is a budget year, so we start in early January. Next year is not a budget year, so we start the legislative session at the end of January 2022. Just because finished the regular legislative session, does not mean that we finished the work for this year, there will be a special session in June, and then we will move on from there.
Before adjournment on Monday, Governor Walz, Senate Majority Leader Gazelka, and Speaker of the House Hortman announced budget targets. These budget targets will shape each conference committee budget. To ensure a timely conclusion, working group members (previously known as conference committee conferees) and commissioners must complete their finance spreadsheets by 5:00 pm on Friday, May 28th, 2021. Then language will have to be agreed upon by June 4th. As we learn more about the federal fund allocations, we will agree on budget bills and get them passed.
I will continue to push for legislation that supports our district and Minnesotans around the state. Throughout the newsletter, I will share some provisions that are being considered in omnibus bills and what is missing. When I learn more information from working groups and what the budget bills are shaping out to be, I will share the information with you.
On Monday, May 24th Senate District 49 will be holding a Town Hall in coordination with the League of Women Voters of Edina and LWV of Bloomington. I hope to share more information with you about the status of our budget and what the special session may look like in June. I hope to see you there.
Sincerely,
Melisa
Senate District 49 Town Hall
Senate District 49 legislators will be hosting a Zoom Town Hall in coordination with the League of Women Voters of Edina and LWV of Bloomington on Monday, May 24 at 7:00 PM. While the event will occur on Zoom, we will make sure it is live-streamed and posted on each legislator’s Facebook pages for those unable to join us.
You can register for the event here: https://forms.gle/ 4hQ5vYk8iNaaeXQf7
Pre-submitted questions will be given priority and you will receive a link to the Zoom meeting a day before the event through the email you enter during registration.
Budget targets
The Governor, Speaker of the House and Senate Majority Leader announced budget targets on Monday morning. Below you can see the allocated spending in millions for each spending group. Conference committees will use the targets below to shape omnibus bills.
Global deal
The following are agreed upon by the Governor, Speaker of the House, and Senate Majority Leader:
1. The Governor, Speaker of the House and Senate Majority Leader agree to global targets for budget and tax bills as outlined
2. The COVID Flexible Fund will fund the following specific proposals:
a. $75 million for Summer Learning;
b. $7 million for state government for operating deficiency and remote work; and
c. $12 million for continued operations of the Minnesota Zoo
3. Housing target includes debt services $100 million for Housing Infrastructure Bonds. If Congress passes a federal infrastructure bill in 2021 that includes funding for the same purpose these bonds will not be sold.
4. $70 million for broadband funding source and bill to be determined.
5. The remaining American Rescue Plan Act (ARPA) State Fiscal Recovery Fund (SFRF) of $1,233 billion will be jointly agreed to in the 2022 Legislative Session.
6. The Governor, Speaker of the House and the Senate Majority Leader agree to increase the budget reserve level in M.S. 16A.152, subdivision 2, paragraph (a) from $1,596,522,000 to $2,377,319,000. This change will be included in the taxes omnibus bill.
7. Any policy and finance provision included in a final omnibus finance bills must be agreed upon by the Governor, Speaker of the House, and the Senate Majority Leader.
8. The Governor, Speaker of the House and Senate Majority Leader agree the appropriate commissioners and committee chairs shall work cooperatively to reach agreement within the target for conference committee reports.
9. To ensure a timely conclusion working group members and commissioners must complete their finance spreadsheets by 5:00 pm on Friday, May 28, 2021. Language agreed to by June 4th.
10. The global budget targets agreement reached by the Governor, Speaker of the House Senate Majority Leader does not ensure approval of any omnibus bill
Legislation passed this week:
Agriculture:
Small policy bill:
- Extend the state’s farmer-lender mediation act for another five years
- Expand opportunities for cottage food businesses
- Allow small meat processors or “garage processers” to maintain their businesses without what can be costly burdens.
- Several other small policy provisions that will help improve the lives of farmers and the agriculture economy in Minnesota were also included.
Energy Conservation and Optimization (ECO) Act of 2021:
The Senate passed the final conference committee report for the Energy Conservation and Optimization (ECO) Act of 2021. The ECO Act is the result of three years of discussions and negotiations between stakeholders about the future of programs designed to use less energy and save Minnesotans money. Its passage will bring the largest update since 2007 to the state’s nearly 40-year-old energy conservation improvement program (CIP).
- The bill increases the amount utilities must spend on energy conservation efforts
- Improvements for low-income households.
- It also provides a path for limited and efficient fuel-switching programs, which will allow utilities to switch to the use of another fuel that is more efficient, cost-effective, and produces lower greenhouse gas emissions.
