Sen. Ron Latz (SD46) Update: March 27, 2020

CAPITOL UPDATE MARCH 27, 2020: LEGISLATION IN THE WAKE OF COVID-19

In the past few days, the Minnesota Legislature and the United States Congress passed legislation to aid Minnesotans and Americans in this time of need. Below you will find information to what is included in the state government spending package. Although the Minnesota Legislature did not address funding for workers on the front lines like school hourly workers and first responders, I am working hard along with my colleagues to support them in the coming future. I expect the Senate and House will come back, in conjunction with the Governor, to support workers and businesses across our state in the coming weeks.

On a more personal note, please be sure to stay safe during this time. Do not take this lightly. Stay at home if you possibly can, and if you have to go out, keep your distance. Wash your hands and don’t touch your face! The virus is highly likely to enter you through your eyes, nose and mouth – keep your hands away. And support each other. We will come through this.

Ron

Minnesota Legislature passes $331.5 million COVID-19 funding bill

ARTICLE 1
Sec. 1: DVS Temporary Staffing

• Provides $2.4 million to the commissioner of public safety for temporary vehicle services employees to process and issue drivers’ licenses and ID cards.
•      This funding is necessary to address the imminent backlog of      applications for new and renewal DLs after the peacetime public health      emergency ends.
•      147 driver and vehicle services, deputy registrar, and drivers’ license             agent offices have closed or are offering limited services across the      state to adhere to social distancing guidelines.
• These one-time resources are available until December 31, 2020 and must be used to accomplish a turnaround time of 45 days for applicants to receive their ID.
•      Once this timeline is accomplished, the commissioner must reduce               temporary staffing to maintain an average turnaround time of 45 days.
• No funding may be used for permanent staff, and it is only dedicated for the  processing and issuing of driver’s licenses, not for behind-the-wheel exams, which have been halted statewide.

Sec. 2: Peacetime Emergency Child Care Grants

SUMMARY:

• This proposal is for emergency childcare grants for programs who can prioritize space for emergency workers and are being strained by enrollment fluctuations and increased operating costs due to COVID-19.
• $29,964,000 appropriation from the general fund to DHS and directed to Child Care Aware, who is responsible for developing the grant application and administering grant funding with help from their regional childcare resource and referral programs.
• The Children’s Cabinet estimates childcare programs have lost nearly 70% of their daily attendance due to COVID-19 and need emergency funding to stay afloat.

DETAILED SUMMARY:
Eligible programs:

• Licensed (in good standing) childcare centers, family childcare, or group family childcare.
• Tribally licensed child care programs.
• Other programs as determined by the commissioner.

Grant requirements. Eligible programs must agree to:

• Prioritize space in their programs for the children of critical infrastructure, essential, and emergency workers.
• Maintain service throughout the grant period or until the peacetime emergency declaration ends. Exception for any discontinuation in response to direct public health guidance.
• Use health and safety practices to prevent the spread of COVID-19 (ongoing guidance should be provided by DHS using MDH recommendations).

Grant amounts:

• Monthly award of $4,500 per program for family and center-based programs.
•      Programs that serve children during non-standard hours, serve children      whose first language is not English, or serve children with special needs      may receive an additional $1,000 monthly.
•      Based on capacity, monthly grants of up to $15,500 may be awarded to      childcare programs that are licensed to serve 15 or more children.
• Child Care Aware and regional resource and referral programs will prioritize equitable distribution of grants.
• Providers may charge fees to families attending their programs, but not to families whose children were attending prior to the peacetime emergency and are no longer attending.
• Providers that receive grants must allow children who were attending their programs prior to the peacetime emergency order to re-enroll after the declaration ends, to the extent which capacity is available.
• The authority to award grants expires the day after the peacetime public health emergency ends.
• Total Appropriations: One-time appropriation, canceling on December 31, 2020.
•      $29,964,000 appropriated in FY20 from the general fund to DHS for      emergency grants. Of this amount, up to $450,000 can be used for      administrative costs. This was lowered from $635,000 in earlier drafts      due to House & Senate Republican concerns.
•      Broken down, this appropriation translates to about $615 per child per      month for three months.

