Keywords: 1187, senate, all

Summary: The committee heard presentations from Minnesota State and the University of Minnesota focused on asset preservation and HEAPR/capital renewal needs. Minnesota State described its statutory HEAPR framework, which covers code compliance, accessibility, hazardous materials, energy efficiency, and repairs to keep campuses “warm, safe, dry, and current.” Officials said the system’s academic facilities span 37 colleges and universities on 54 campuses, with about 22.5 million square feet of space, and reported a preservation backlog that has grown to nearly $1.2 billion, with another estimated $1.3 billion in needs over the next 10 years. They said HVAC and air-handling systems are now among the most urgent priorities, and urged strong, recurring, predictable HEAPR funding. Members raised concerns about declining enrollment, workforce demand, hybrid/online learning, and how those trends should affect future capital planning; Minnesota State said its board had just set 2024 guidelines emphasizing smaller, tactical projects tied to individual programs, not broad new construction, and that workforce demand and enrollment trends are being built into project scoring. The University of Minnesota said its top capital priority is capital renewal and that its 10-year renewal need exceeds $5 billion. Officials cited major systemwide needs including roofs, windows, elevators, accessibility projects, asbestos abatement, and fire safety upgrades, and said the university is requesting $400 million in HEAPR funding. They explained that HEAPR allocations are distributed by a formula based on campus space and condition, then refined through a facility condition assessment process that weighs criticality, risk, health and safety, regulatory requirements, and program impact. The university said its 2022 HEAPR request would fund 240 projects across more than 145 building systems, and that it can manage large appropriations efficiently, with more than 90 percent of prior appropriations spent, encumbered, or obligated within two years. Committee members generally supported the emphasis on preservation and asked about how enrollment declines, workforce needs, online learning, and space consolidation should affect future investments. Minnesota State said it is adjusting to lower enrollment and more hybrid learning by focusing on existing buildings and program-specific needs, while the University of Minnesota said consolidation and flexible space planning are part of every project and that it is actively planning to reduce investment in buildings not worth further reinvestment. Members also noted the statewide benefits of these projects for small businesses and minority contractors. No votes or formal actions were taken in the portion provided.

Keywords: 1187, senate, all

Summary: The committee began with a briefing from Mr. Sylvia on tax increment financing (TIF), explaining how TIF works, the but-for test, the main district types, and common special-law requests such as blight-test exemptions, five-year rule extensions, duration extensions, and pooling changes. He also noted that TIF is a local tool with no impact on state funds and that the state auditor oversees reporting. After the overview, the chair laid all bills over for possible inclusion. Senate File 3160, by Senator Nelson, proposed a city-specific TIF exception for Chatfield to help finance a multi-level hotel. Testifiers said the project would support tourism and local economic development, but current law’s 15,000-square-foot limit for small-city commercial TIF would block the project because only the first floor would be under that threshold. The bill would limit the square-footage test to the first floor for this project only. Members asked about the city’s lodging needs and broader development plans, and the bill was laid over for possible inclusion. Senate File 3159 was then presented as a general-law change to address the same issue more broadly by redefining the square-footage limitation to apply to the main floor for certain small-city projects. Staff explained that this would provide flexibility for tourism and other facilities where the public may not enter on the same level, and that if SF 3159 were adopted, SF 3160 would be unnecessary. The bill was also laid over for possible inclusion. Senate File 3498, by Senator Pratt, sought authority for Shakopee to use TIF to reclaim and fill a large former gravel pit site for future development. City officials said the 150-acre site contains an 80-foot hole, with fill costs estimated at $8 million to $12 million and potential redevelopment of $200 million to $300 million. Questions focused on what material would be used to fill the pit and why the bill increased pooling authority to 80 percent; staff said the proposal was modeled on prior legislation for other cities and that the higher pooling level reflected the scale of the project. The bill was laid over for possible inclusion. Finally, Senate File 2976 from Woodbury proposed extending an existing affordable-housing TIF district by five years and allowing surplus increment to be used for Central Park maintenance and infrastructure improvements. Testifiers said the district, created in 2001, supports a skyway connection between a senior housing facility and Central Park, and that the extension would provide about $2 million more for the project. Members discussed the importance of Central Park as a community asset, and staff noted that any duration extension would require approval from the city, county, and school district. The bill was laid over for possible inclusion.

