Keywords: 1183, house

Summary: The House Taxes Committee met remotely on March 8, 2022, with a quorum present and approved the March 3 minutes. Chair members then took up the state tax expenditure budget, noting that tax expenditures are often overlooked compared with direct spending and that the committee had recently created a Tax Expenditure Review Commission. Eric Willett, Director of Tax Research at the Department of Revenue, presented a high-level overview of the biennial tax expenditure budget, which catalogs more than 300 tax expenditures across 15 tax types and has been produced since 1985. Willett explained how the report defines a tax expenditure, how it differs from direct spending, and how the report uses a reference tax base to identify special exclusions, deductions, and credits. He emphasized that the report is descriptive rather than a policy recommendation, and cautioned that repeal of some provisions could create administrative or compliance problems, that some tax expenditures interact with one another, and that the report’s estimates are not the same as bill-by-bill revenue estimates. He used examples such as the mortgage interest deduction, itemized deductions, and federal conformity items to illustrate these points. The presentation also reviewed the largest categories of tax expenditures in the individual income tax, corporate tax, sales tax, and property tax. Willett said the federal Tax Cuts and Jobs Act and Minnesota’s response significantly reduced itemization, and he noted that the sales tax base is especially narrow because many services are untaxed. For property taxes, he explained that exemptions and classification changes shift taxes among taxpayers rather than simply reducing revenue. The committee also discussed the new law changing the reporting schedule and the forthcoming work of the Tax Expenditure Review Commission, but no votes were taken beyond approval of the prior minutes.

Keywords: 1187, senate, all

Summary: The committee heard testimony on proposed changes to Minnesota’s competency restoration and provisional discharge practices, centered on Senate File 3728 and related bills. The chair framed the hearing around a tragic case involving Abigail Simpson, whose mother, Michelle Simpson, testified about her daughter’s murder by a person who had been found incompetent, civilly committed, and later released to the community. The chair said the goal was to begin a Senate process to prevent similar tragedies and to consider how competency restoration should work, including whether community-based restoration is appropriate for higher-risk individuals. Michelle Simpson described the competency restoration process as involving medication, abstinence from alcohol and drugs, and education about court proceedings and working with counsel. She argued that community restoration should be limited to low-risk individuals, that 60 to 90 days is often too short to restore competency, and that a risk assessment tool such as the Public Safety Assessment should be required to help determine whether a person should be treated in a hospital, jail, or community setting. She also said the bills were unclear about the roles of forensic navigators versus county case managers, the handling of provisional discharge, and the need to separate evaluators from treatment providers to avoid conflicts of interest. Dr. Kylian Stevens of Direct Care and Treatment gave DHS’s perspective, explaining that competency restoration has two parts: mental health treatment and education, and that incompetency is not the same as dangerousness. He said DHS changed its practice in 2018 so that competency to stand trial would no longer determine provisional discharge, because keeping psychiatrically stable patients in state facilities while waiting for competency restoration limited access to beds for others in need. He said patients are now provisionally discharged once stable, with county case managers arranging placements and ongoing services, and that DHS does not discharge psychiatrically unstable patients. Julie Ellis of Stearns County Human Services then began describing the county role in provisional discharge, saying counties, DHS staff, and providers develop the plan, with DHS approving community placements from DHS facilities; the chair indicated the committee would continue with additional testimony and discussion of the bills.

Keywords: 1187, senate, all

Summary: The committee heard Senate File 182, authored by Sen. Rarick, which seeks to remove names from DHS records tied to a prior 2014 MNSure/Medicaid estate-recovery issue. Rarick and supporters said the legislature had already forgiven the liens in 2017, but the underlying data still remains in DHS systems, leaving affected Minnesotans worried that a future law could revive the claims. Testifiers Rick Rayburn and Scott Kilrud described the affected group as older Minnesotans who enrolled through MNSure in good faith and later learned their estates could be subject to recovery; they argued the bill would protect them by deleting identifying information. Committee members pressed DHS on whether the bill could be implemented and whether it would violate federal law. DHS witnesses said the agency must comply with federal data-retention and Medicaid-record requirements, cited 45 CFR 155.1210, 42 CFR 431.17, and 42 U.S.C. 1396p, and said deleting identifying data would likely put the state out of compliance. DHS also said the retained information is historical claims and eligibility data, not records of recoverable estates, and that no current estate recovery is anticipated for these individuals because state law already bars it. Sen. Latz and others questioned whether the bill addressed a practical problem or only a hypothetical future change in law, while Sen. Westrom asked for more specific legal citations and whether the names could be separated from the data. Rarick said he was open to an amendment requiring DHS to report back after completing the work and to clarifying a time-specific retention period, but no amendment was adopted during the meeting. DHS said it would follow up with additional information, including the cited legal language and the prior fiscal note. The bill was discussed only; no final vote or committee action was taken in the portion of the meeting provided.