- It increases the state’s energy savings goals
- Completes a transition for energy conservation requirements from programs based on how much a utility spends on energy efficiency to programs that are based on the amount of energy savings that are provided for customers.
This year’s bill represents a broad level of consensus among a vast number of groups, including clean energy and environmental advocates, labor unions, investor- and consumer-owned utilities, state agencies, and consumer advocacy groups. After the conference committee reports was passed by both chambers, it was sent to the governor’s desk, where it awaits his signature. (HF 164)
Health and Human Services
A package of health and human services policy proposals agreed upon by House and Senate conference committee members passed the Legislature this week and is on its way to the governor for signature. As the committee waited for budget targets, they selected non-controversial provisions and same or similar items from the Senate and House HHS omnibus bills to include in the conference report.
Notable items included in the committee report are:
- Updates to the Office of Medical Cannabis program to include raw flower
- Extending the Governor’s Council on an Age-Friendly Minnesota
- Removing mandatory prenatal substance use reporting requirements by health providers if the patient or baby is receiving care
- Protections against discrimination for people with disabilities in organ transplant decisions
- Policy related to the federal Family First Prevention Services Act focused on reforming our child protection system
- First steps of the Mental Health Uniform Service Standards project that will simplify and standardize mental health licensing and regulatory requirements
- Direction to the Department of Human Services to develop a Medicaid-reimbursable recuperative care service, focused on addressing medical stabilization for people experiencing homelessness
Psychology Pact (PsyPact):
The House and Senate passed a bill this week to expand access to mental health services across state lines. If signed by the governor, this bill would allow Minnesota to join 14 other states into the Psychology Interjurisdictional Compact, or PsyPact,
- Allow certain psychologists to engage in telepsychology or face-to-face mental health services with patients in other member states in the compact without needing additional state licenses.
- Participating psychologists must have a current, active license based on a doctoral degree to participate in this program.
- PsyPact will provide continuity of care if someone relocates or travels out of state and wants to continue to use their current mental health provider.
- There’s also language to enhance patient protections and require anyone practicing as part of the compact to be aware of local resources in case of an emergency.
As we recover from this pandemic, entering into this multi-state agreement will be another tool to improve access to care and promote cooperation between states regarding licensure and regulation. (SF 193)
State Government
Most of the provisions in this bill are either technical or administrative,
- Secretary of State and Campaign Finance Board agency bills.
- The creation of a Capitol Flag Program to fly flags on the Capitol grounds and have those flags available to the family members of public safety officers killed in the line of duty or members of the United States Armed Forces who have died while in active service.
- Another provision added in conference committee will allow federal funds to be used for the construction of three new veteran homes in Preston, Montevideo, and Bemidji. (HF 1952)
Conference Committee/Working Group Updates:
Environment:
What is still left on the line to accomplish for Minnesotans this year? Here are some of the top issues:
- Budgets for the following state agencies: Department of Natural Resources, Pollution Control Agency, Metropolitan Council (for metro area parks and trails), Board of Water and Soil Resources (BWSR), Minnesota Zoo and the Science Museum, Minnesota Conservation Corps, and the Minnesota Board of Tourism
- Funding for projects recommended by the LCCMR, including leftover work from 2020 and new projects recommended for 2021
- Policy and financial provisions to help the state tackle the growing problem of PFAS pollution
- Necessary, noncontroversial policy changes requested by state agencies to assist them in their work and critical resource management
- Funding to address pollution in landfills, our air, our soil, and our waters, especially within areas of environmental justice concern
- Grants to assist local communities in the establishment and implementation of climate adaptation and resiliency plans and forestry resources to aid in carbon sequestration
- Funding to address aquatic invasive species and chronic wasting disease
If Senate Majority continue to refuse to come to the table to talk through differences, Minnesotans will see the closure of state agencies tasked with managing our state parks and trails, recreational activities, and pollution mitigation among other things come July 1. The time to work is now. (SF 959)
Omnibus Tax Bill
Senate target: ($591 million) ’22-23 | ($142.9 million) ’24-25
Global target: ($754 million) ’22-23 | ($180 million) ’24-25*
*This includes full PPP and UI conformity, which costs $643.9 million/$47.5 million
Remaining target after PPP and UI: ($110.1 million) ’22-23 | ($134.3 million) ’24-25
The global budget targets include an agreement to fully conform to federal tax changes regarding PPP forgiven loan amounts received in 2020 or 2021, and unemployment benefits received in 2020. The total cost is $643.9 million this biennium and $47.5 million in the next, which takes much of the tax target.
PPP loan federal conformity
Senate bill: Full conformity ($409.1 million) – the full amount of forgiven PPP loans may be excluded from income, and business expenses supported with PPP loans also may be deducted from income.