Keywords: 1183, house

Summary: The committee took up House File 4306, the omnibus pension bill, with Chair Murphy presenting it as a vehicle to address public pension funding and retiree benefits. Murphy explained that the bill was revised through a DE-3 amendment and a technical A2 amendment, with help from House Research, fiscal staff, and LCPR staff. He said the bill reflects a shift from an original billion-dollar proposal to a narrower package focused on pension system changes, direct state aid, and a one-time COLA increase, while also lowering the assumed rate of return from 7.5 percent to 7 percent to better match current actuarial expectations. He argued the bill responds to the need for more realistic funding assumptions and continued support for retirees and current public employees. Members discussed the relationship between the bill and prior pension reforms, especially the 2018 changes that aimed to restore full funding. Representative Albright asked whether the proposal aligned with Senate efforts and whether it would enhance or distract from the 2018 work; Murphy said it would enhance that work by addressing immediate needs while preserving the broader funding approach. Representative Nelson added that lowering the assumed rate of return does not change actual fund performance, but gives a more realistic forecast and may reduce the need for future general fund infusions. Murphy also noted the bill has a Senate companion authored by Senator Franzen. The committee adopted the A2 amendment to the DE-3 and then adopted the DE-3 as amended. After questions and discussion, the committee temporarily laid over House File 4306, as amended, for further consideration.

Keywords: 1183, house

Summary: The committee took up House File 4324, the supplemental veterans and military affairs omnibus bill. An A5 author’s amendment was adopted first; it made technical corrections, including clarifying a Veterans Park septic-system provision in Washington County and specifying that one appropriation was one-time. After the amendment passed, Chair Ecklund presented the bill as a package of veterans and military affairs initiatives focused on veterans homelessness, veteran suicide prevention, bonus pay, National Guard support, and related services. Ecklund said the bill would invest more than $10 million to address veterans homelessness through temporary supportive housing, permanent housing, and landlord/support-service coordination, and would also fund early intervention and education efforts to reduce veteran suicide. Other provisions described included about $25 million for post-9/11 veteran bonus pay, $7 million for National Guard enlistment and reenlistment bonuses, nearly $1 million for Meals on Wheels support that includes veterans, increased county veterans service officer and veterans service organization grants totaling $1.8 million, operating funds for the new Redwood Falls State Veterans Cemetery, funding for a Fisher House near the Fargo VA Medical Center, a grant related to the USS Minneapolis-St. Paul commissioning, and a holistic health and fitness program for the Minnesota National Guard. Representative Garoppolo asked why the post-9/11 bonus amount was lower than the governor’s $40 million recommendation. Ecklund replied that the House estimate was based on past bonus programs, where roughly 60% of eligible veterans applied, so the bill assumed a similar take rate and did not change eligibility. Garoppolo also thanked the author for incorporating an amendment and for support related to the USS Minneapolis-St. Paul commissioning. The bill was then laid over as amended, with no final vote on passage taken in the transcript.

Keywords: 1187, senate, all

Summary: The Senate Environment and Natural Resources Finance Committee reconsidered Senate File 4043, an LCCMR-related spending bill, and first took up a motion to restore the bill to the posture of being recommended to pass and referred to Finance. Sen. Torres Ray then offered the A3 delete-all amendment, which would fund all LCCMR projects scoring 70 or above, plus several additional projects focused on pollinators and deer health, while leaving about $22.22 million on the bottom line and providing no money for the Emerging Issues Account. Staff explained that the amendment would not include projects added in the Westrom version and that a black bear project had been withdrawn. Members debated the amendment and the broader process for selecting projects, with supporters arguing for stronger adherence to the LCCMR scoring process and critics saying the bill should continue to include a broader range of projects from across the state. Sen. Dibble and Sen. Torres Ray criticized the use of trust fund dollars for projects they said should be funded elsewhere and objected to bypassing the commission’s process. Sen. Westrom defended the committee’s authority to make changes and argued the bill should keep moving forward with projects that would otherwise be left out. The A3 amendment failed on a 4-4 tie. After further discussion, the committee voted on Senate File 4043 as amended. The bill passed the committee on a 5-3 vote and was referred to the Committee on Finance.