BACKGROUND: 

• Childcare in MN:
•      Recent survey data shows 424 centers and 923 family childcare      providers willing to remain open and serve emergency workers, with an      estimated 12,514 slots available.
•      Demographic and survey data show that based on estimated uptake,      emergency and essential workers may need up to 64,345 slots for      children ages 0-5.
• Many childcare providers are strained with losing tuition from disenrollment but increasing costs to staffing needs and adaptations to meet public health recommendations. Across the state, it’s estimated that childcare programs have lost upwards of 70% of daily attendance and without emergency funding, childcare centers and family childcare programs will be unable to cover their fixed costs (rent, payroll, property taxes, etc.). In a survey conducted by NAEYC of over 6,000 providers, 30% said they would not survive a closure of more than 2 weeks.
• Child Care Aware is Minnesota’s Child Care Resource & Referral system. Minnesota has a childcare resource and referral agency for each region in the state who have existing contracts with DHS. Money appropriated in this proposal would pass through DHS to these regional agencies, who would determine how to allocate grant funding.
• Governor’s Emergency Executive order 20-12 allows DHS to modify ratio and licensing requirements to accommodate providers eligible for these grants.
• DHS already waived certain requirements for CCAP under the Governor’s EO:
•      Allowed payment for absent days, creating flexibility for medical      documentation and allows programs that close because of the pandemic      to continue billing childcare assistance.
•      Extended CCAP registration for any provider who was due to renew      registration in the next three months.
• The MN Child Care Association (MCCA) submitted a proposal to the MN Legislature that totals to around $60 million, suggesting monthly payments to centers from $15-30K depending on the number of children served or $2,000/month to family childcare providers. They also suggest waiving the May 15th property tax payments and creating more flexibility in CCAP to support emergency workers and current CCAP recipients, such as by waiving absence limits and parent co-pays.
• The National Association for Education of Young Children (NAEYC) and the Early Care and Education Consortium (ECEC) submitted a request to the U.S. congressional leaders for $50 billion in emergency stimulus funding to support the childcare industry.

Sec. 3: Veterans Affairs 

• $6.2 million in Special Emergency Grants
• $6.2 million for Minnesota’s veterans and their families who are facing financial difficulties as a result of the COVID-19 virus. The assistance requires an application and certification of eligibility.
• The grants may be used for emergency financial assistance, hospitalization assistance, medical care or treatment, and other financial issues related to the COVID-19 virus.

Sec. 4: Minnesota Food Shelf Program Funding

SUMMARY: This proposal includes a one-time appropriation of $9 million from the general fund to food shelf programs in response to the COVID19 pandemic. Pursuant to current food shelf statute, funding is administered from DHS to Hunger Solutions, who will distribute to qualifying food shelves.

Grant funds from this appropriation will be used to:

• Support regional food banks to enable specialized responses to community needs.
• Allow food shelves to purchase food, diapers, toilet paper, and other necessary supplies and enable specialized responses to community needs.
• Support a network of transportation organizations to assist in the distribution of food and supplies from food banks and food shelves to persons affected by the COVID19 pandemic.

At least $3 million of this appropriation must be used for regional food banks. This appropriation cancels on June 20, 2021.

BACKGROUND: The Legislature typically appropriates $500K per fiscal year to the food shelf program. Additional funding is needed as food banks, food shelves, and local partners adapt to increased staffing and food transportation needs. This funding will also help them plan for longer-term challenges that COVID-19 presents.

Hunger Solutions is the organization that distributes state funds to food shelves, working with seven regional food banks each distributing commodities to more than 400 food shelves, on-site meal programs and shelters statewide.

Sec. 5: DHS Homelessness and Housing Stability Package

SUMMARY:

• This bill appropriates $5,530,000 to the Housing Support program to increase base room and board rates and base supplemental service rates by 15% for three consecutive months to allow recipients to comply with federal and state safety guidance during the COVID-19 pandemic.
• Appropriates $26,537,000 in one-time funding from the general fund for emergency services grants to be used for COVID-19-related needs. Of this amount:
•      $15.206 million is for providing additional shelter space or purchasing      vouchers for motel/hotel rooms or other housing options for homeless      individuals.
•      $5 million is for purchasing hygiene, sanitation, and cleaning supplies,
•      $6.331 million is for hiring additional staff.