Keywords: 1187, senate, all

Summary: The committee first heard Senate File 3508, which would appropriate about $2.29 million from the renewable development account for the Granite Falls municipal hydroelectric facility. Senator Gary James and city administrator Crystal Johnson explained that the project uncovered additional concrete and infrastructure problems during construction, and that $490,000 of the request would cover a funding gap for replacing turbine number three after bids came in higher because of COVID-related labor and material costs. Members asked for clarification on whether the money was for repairs or a new turbine, how the city’s own utility operates, and what the project would produce; Johnson said the work would double the city’s hydro capacity to about 1.5 megawatts and help offset tax-base losses from the decommissioning of the former Xcel plant. The committee set the bill aside for possible inclusion in the omnibus bill. The committee then took up Senate File 2947, a bill by Senator Frentz to give residential utility customers a direct path to the Public Utilities Commission after an unfavorable administrative decision. An A1 amendment was adopted, and Commissioner Joe Sullivan said the commission had not taken a formal position but supported the general direction of the bill. He explained that the current process allows only limited formal complaints and that the bill would add an appeal route for residential customers, while still using the Consumer Affairs Office’s informal complaint process first. Ron Elwood of Legal Aid testified in support, saying the measure was narrowly tailored to disputes involving service terms, billing conditions, and alleged violations of statutes, rules, or tariffs, and that it had been vetted with utilities and stakeholders. Several senators raised concerns about possible frivolous complaints, added workload, and whether the bill would require rulemaking or additional staff. Sullivan and Elwood responded that the bill includes filters to screen out meritless cases, that the commission already has authority to dismiss matters quickly, and that the measure is intended to cover a limited set of residential service disputes that currently lack a full appeal path. Sullivan said a fiscal note was being prepared and that the commission expected some additional work, possibly including at least one new FTE and technology support. The committee did not take final action on the bill and instead laid it over, with a request that a question about rulemaking be answered later for the committee.

Keywords: 1187, senate, all

Summary: The committee met on March 8, 2022, with a quorum present and first heard Senate File 197, as amended, on lawful gambling organization audits. Senator Bruce Anderson explained the bill would modify annual report and audit requirements for lawful gambling organizations, especially veterans and other nonprofit groups, and said he brought it in response to concerns from local organizations about audit practices. Supporters, including Rachel Jenner of Allied Charities, argued that because about 85% of gambling receipts are paid out as prizes, the current $750,000 gross-receipts threshold is too burdensome and that changing the definition to revenue after prizes would reduce audits for roughly 655 organizations and save money for charitable missions. Opponents, including Gino Fragnito of the Minnesota Society of CPAs, said audits uncover theft, payroll fraud, missing deposits, and other internal-control problems, and warned that the proposed definition change would effectively raise the sales level needed to trigger an audit to about $5 million. After discussion, the committee adopted the A2 amendment and laid SF 197 over for possible inclusion. The committee then took up Senate File 2862 on electronic pull-tab devices, games, and systems. Senator Karin Housley said the bill would prevent the Gambling Control Board from deactivating or prohibiting approved e-pull-tab products or applying later-adopted rules to them unless the Legislature specifically authorizes that change, arguing this protects charities, bars, restaurants, veterans groups, youth sports, and other beneficiaries from sudden regulatory changes. Testifiers in support included Laura Wade of the Gambling Control Board, who said the board is generally neutral but cautioned that the bill would diminish the board’s rulemaking authority and that the agency prefers legislative clarification rather than restrictions on future rule changes. Support also came from Robert Hart of the American Legion, Tracy Wiggin of a cheerleading booster club, Ray Bone of the Electronic Gaming Group, and Tony Chessuk of the Minnesota Licensed Beverage Association, all of whom said e-tabs are important revenue sources for local charities and hospitality businesses and that the bill would provide needed stability after last session’s disputes over possible deactivation. The hearing remained open with additional testimony underway; no final vote on SF 2862 was taken in the portion provided.