Keywords: 1183, house

Keywords: 1187, senate, all

Summary: The committee heard Senate File 4198, the HHS omnibus finance and policy bill, from Senator Utke. He described it as containing forecast adjustments and committee priorities, including interstate licensure compacts for nurses, counselors, and speech-language pathologists; streamlined fingerprinting and temporary licensing permits; changes related to groundwater thermal exchange devices; hot tub notice exemptions for certain rental properties; bed-use flexibility for critical access hospitals; an exemption for Children’s Hospital in St. Paul to add pediatric inpatient behavioral health beds; temporary EMS staffing/operational changes; dental utilization reporting; pharmacist and pharmacy technician scope-of-practice changes; reduced fees for medical gas wholesalers/manufacturers; and expanded financing authority for health care organizations through the Minnesota Higher Education Facilities Authority. Staff estimated the bill’s fiscal impact at about $1.5 million, and the committee also discussed combining this bill with Senator Abeler’s HHS policy bill for floor action. A major portion of the meeting focused on the A29 amendment, which addressed the intractable pain language tied to the opioid-related provisions. Supporters, including Senator Claussen and others, argued the amendment was needed to protect physicians, advanced practice nurses, and physician assistants who prescribe above CDC morphine milligram equivalent thresholds in good faith for patients with intractable pain, and to prevent inappropriate investigations or penalties that could lead to tapering or dropping patients. Opponents, including Senator Johnson, raised concerns that the language could create liability gaps, be used in bad faith, or open the door to unsafe prescribing and even assisted suicide concerns. Several members also objected that the language had not been vetted by the Civil Law and Data Practices Committee and that the Finance Committee was not the right forum for the policy change. After debate, Senator Marty’s motion to delete lines from the A29 amendment failed, and the committee then adopted the A29 amendment. The transcript indicates the committee intended to move the bills forward together, with the omnibus HHS bill and the policy bill combined and sent to the floor.

Keywords: 1183, house

Summary: The committee took up adoption of the House budget resolution, Bud Res 04, and Chair Moran moved the resolution. Staff then walked members through the one-page budget targets document for the general fund for fiscal years 2022-23, explaining that the resolution reflects committee targets and does not include the fiscal years 2024-25 tails. The targets discussed included, among others, agriculture ($60 million), capital investment ($200 million), climate and energy ($80 million), early childhood ($250 million combined), education ($1.155 billion), health and human services ($700 million, including a $150 million homelessness subtarget), housing ($230 million), public safety ($200 million), state government ($476.5 million, including $400 million for pensions), tax aids and credits (just under $1.65 billion), transportation ($225 million), and workforce and business development ($175 million). Staff also noted a total net spending change of $7.364 billion and explained the surplus calculation, saying the current biennium surplus is about $9.3 billion and that the resolution would leave about $1.88 billion remaining after the proposed changes. Members asked several questions about education funding, especially whether the resolution fully funds education and why no money goes directly to the formula. Chair Moran and staff said the budget moves Minnesota closer to education priorities but does not fully fund special education cross-subsidy costs; staff estimated the state is moving from covering about 6 percent to about 55 percent of that gap, with roughly $800 million still needed to fully cover it and about $422 million added in the proposal. Members also raised concerns that the education bill adds mandates for school districts. Chair Moran responded that education has been underfunded and that the budget is intended to address major needs, including behavioral and mental health supports, while acknowledging more work remains. Other questions focused on capital investment and the forecast. Staff said the $200 million capital investment target would support a $2.05 billion bonding bill, with about $180 million in cash projects available in fiscal year 2023. A member asked about the February forecast in light of the Ukraine war and inflation; staff said the forecast was prepared before the invasion, though economists build in uncertainty, and noted the forecasted surplus for the tails is just over $6 billion. Chair Moran said leadership considered broader economic conditions and wanted to preserve a cushion of nearly $2 billion. Members expressed differing views, with supporters emphasizing the need to address long-standing shortfalls and critics arguing the resolution spends too aggressively and leaves too little margin if inflation or other disruptions worsen.