BACKGROUND: Many settings who receive Housing Support payments are already taking out loans to maintain their current capacity as their costs increase related to COVID-19. This funding would allow them to make up for those additional expenses. Organizations who receive emergency services grants are struggling with finding appropriate shelter and isolation space for people experiencing homelessness. They need resources to purchase cleaning and sanitary equipment or add extra staff to accommodate health and safety guidelines.

• Housing Support is a state funded program that provides an income supplement to over 20,000 recipients and 7,000 locations each month. Room and board rates help providers pay for rent, maintenance, and food. Supplemental service rates are used to maintain higher level of staffing for individuals with complex needs. Housing Support is a resource for adults with low incomes who have a disability or are 65 or older and are at risk of institutional placement or homelessness.
• The emergency services grant program provides people experiencing homelessness with essential services and emergency shelter in safe and sanitary facilities.

Sec. 7-9: COVID MINNESOTA FUND

The COVID-19 Minnesota Fund is created with $200 million transferred from the general fund. Money will be disbursed by the MMB to agencies to protect citizens from the outbreak and maintain state government operations during the emergency. The fund expires on May 11, 2020, and any remaining money cancels to the general fund

A commission will be made up of designated legislative leaders. The commission will review any proposed expenditure that exceeds $1 million. The commission has 24 hours to review the request. The commission may make a positive recommendation, negative recommendation, or no recommendation. Only in instances when the commission makes a negative recommendation is the commissioner prohibited from making an expenditure. The commission can make these recommendations during a public meeting remotely and can approve/disapprove an expenditure with or without a public meeting.

A biweekly report is required for expenditures made from the fund to the commission.

Section 10: Tribal Nations Grants
• $11 million in FY 2020 is transferred from the general fund to the Revenue commissioner for grants to the following tribal nations for emergency response activities related to COVID-19:

• Fond du Lac Band, Grand Portage Band, Mille Lacs Band, White Earth Band, Bois Fort Nett Lake Band, Leech Lake Band, Red Lake Nation, Upper Sioux Community, Lower Sioux Community, Shakopee-Mdewakanton Sioux Community, Prairie Island Mdewakanton Dakota Community.

Each tribal nation must use the funding for activities that mitigate the immediate health and economic impacts of COVID-19, including reimbursable activities under the Robert T. Stafford Disaster Relief and Emergency Assistance Act; securing basic needs, including but not limited to food and shelter, for tribal members. Tribes must apply by April 1, 2020, stating the amount of the request, up to a maximum of $1 million, and agree to spend the money as required.

Any portion of the $11 million that is not applied for by April 1, 2020, must be paid in equal share to all tribes that have applied for a grant by the deadline. Grants must be paid out before April 8, 2020, and by April 14, a recipient of a grant under this section must provide a report to the commissioner of revenue in the form prescribed by the commissioner of revenue, who must then compile and provide the report to the chairs and ranking minority members of the legislative committees with jurisdiction over taxes.

Sec. 11: TRANSFERS; SMALL BUSINESS EMERGENCY LOAN PROGRAM

This language provides funding for the Small Business Emergency Loan program that was created in Governor Walz’s Executive Order. Resources are taken from the Minnesota Investment Fund ($10 million) and the Minnesota 21st Century Fund ($20 million) to fund the loan program

Sec. 12: APPROPRIATION; SMALL BUSINESS LOAN GUARANTEE PROGRAM

This language appropriates $10 million to the Small Business Loan Guarantee Program. Details of the program can be found in Article 2.

ARTICLE 2: COVID RESPONSE PROVISIONS

Sec. 1-2: EMERGENCY LOANS FOR FARMERS 

The language makes changes to the Disaster Recovery Loan Program to include contagious animal diseases and covering the loss of revenue when the revenue loss is due to an infectious human disease when a governor has declared a peacetime emergency.