Keywords: 1187, senate, all

Summary: The Senate Environmental and Natural Resource Finance Committee met on March 8, 2022, and announced it would lay over all three bills heard that day: Senate File 3044 and Senate File 3113 by Senator Weber, and a third bill by Senator Howe. SF 3044 would fund a statewide water storage and retention effort aimed at reducing flood peaks, improving groundwater recharge, and supporting water quality in rural and urban areas. Senator Weber, Scott Sparlin of the Minnesota River Congress, Robert Sepp of the Red River Watershed Management Board, and Jim Stark of the Legislative Subcommittee on Water Policy all testified in support, emphasizing increasing storm intensity, erosion and sediment problems, infrastructure protection, and the need for consistent funding and a comprehensive approach to water storage. Committee members discussed regional examples, possible restoration projects, and the bill’s relationship to other funding sources. The committee noted a fiscal note was still pending and that the bill’s appropriation and planning components would need to be sorted out later. The committee then heard SF 3113, which would create and maintain a database for aquifer test data so future groundwater projects would not have to repeat expensive and water-intensive testing. Senator Weber said the bill would preserve information from pump tests and support future well and irrigation projects. Dr. Kerry Jennings of Freshwater explained that aquifer tests can last weeks and discharge significant amounts of water, so repeating them is wasteful; she said the database would help hydrologists, consultants, and cities access existing reports and data. She also said the request should be increased to match the fiscal note, which she described as covering hydrologist staff, database refinements, and a web interface. DNR section manager Jason Meckel testified that the agency supports the effort, has been working on the project interagency, and would use the funding to speed up data entry, improve access, and avoid losing records in paper files. The committee asked about how the data are currently stored and was told that some permit and well log information exists in agency systems but is not fully searchable in a public database. The committee again laid the bill over for possible inclusion.

Keywords: 1183, house

Summary: The committee heard House File 4026, a proposal by Representative Long addressing PTSD among public safety employees, and the chair announced the bill would be laid over for further work while still moving it forward. Long described the bill as a response to a growing PTSD crisis, saying it would require employer wellness or peer-support programs, direct the POST Board to create PTSD-related training, reimburse local governments for continued health insurance costs tied to disability benefits, and require 32 weeks of treatment before an employee could pursue duty disability. He said the goal was to prioritize treatment and return-to-work options, and he cited rising PERA duty disability applications, most of which were for PTSD. Representatives of the League of Minnesota Cities, the City of Nisswa, and the Minnesota Chiefs of Police and Sheriffs’ associations testified in support, emphasizing the human cost to first responders, the financial strain on local governments, and the need for state-level action and prevention resources. Opposition testimony came from the Minnesota Association for Justice, which argued the bill would not improve access to treatment and would instead make it harder for injured workers to obtain benefits. Joel Carlson and Lindsey Rowland said PTSD workers’ compensation claims are often denied and that the 2019 PTSD presumption has not solved the problem; they urged caution and opposed the bill as drafted. Chris Stewart, a retired Minneapolis police sergeant and founder of Heroes Helping Heroes, gave emotional testimony about his own PTSD, arguing the bill would force officers to choose between treatment and income, delay PERA duty disability, and expose them to financial hardship and job-related risks. Edward Ray of Teamsters Local 320 also opposed the bill, saying the proposal had not gone through the usual Workers’ Comp Advisory Council vetting process and would improperly insert mandates into the doctor-worker treatment relationship. No vote was taken; the bill was laid over for continued discussion and possible amendment.

Keywords: 1187, senate, all

Summary: The Local Government Policy Committee met on March 8, 2022, and heard Senate File 3457, as amended by the A1 technical amendment. The bill, authored by Senator Jasinski, updates Minnesota’s qualified newspaper and public notice laws to reflect current publishing practices, including e-editions. Testimony from Patrick Hines of Messerli Kramer on behalf of the Minnesota Newspaper Association said the bill was developed with input from local government and education stakeholders and was intended to modernize outdated statutes, clarify what counts as publication, define e-editions as digital facsimiles of print editions, and adjust circulation rules so newspapers that have merged or changed offices can still qualify for public notices. Members asked about how qualified newspapers are designated when multiple papers exist in a county, whether e-editions could replace print notices, and whether the bill would increase costs. Hines explained that the existing priority process for choosing a qualified newspaper would remain unchanged, that public notices would still need to be published in the newspaper’s print edition or e-edition rather than just on a website, and that the bill was intended to be cost-neutral to local governments. He also noted that the bill requires public notices on newspaper websites to be placed in front of any paywall and raises a statutory threshold for publishing certain individual disbursements from $300 to $500, which he said would reduce some required notices. Several senators spoke in support of the bill, emphasizing the importance of local newspapers for transparency and public access, especially in rural areas. Senator Jasinski said the bill was part of a broader effort to adapt public notice requirements to technology while preserving access for residents who still rely on print newspapers. The committee adopted the A1 amendment and then approved a motion to recommend Senate File 3457 as amended and send it to General Orders.