Keywords: 1183, house

Summary: The conference committee met remotely on April 19 to reconcile House File 3420, a drought assistance and recovery bill. Members and staff reviewed the House and Senate proposals, which both provide drought relief for farmers but differ on how funds are allocated and who is eligible. The House proposal included $5.1 million for livestock and specialty crop producer grants, $5 million for Rural Finance Authority disaster recovery loans, and additional DNR-related appropriations for well interference, water efficiency, tree replacement, and drought-killed seedlings. The Senate proposal included $7 million for producer grants, $1.5 million for the Rural Finance Authority, $1 million for veterinary diagnostic lab equipment, and $500,000 for the Agriculture Emergency Account. Staff also noted the House language changes eligibility for RFA loans from 50 percent to 20 percent of prior-year farm income, while the Senate had no comparable change. A detailed comparison of the producer grant provisions highlighted several differences: the House used a D4/D3/D2 priority system, allowed administrative costs, required outreach to emerging farmers, and set a $10,000 maximum grant per farmer; the Senate used a first-come, first-served system, did not include administrative costs, had reporting requirements, and capped grants at $5,000. The two versions also differed on how feed transportation costs would be reimbursed and on the geographic eligibility rules. Department staff explained that, absent further direction, grants would likely be paid to principal farm operators using USDA farmer definitions and limited to one payment per farm. Deputy Commissioner Andrea Vowell of the Department of Agriculture said the department preferred the House language on administrative costs, the larger Rural Finance Authority appropriation, and the broader flexibility for specialty crop and livestock producers, while also supporting the Senate investments in the veterinary diagnostic lab and emergency account. She proposed a possible compromise on RFA eligibility that would include contiguous counties designated as primary natural disaster areas. DNR Commissioner Sarah Strauman said the department supported the House’s natural resources appropriations and emphasized the drought’s impacts on water and trees. Members asked questions about how losses would be documented, how eligibility would be determined, and whether the USDA disaster-area map was available; staff said payments would be based on actual expenses and that the department would treat grants as going to principal operators, one per farm. No final vote or agreement was taken at this meeting.

Keywords: 1183, house

Summary: The meeting was a walk-through of differences between House and Senate versions of a drought-relief agriculture bill, with nonpartisan fiscal and research staff explaining the funding and policy provisions. House staff outlined House File 3420’s appropriations for the Minnesota Department of Agriculture and the Department of Natural Resources, including livestock and specialty crop producer grants, livestock feed transportation, Rural Finance Authority support, well interference response, water efficiency grants, tree replacement, and drought-killed seedling replacement. Senate staff then described the Senate proposal, which also funds drought-related agriculture aid, veterinary diagnostic laboratory equipment, and the agriculture emergency fund, but with different allocations and no tail appropriations in either version. Staff then compared the House and Senate drought-relief grant structures in detail. The House proposal sets aside separate amounts for livestock farmers, specialty crop producers, and farmers market vendors, allows reallocation among funding buckets, caps grants at $10,000 per farmer, and reimburses livestock feed transport at up to $6 per loaded mile for hay or forage hauled up to 25 miles. The Senate proposal uses a single $7 million pool with $5.5 million for livestock producers and $1.5 million for either livestock or specialty crop producers, caps grants at $5,000, ties eligibility to counties designated as primary natural disaster areas, and reimburses feed transport at $6.60 per mile only when costs are not covered by USDA assistance. The Senate also included reporting requirements and a first-come, first-served process. Counsel also noted policy differences in the Rural Finance Authority disaster recovery loan provisions. The House language would permanently change eligibility from a three-year, 50 percent farming-income test to a one-year, 20 percent test, and it included a statutory change that was also in the governor’s supplemental proposal. The House version also provided outreach for emerging farmers and administrative funding, while the Senate version did not. No votes or final actions were taken in the portion provided; the discussion was informational and focused on comparing the two chambers’ language and funding levels.