House bill: Partial conformity ($240.6 million) – PPP loan amounts up to $350,000 may match federal tax treatment; remaining amount subject to current MN tax law.
Agreement: Full conformity ($409.1 million)
Unemployment benefits federal conformity
Senate bill: Partial conformity ($28.5 million) – up to 18% of unemployment benefits received in 2020 may be subtracted from income
House bill: Full conformity ($234.8 million) – up to $10,200 of unemployment benefits received in 2020 may be subtracted from income
Agreement: Full conformity ($234.8 million). This will provide about 553,900 Minnesota returns an average tax reduction of $486 for Tax Year 2020.
The Department of Revenue’s website will be updated with guidance once the Legislature passes a tax bill:
https://www.revenue.state.mn.us/tax-law-changes.
- You can also sign up for instant email alerts on the webpage
- In the past, the Department has been able to automatically adjust many tax returns without additional taxpayer action required.
For individuals who may have been unable to file or pay by May 17 due to extenuating circumstances, the Department of Revenue’s COVID-19 page offers advice for requesting penalty abatements: https://www.revenue.state.mn.us/penalty-abatement-individuals.
Major outstanding items in the tax budget
Once the PPP and UI changes are adopted, the global targets reserve $110.1 million this biennium for additional tax expenditures, and $134.3 million next biennium.
A sampling of major items included in the House and Senate omnibus tax bills that will need to be negotiated in the coming days: HF 991
Major House items Major Senate Items
| County grants for business relief ($70m) | Child care provider property tax credit ($24m) |
| Working Family Credit expansion ($59m) | Housing Tax Credit ($20m) |
| Historic Rehab credit ($19m ongoing) | Historic Rehab Credit ($14m one year) |
| Student loan credit changes | K12 subtraction, credit increase ($5.2m) |
| Tobacco Cessation ($15m ongoing) | Tobacco Cessation ($5m one year) |
| Statewide business property tax exclusion up to $150,000 | Statewide business property tax exclusion up to $150,000 |
| Angel Investment Tax Credit extension ($10m) | Angel Investment Tax Credit extension ($10m) |
| Homeless Prevention Aid to Counties ($25m) | Liquor spoilage credit for brewers, retailers ($3.4m) |
| Increase in Homestead and Renters’ refunds ($31m) | C-option filing (SALT cap relief) |
| Sales tax exemption – public safety facility construction | Sales tax exemption – public safety facility construction |
| Workforce and Affordable Homeownership Development Program | Ethanol retailer tax credit ($5.3m) |
| Film production credit ($20m) | Restaurant PPE sales tax exemption ($9.5m) |
| 4d low-income housing study | 4d low-income housing rate change |
Commerce & Energy
The conference committee on the omnibus Energy and Commerce bill met six times during regular session and adopted a handful of provisions, including:
- Extending the cold weather rule protections by expanding the window by an additional two weeks in the spring and an additional two weeks in the fall, so the period of protections runs from October 1 to April 30
- Establishing the Minnesota Efficient Technology Accelerator to accelerate the deployment of increasingly efficient technologies through various initiatives
- Establishing the State Conservation Revolving Loan Fund for energy efficiency upgrades to state-owned buildings
- Providing funding for various projects in the state, including a solar production project in Mountain Iron, MN and a clean energy training center in North Minneapolis
- The Natural Gas Innovation Act, with amendments and improvements to the original proposal using stakeholder input
Major outstanding items in the Commerce area:
E pull-tab design clarification
The omnibus commerce/energy bill contains language from HF 2366, which clarifies the features that can be used in electronic pull-tabs and electronic bingo charitable gambling games. The Senate bill was referred to State Government but never heard.
Specifically, the House language clarifies that instead of pressing buttons, players must swipe left or right, and the results must be displayed like a paper pull tab or a bingo card so as not to mimic the gameplay of video slot machines. Supporters say keeping the features closer to paper pull-tabs better matches the original agreement made by the lawmakers and the tribal community when the stadium legislation was signed in 2012. Opponents include charitable gaming organizations, bars and restaurants that have benefited from the increased e-pull-tab revenue in recent years.
Price gouging
Minnesota is one of 14 states that do not have some type of anti-price gouging law on its books. One of the first Executive Orders Gov. Walz imposed after the pandemic began prohibits anyone from selling consumer goods or services for an amount that represents an unconscionably excessive price during the pandemic (Executive Order 20-10). Once the emergency expires, this temporary executive order also will be nullified.
The omnibus commerce/energy bill includes language that would permanently etch these restrictions into Minnesota law. The Senate Commerce Chair refused to hear the bill (SF 965), even though this item was included in Gov. Walz’s letter to the Legislature outlining steps toward ending the peacetime emergency. The House also passed the stand-alone bill during regular session in addition to including it in this omnibus bill.