Sec. 3-4: SMALL BUSINESS LOAN

This concept was part of Governor Walz’s proposal to help small businesses impacted by COVID-19 but do not qualify for an SBA disaster assistance loan. The proposal would guarantee 80% of loans up to $200,000. A small business is defined as employing no more than 250 full-time equivalent employees. The loans can be used for machinery or equipment purchases, maintenance, or repair. Additionally, loans can be used for working capital if it is secured by fixed assets when possible.

Sec. 5 – 8: 2019 OPIOID RESPONSE BILL REVISIONS

SUMMARY: This bill makes changes to last year’s opioid response bill (HF 400), which established a registration fee on pharmaceutical manufacturers and distributors to raise funding for an opiate epidemic response account.

• It lowers the application and renewal fees required for compressed gas distributors and clarifies fees for wholesale manufacturers.
• Removes the requirement that schedules II through IV opiate or narcotic pain relievers not be initially dispensed more than 30 days after the first issuance of the prescription and not be refilled more than 30 days after the previous date when the prescription was initially filled or refilled. Federal guidelines will operate in place of this section.

BACKGROUND: This proposal comes from concerns raised by stakeholders from the Board of Pharmacy and legislative opioid workgroups and was worked on during the 2020 legislative session by Representatives Olson and Baker and Senators Rosen and Eaton. Last year, the adopted fee structure for the opioid response bill ended up raising fees across the board for not only opioid manufacturers but also compressed gas distributors, which was not the intention. This bill reduces their application and renewal fees back to $260 for medical gas distributors. While this will lead to reduced funds in the opiate epidemic response account, it’s agreed upon by stakeholders.

This bill also removes a section that prohibited opiate prescriptions from being filled 30 days after they were issued. This caused some unintended consequences, creating concerns among pain specialists and oncologists of unnecessary burden and creating concern from the Board of Pharmacy that patients would be more likely to hoard opiates or narcotics. One example of this is that a person may receive a prescription for an opiate that should be taken on an as-needed basis; if they are issued a new prescription and approach the 30 day limit from when it is valid, they might be inclined to fill this prescription even if they still have a significant amount left of a previous prescription. Also, current statute wouldn’t allow pain specialists or oncologists to write several 30-day prescriptions on the same day, with a note to pharmacists that the second/third prescription shouldn’t be filled until 30/60 days after the first, because any prescription not dispensed after 30 days would be invalid in current statute. For those who require opiates on a longer-term basis, this requires extra work for their provider to reissue these prescriptions. The Board of Pharmacy supports this change and the DHS Opioid Prescribing Work Group continues to work on this issue.

Sec. 9: REAL ID

• Extends the timeline that proof-of-residency documents to obtain a REAL ID are valid from 90 days to 12 months. Two proof-of-residency documents are necessary when applying for a REAL ID-compliant license.
• The language also expands the types of documents that are allowable for proof-of-residency to a debit card, brokerage account, money market statement, cell phone bill, game and fish license, and property tax notice from the prior year (not exclusively a property tax statement for the current year.)
•      Utility bills, bank statements, pay stubs, certified transcripts, insurance      policy statements, income tax returns, UI benefit statements, vehicle      titles, property deeds, etc., already may be used to provide proof-of-         residency.
• The section allows an applicant under the age of 18 to use a parent or guardian’s proof of principal residency documents if the applicant lives at the same residence.
• These changes will provide more flexibility for applicants to provide valid documents that prove an applicants’ residency.
• Note: The federal deadline to obtain a REAL ID will be extended until at least September 2021 from October 2020 due to the pandemic in the forthcoming federal stimulus bill, or CARES Act.
•      As of February, only 35% of licenses nationwide complied with the REAL      ID Act that would have prevented Americans from flying domestically      with noncompliant identification.
•      This will provide Minnesotans with more time to renew their drivers’      licenses or Minnesota ID cards, in addition to an extension of all      expiration dates for cards expiring during the peacetime emergency.