Keywords: 1183, house

Summary: The committee took up House File 3438, the legacy finance omnibus bill, and Chair Lilly moved that it be recommended for placement on the General Register. Lilly described the bill as funding Minnesota’s legacy accounts, including the Lessard-Sams Outdoor Heritage Council, clean water, parks and trails, and arts and cultural heritage. He said the bill directs about $159 million through the Lessard-Sams portion to 49 programs and 29 organizations, and noted added funding for clean water work addressing PFAS and lead, along with some minor extensions and a change making Clean Water Council members voting members. During questions, Representative Garofalo asked about the basis for the clean water recommendations, noting the Clean Water Council is usually advisory and that this is the second year of the biennium. Lilly responded that the bill uses available money while leaving a robust reserve and aims to address current issues such as lead service lines. Representative Miller said he would vote no because of the clean water approach and what he viewed as unnecessary spending. Representative Johnson also opposed the bill, arguing that land acquisition should stop and citing the bill’s inclusion of about 41 square miles of acreage purchases and easements. Representative Becker-Finn said she would save comments for the floor. No amendments were prefiled. The committee then voted on the motion to recommend the bill for the General Register. The motion prevailed on a 17-10 vote, and House File 3438 was recommended as is for the floor.

Keywords: 1183, house

Summary: The House met in session with prayer, the Pledge of Allegiance, and a quorum call. The journal from the previous day was approved as corrected, and reports from standing committees and divisions were adopted without objection. The chief clerk also reported the first reading of House Files 4792 through 4796. A Rules and Legislative Administration report designated House File 961 and another bill for placement on the calendar for Thursday, April 21, 2022, and required pre-filing of amendments for those bills. Non-controversial motions and resolutions were taken up and prevailed without objection. During announcements, Representative Winkler outlined the schedule: the House would reconvene at 11 a.m. on Thursday, recess for Rules Committee and caucus, then return to pass two bills. He also said the House would begin work on supplemental budget bills the following Monday. The House then adopted motions to adjourn until 11 a.m. Thursday, April 21, 2022, and adjourned.

Keywords: 1187, senate, all

Summary: The Senate Transportation Finance and Policy Committee met on April 19, 2022, and heard a series of local transportation project requests, with the chair emphasizing that each testifier had four minutes because of the large number of projects on the agenda. The first bills focused on Highway 74 in Winona County (SF 3844), where Senator Miller and county officials asked for a one-time appropriation to restore an auto seal surface on 3.9 miles of the road. Testimony said the surface had performed well for years, would be cheaper over its life cycle than repeated gravel maintenance, and would improve winter safety, reduce dust, and address a local petition and county resolution supporting the project. The committee also heard SF 668 for Madison Lake, seeking $510,000 for water, sewer, and lighting work tied to MnDOT’s Highway 60 project; the city said the highway is central to the community, but lighting and utility upgrades created funding gaps the city could not easily absorb. The committee then heard several Highway 23-related proposals. Senator Weber presented SF 3684 for a concrete reconstruction of Highway 23 between Pipestone and Russell, with a county commissioner arguing that the route carries heavy agricultural and freight traffic and that repeated asphalt overlays deteriorate too quickly to justify short-term fixes. Senator Lang presented SF 4136 to address a dangerous at-grade intersection at Highway 9 and Highway 23 near New London High School, where he said multiple deaths had occurred and local stakeholders had worked with MnDOT on an underpass solution. Senator Limmer presented SF 3900, seeking $22 million for remaining Highway 610 work in Maple Grove; he and the mayor said the project is shovel-ready, supports major traffic volumes and regional connections, and would improve safety, economic development, and access to the Maple Grove Hospital. Later, Senator Johnson presented SF 3319 for $13.39 million in flood mitigation and bridge work in the Oslo area, with testimony describing a critical Red River crossing, spring flooding detours, fracture-critical structures, load limits, and the need to rebuild rather than merely rehabilitate the bridge. Senator Rarick then introduced SF 3050 for Highway 73 in Carlton County, where multiple testifiers described decades of delay, narrow and dangerous road conditions, blind intersections, steep grades, and repeated accidents; they urged a full reconstruction rather than continued band-aid repairs. The final portion of the transcript began discussion of SF 1366, a U.S. Highway 169/County Road 4 interchange project, with Senator Benson noting significant traffic delays, development obstacles, and crash rates well above average, but the transcript cuts off before the full testimony or any committee action on that bill.