Keywords: 1187, senate, all

Summary: The Housing Finance and Policy Committee heard Senate File 3677, a $200 million homeownership package described by the author as a one-time investment originally drafted around ARP funds. The bill would create a Homeownership Investment Grant Program, fund workforce and affordable homeownership development, provide first-time homebuyer down payment assistance through local groups, and set aside money for manufactured home park residents to purchase the parks they live in. Testifiers from the Homeownership Minnesota Coalition, Habitat for Humanity of Minnesota, and Project for Pride in Living supported the bill, emphasizing the severe shortage of affordable ownership inventory, the need to address racial homeownership disparities, and the role of CDFIs and nonprofit developers in quickly deploying capital and preserving or creating owner-occupied housing. Witnesses said section 1 would invest $120 million in CDFIs and nonprofit lenders to support production, preservation, and innovative mortgage products; section 2 would continue the workforce and affordable homeownership program focused on new construction and acquisition/rehab/resale; section 3 would provide $25 million for down payment assistance; and section 4 would provide $10 million for manufactured housing conversions to cooperative ownership. They argued the bill could help nonprofits compete with outside investors, respond to rising construction costs, and expand opportunities in both the metro and greater Minnesota. One testifier noted state funding has recently supported about 100 to 140 ownership units per year, far below the level needed to address demand. Members raised questions about whether the down payment assistance pilot would be distributed fairly across the state, whether the bill could use state surplus dollars instead of ARP funds, and whether the forgivable loans would create tax issues. The author and staff said the down payment assistance is statewide, the bill does not favor one region over another, and the ARP-based structure creates some loan and reporting restrictions that would not necessarily apply with state funding. Another member highlighted the large racial homeownership gap and the limited number of homes available under $300,000 in the metro area. No vote or formal action was taken during the portion provided.

Keywords: 1187, senate, all

Summary: The hearing focused on a bipartisan effort to address Minnesota’s “gap cases,” where defendants found incompetent to stand trial have had criminal cases dismissed without a clear path to competency restoration or ongoing court oversight. Senator Jim Abeler opened by describing several violent crimes committed by people who had been released after incompetency findings, arguing that the state needs a system that both protects due process and prevents further harm. Senator Karla Bigham echoed the need for a fix, citing the shortage of mental health beds, the role of counties, and the importance of public safety. The senators said the goal is to merge the task force proposal and the county attorneys’ proposal into one solution. County attorneys Mark Metz and Janet Reiter testified in support of SF 3728, saying the current system relies on a mix of criminal procedure and treatment law that lacks clear statutory authority and often leads to dismissal of charges without services to restore competency. They said the bill would create direct placement from criminal court into treatment or restoration services, establish forensic navigator positions to help courts and defendants, allow courts to set conditions and supervision for people awaiting competency evaluations, and carve out exceptions for certain repeat or serious misdemeanors. Reiter also said the bill would add a juvenile task force amendment to address competency restoration for minors. In response to questions, the authors and county attorneys said the bill is intended to keep courts involved, close jurisdictional gaps, and allow community supervision where appropriate, while also encouraging more treatment capacity. They acknowledged that the bill does not itself fund additional mental health beds, though an amendment was expected to add county funding for probation and related oversight. The hearing ended with agreement that the issue is complex but urgent, and that further testimony from county commissioners and community corrections would help determine the final funding and implementation details.

Keywords: 1187, senate, all

Summary: The Senate debated Senate File 2302, which would allow Minnesota to join the nurse licensure compact already used by 39 other states. Supporters argued that health care and nursing have become more mobile, especially with telehealth and changes accelerated by the pandemic, and said the compact would make it easier for nurses to practice across state lines and follow patients who move or receive remote care. Opponents said Minnesota’s current licensing system already works well, protects high standards, and remains easy for licensed nurses to navigate. They argued the bill would not address why nurses are leaving bedside work and could instead make it easier for hospitals to replace them without fixing staffing problems. One senator also said the compact could create inconsistencies in remote monitoring care if a patient leaves Minnesota, since a doctor could continue following the patient but a nurse could not unless Minnesota joined the compact. The bill passed the Senate by a vote of 35-32, and its title was agreed to.