Sec. 10-11: DEPT. OF CORRECTIONS 

Health Care Decisions
The bill includes the authority for the medical director of the Dept. of Corrections to make health care decisions for an individual under conditional medical release who lacks decision- making capacity and who has no health care directive or designated health care agent or that designated agent is unavailable to make a decision.

A conditional medical release is only given when the individual poses no threat to public safety and their condition is better treated in the community.

This authority is already given to the Dept. for individuals that are incarcerated. The bill is meant to be preventative for incarcerated individuals that contract COVID-19 and are placed in a community hospital. Not extending the authority places a burden on the doctors and hospitals in which these individuals are being placed.

Place of Confinement

The bill includes authority for the Dept. of Corrections to place people who are supposed to be sent to state prison to instead sent to a county jail or corrections facility if the time left on the individual’s sentence is less than 90 days. It allows the dept. to work with county jails it has contracts with to place individuals. The dept. has also said it would immediately enter into contracts with county jails that are willing to for this purpose.

This is meant to help contain any potential COVID-19 case outbreaks in prisons as it allows the dept. to keep individuals in county jails that haven’t seen COVID-19 cases.

Due to a backlog in the state’s court systems along with a systemic issue with an inability to make bail, by the time individuals are sentenced and given credit for time served at a county facility they often only have short durations left of their sentence. 500 newly committed individuals were sent to state prisons in 2019 with less than 90 days left of their sentence. Of those 500, 170 had less than 14 days left of their sentence. This does not create a public safety issue – it is meant purely to assist in containing a COVID-19 outbreak in the prison system.

Fingerprinting – SECTION 26, but related to DOC
The provision grants the BCA the ability to allow for exceptions for fingerprint-based state and federal background checks, instead using a name and date of birth background check for essential workers during a peacetime emergency. Fingerprint-based background checks would be required after the fact, once the emergency passes. Fingerprints are required to be submitted no more than 30 days after the end of the emergency. Credentials for individuals who don’t pass the fingerprint-based background check would immediately be revoked. Notice must be given to the legislative chairs with jurisdiction at least 48 hours before using the name and date of birth background checks instead of the fingerprint background check.

A report from the BCA on the use of this exception is due to the legislature by January 31, 2021, and this entire provision sunsets on March 1, 2021.

Fingerprint background checks are becoming more challenging as more locations decline to take fingerprints due to the risks associated with close contact and the COVID-19 virus. Workers who falsify information to pass a background check under this exception would be guilty of a gross misdemeanor, so there is little risk to public safety.

Sec. 12: COMMERCE

The policy language included would allow the Dept. of Commerce to delay or waive deadline for licensees or internal work. If the department waives or delays a deadline, they must use the same standards for similarly situated individuals and companies.

If the department waives a deadline the department must report to the appropriate chairs/leads in the legislature. If the deadline change is healthcare related, the department must report the change to the HHS chairs/leads.

This authority expires 60 days after the emergency declaration expires or is rescinded. The language is agreed upon by the Department of Commerce and the caucus leads.

As an example, there are around 3,000 licensees who need to renew their licenses at the end of March but considering that most continuing education classes are cancelled, which are often a requirement for renewal, they may not be able to meet requirements. The department could use the flexibility given to them to licensees extend their CE requirements until they are able to be fulfilled.

The Department of Commerce is responsible for licensing any number of commercial interests, including banks, credit unions, and other financial industries, the real estate industry, the insurance industry, and others.

Sec. 13: HIGHER EDUCATION 

Summary: 

• Provides temporary emergency powers to the Commissioner of Higher Education to prepare for or respond to a COVID-19 outbreak. The temporary powers allow the Commissioner to waive rules and statutes for the following programs in order to protect the financial stability and academic standing of students:
•      Work Study
•      State Grant
•      SELF Loan programs
•      Other state grant, aid, and scholarship programs under Minnesota      Statutes 136A
• Any action taken under this bill which would result in a fiscal impact must be approved by the Legislature.
• Consultation with the chairs and ranking minority members of the Higher Ed committees is required before any action is taken.
• A report providing a detailed account of actions taken, including a timeline and reasons for the action is required to be submitted to the Legislature with 30 days of the end of their temporary powers.
• The temporary powers are authorized for up to 60 days following the expiration of the declaration of a peacetime public health emergency.
• The temporary powers are authorized following any COVID-19 related peacetime public health emergency that is declared before December 31, 2020. It is also retroactive to cover the Governor’s March 13th declaration.
• This provision gives the OHE commissioner the authority to invoke these measures but does NOT require them to happen.