Keywords: 1183, house

Summary: The committee discussed a housing finance bill that would be folded, along with two other bills, into an omnibus package to align with the Senate for conference committee. Representative Houseman gave a broad overview of the bill’s goals: investing across the housing continuum, increasing affordable housing supply, reducing renter costs, expanding homeownership, preserving existing affordable homes, and supporting emergency shelter and services. He highlighted major funding items including $400 million for housing infrastructure bonds, $100 million for naturally occurring affordable housing, and $50 million for down payment assistance for first-generation homebuyers, and noted that some policy provisions in the bill would update Minnesota Housing Finance Agency law and landlord-tenant law. Representative Howard added projected impacts, saying the investments would create 2,667 housing units, help 1,667 new homebuyers, save over 4,000 affordable homes, and benefit more than 20,000 renters. A significant portion of the discussion focused on process and legislative centralization. Representative Houseman and others argued that combining bills into larger packages can make conference committees less transparent and reduce member involvement, while Representative Rafael said the trend toward fewer, larger bills has eroded legislative function and transparency over decades. He also noted that the bill represented a substantial increase in spending, and fiscal staff confirmed the net spending increase for Minnesota Housing Finance was $355 million in fiscal year 2022-23, about 183 percent above the February forecast base. The committee then considered Representative Garofalo’s A13 amendment, which would retroactively repeal Saint Paul’s rent control ordinance. Garofalo argued the ordinance had frozen thousands of units, reduced building permits, and harmed housing investment and affordability. Opponents responded that the amendment would overturn a local election result and intrude on local control, and several members said residents’ votes should be respected even if the policy proves unwise. The chair indicated the amendment would be voted on, but the transcript excerpt ends before the vote or final action on the amendment is shown.

Keywords: 1187, senate, all

Summary: The Senate opened with a prayer and Pledge of Allegiance, then confirmed a quorum and proceeded through the day’s orders of business. The chamber adopted the printed committee reports, gave second readings to Senate Files 4025 and 4091 and House File 2746, and handled introduction and first reading of additional bills, including referral of Senate File 4508 to the Committee on State Government Finance and Policy. Under motions to re-refer bills, Senator Nelson explained that his bill would rename the Minnesota Higher Education Facilities Authority board as the Health Education Facilities Authority Board and expand the board by one member; he said there was no known opposition and support from the Hospitals Association and the HEFA board. The motion to send SF 980 to State Government Finance and Policy was debated and then failed on a division vote, so the bill was not re-referred. Senator Utke then moved SF 3636 from Finance to State Government Finance and Policy and Elections, and that motion prevailed. The Senate also referred resolutions 20123 through 20125 to the Committee on Rules and Administration. During announcements, Senators Ruud and Herr promoted a Ducks Unlimited Capital Chapter event at the Wabasha Street Caves. The Senate then adopted a motion to adjourn until Thursday, April 21 at 11 a.m.