Catalytic converter theft
Two bills under the Commerce Committee’s purview would address the dramatic rise in catalytic converter thefts occurring across the state, but neither have received a hearing in the Senate (SF 890, SF 206). Senate Majority members also rejected an amendment to the omnibus bill to include the language of SF 890. The House’s omnibus bill appropriates $200,000 from the auto theft prevention account for a catalytic converter theft prevention pilot project.
Reinsurance
The Senate passed SF 694 in February, which proposed using remaining funds in the Minnesota Premium Security Account to pay for an additional, fifth year of reinsurance through plan year 2022 – a move that also would require a new federal waiver. In their omnibus commerce and energy bill, the Senate Majority added $150 million to pay for an additional year extension through plan year 2023, with the option of extending through 2026. The House bill did not contain any reinsurance language.
Major outstanding items in the Energy area:
Solar for schools
The Senate passed $8 million in Renewable Development Account (RDA) spending to create a grant program to encourage and reduce the cost of installing solar energy systems in school districts throughout the state. The House bill appropriates additional funding, so the final bill will arrive at a compromise between the two positions.
Relief for Minnesotans, municipal utilities after 2021 Polar Vortex
Though not included in either chamber’s omnibus bill, relief is still needed for Minnesotans impacted by the polar vortex that impacted the entire state in February 2021. Estimated by agencies and utilities to require a nearly $100 million investment to provide assistance when the bills come due later this year. The Senate passed emergency funding in the form of a loan account (SF 1018) for municipal utilities that faced bills due much sooner, but the funding has not been sent to the governor’s desk.
Electric vehicles
The House bill included many different provisions pertaining to electric vehicles that were not included in the Senate’s bill. Among the provisions included in the House bill are proposed rebates for Minnesota residents and businesses and a provision that would create a state preference for electric vehicles within the Department of Administration when the state purchases vehicles for its fleet.
Clean Energy First
Another provision that was included in the House bill but not in the Senate, Clean Energy First would create a preference for renewable energy and carbon-free resources. Though unlikely to pass this session, it is considered a top priority for many.
E-12 Education
Other areas of potential agreement are investments in:
- Teachers of Color
- Mental health initiatives
- Special education and English language learner cross subsidies
- Nutrition and community education
Before the gavel dropped to close the session, the conference committee agreed on a number of provisions that will likely be part of the final bill passed in June:
- Notification of school staff, students and parents if there is a threat of an environmental hazard. The notice must also include information about what to do to reduce harm
- Anti-lunch shaming and debt collection procedures for schools
- Religious observance school absence notification for parents
- Special education COVID recovery learning services and supports
- Limits on Pre-school student screen time;
- Academic standards implementation suspension
Higher Education
There were some positive funding initiatives:
- Hunger Free campus zones and basic needs resource grants.
- Aspiring Teachers of Color grants
- Summer academic enrichment programs
- Aid to Non-Metro colleges.
A few policy provisions were adopted prior to the end of the regular session:
- State Grant Eligibility providing additional semester of eligibility for those who care for a sick loved one;
- State Grant Awards – Excludes developmental education from counting against semester cap;
- Child Care Grant Eligibility – Allows an additional semester of eligibility for students who care for a spouse, child or parents with a serious health condition;
- MN Indian Scholarship Program – Expands eligibility to include members or citizens of tribes and allows full year scholarship awards;
- Higher Learning Commission – Requires institutions be accredited by the Higher Learning Commission;
- Permanent Student Records – Requires both private and out of state institutions and private career schools to maintain records related to students’ professional licenses for ten years;
- Proration – Clarifies private career school refund procedures for a student not completing an instructional program;
- Rare Disease Advisory Council – Name changed to include Chloe Barnes added to the title.
Lift Bridge Brewing Tour
On Thursday, I toured Lift Bridge Brewing in Stillwater with a few other women legislators. We met with brewery representatives from Lift Bridge, Surly, and Castle Danger to discuss the #FreeTheGrowler movement. As the minority lead for the Commerce and Consumer Protection Committee, it is important that I learn more about the topic. Earlier on in the legislative session, I met with Sean Ewen, a constituent and owner of Wooden Hill Brewing in Edina. Liquor bills are referred to the Commerce Committee, and while Chair Dahms has not taken up any hearings on the bill I think that it is important to meet and listen with people who are passionate about the bill.
Congratulations to all of the Normandale Community College students that graduated this past semester and participated in their virtual commencement ceremony on Monday!
This month is Mental Health Awareness Month
Children’s Mental Health Resources
Crisis Resources
NAMI Helpline
Crisis Text Line: Text MN to 741741
Children’s Crisis Teams: 612-348-2233
Help is just a call/text away