Sec. 14: DEPT. OF ADMINISTRATION

• This exempts the department of administration from obtaining businesses’ affirmative action plans and issuing equal pay certificates prior to contracting with companies during the peacetime emergency.
•      Currently, for state contracts over $10,000 and businesses with over 40      employees, a certificate of affirmative action compliance must be issued      by Admin for the business to be eligible for a procurement contract.
•      An equal pay certificate is necessary for a contract over $500,000 for      businesses over the same size.
• The commissioner of administration must report by March 2021 on the purchases made using this exemption to the committees with jurisdiction over state government finance.

Sec. 15-16: DRIVERS’ LICENSE, DISABILITY CARD EXTENSIONS, DPS

• Extends the expiration date for valid drivers’ licenses, including instruction permits, provisional licenses, operator permits, limited licenses, and farm work licenses, and any Minnesota identification cards during the peacetime health emergency.
•      The expiration date extension also applies to out-of-state licensees and      disability certificates and permits that were set to expire during the      peacetime emergency.
• An extension is provided for expired licenses/IDs until the end of the  second consecutive month following the month the peacetime emergency terminates.
•      For example, if the peacetime emergency ends any day in May, drivers      with licenses that display expired dates will have until July 31st to renew      their licenses.
• Drivers may continue to operate vehicles with an expired license during the peacetime emergency and the subsequent two months without penalty.
• Nothing in the section prevents suspension, cancellation, revocation, or disqualification of licensure.
• The commissioner of public safety must ensure this change is communicated to law enforcement agencies across the state and must make a reasonable effort to publicize the expiration date extension to the public, including the final date of the extension.
• After the peacetime emergency ends, the commissioner must submit a report to the legislative committees with jurisdiction over transportation regarding any temporary powers exercised relating to driver and vehicle services and the State Patrol.

Sec. 17: FOOD SHELF DISTRIBUTION

SUMMARY: This proposal aligns with the food shelf appropriation in section 4, which allows additional funds to be distributed to the statewide food support network. This section also expands SNAP benefits to include toilet paper and diapers. An allowable use of these funds under this proposal is the purchase, transport and distribution of these supplies.

Sec. 18: PROPERTY TAXES
The deadline to file an appeal of a property assessment is extended from April 30 to May 30 for taxes payable 2020 only.

Sec. 19: USE OF SANITIZERS 
Exempts anyone using a general use sanitizer or disinfectant for hire in response to COVID to be exempt from the commercial applicator license requirements.

Sec. 20-24: CODIFYING UNEMPLOYMENT INSURANCE CHANGES FROM EXECUTIVE ORDER 20-05 

This language puts a portion of Governor Walz’s Executive Order into Session Law. The language would suspend the one-week delay that was previously required to access unemployment insurance funds for the duration of the year. Business owners who have elected UI coverage can access unemployment insurance funds longer than the 5 weeks under current law. Additionally, businesses that had to lay off employees as a result of COVID-19 shall not have those layoffs impact their UI tax rate for the rest of the year.

The proposal also alters what is considered “suitable employment” for the purpose of seeking employment while receiving unemployment benefits. Suitable employment does not include employment that risks the health and safety of a worker as a result of COVID-19 or if it risks of the health of the public. Lastly, a leave of absence qualifies for unemployment insurance if the leave is associated with COVID-19.

SECTION 25: MIF EXEMPTION

This language puts a portion of Governor Walz’s Executive Order in Session Law. This proposal expands on legislation that was passed in the previous session allowing local units of government to keep all of the repayment the earned through the Minnesota Investment Fund. Local units of government can redeploy these resources to help businesses in their community. DEED estimates local units of government will have $28 million at their disposal.

SECTION 26:

See explanation under ‘Dept. of Corrections,’ above