Keywords: 1187, senate, all

Summary: The committee first heard a presentation from the Center for Economic Inclusion on postsecondary education and workforce equity. Isaac Russell and Andrea Firsten described the organization’s work on shared accountability, inclusive economic development, and workforce/business consulting. They highlighted racial disparities in college enrollment, persistence, and completion, noting that students of color are less likely to enroll in postsecondary education, more likely to drop out, and are overrepresented in developmental education. They argued that closing these gaps is important to meeting Minnesota’s educational attainment and workforce needs, and they pointed to co-requisite remediation, guided pathways, multiple-measures placement, student navigation supports, and more flexible state grants as promising reforms. They also emphasized income disparities tied to degree attainment and said these issues matter for workforce development and employer recruitment. The committee then took up Senate File 3718, a workforce development scholarships expansion bill focused on adding construction as an eligible occupational area. Senator Bach and the bill’s testifier, John McGuinn of the Rochester Area Builders Association and Builders Association of Minnesota, said construction faces labor shortages and an aging workforce, and that the industry offers real, long-term careers supported by apprenticeships and technical training. Members broadly supported the bill and echoed the need to promote construction careers, while one member raised a question about whether adding a new workforce area would require additional funding and said that would need to be checked with the Office of Higher Education before the bill moved to the Finance Committee. No vote was taken on the bill in the portion provided. The transcript then shifted to a separate bill on ALS research, where an author’s amendment was moved to replace the bill text with a delete-all amendment and redirect the proposal to a $20 million research appropriation. The sponsor explained that ALS affects a relatively small number of Minnesotans but remains a serious disease with no cure, and said the funding would support research at multiple institutions, including the University of Minnesota, Mayo Clinic, and Essentia. The amendment motion was made and the committee proceeded to the next steps, but the transcript excerpt does not include a final recorded vote or disposition.

Keywords: 1187, senate, all

Summary: The committee met on March 8, 2022, with a quorum present and took up several transportation-related bills. On Senate File 3680, the committee adopted the A1 amendment with an oral technical change clarifying that the commissioner must not “suspend or revoke” in the relevant provision, then passed the bill and re-referred it to the State Government Committee. Senator Lang described the bill as a fix to earlier Real ID-related enforcement issues, aimed at making the law less rigid while preserving protections. The committee then heard Senate File 3581, which was amended with an A2 and described as implementing a Driver and Vehicle Services recommendation to allow full-service providers to fulfill requests and receive fees for copies of driver records, crash reports, and vehicle records. The bill was recommended to pass and re-referred to the Civil Law Committee. The next bill, Senate File 3582, was presented as the main omnibus DVS bill and was amended with an A8 delete-all; the committee did not take final action and instead laid the bill over for later consideration. Testimony on Senate File 3582 focused on DVS modernization, exam station access, REAL ID pre-application links, publishing study materials, and fee changes. DVS Director Pong Zhang supported many provisions but raised concerns about the fee-sharing structure for online and mail transactions and said the agency would provide fiscal note data, while also noting the bill would require significant staffing and programming changes. AFSCME’s Pat Benner supported security improvements, staffing investments, and several modernization provisions, but opposed third-party testing for license exams and warned that workers could be displaced without retraining protections. Senators also discussed deputy registrar compensation, exam station availability, and the earlier school bus third-party testing model, with no final vote taken on the laid-over omnibus bill.

Keywords: 1183, house

Summary: The committee met on March 8, 2022, approved the minutes from the March 3 meeting by voice vote, and then heard a presentation from the Office of the Legislative Auditor on its evaluation of the Minnesota Department of Education’s role in addressing the achievement gap. Auditor Judy Randall and evaluator Sarah De La Cueva said the report found no single statutory definition of “achievement gap,” no common method for measuring it, and limited clarity in law about MDE’s specific responsibilities. They recommended that the legislature define the term in law, clarify MDE’s role, and consider whether to define “opportunity gap” as well. The OLA reviewed four K-12 initiatives: World’s Best Workforce, Achievement and Integration, American Indian education, and Regional Centers of Excellence. It found that MDE had not fully met some reporting requirements in World’s Best Workforce and that the statute’s “sufficient progress” standard was unclear. For Achievement and Integration, the OLA said the review deadline was too early for districts and MDE to use complete data, and it recommended shifting timelines and placing more responsibility of improvement planning on districts with MDE guidance. For American Indian education, the OLA said MDE should develop a plan specific to that population rather than relying on a broader department-wide plan. It also found the Regional Centers of Excellence had a positive impact and suggested expanding access if funding allowed. Commissioner Heather Mueller thanked the OLA and said MDE agreed with several findings, especially the need for clearer timelines and more statutory clarity in some programs, but took exception to parts of the report. She said MDE’s broader work on achievement gaps extends beyond the four programs reviewed, emphasized the importance of local control, and argued that staffing and funding constraints limit what the department can do. She also said the regional centers are effective but difficult to replicate under current federal requirements, and that MDE’s strategic plan reflects its leadership even though statute does not require such a plan.

Keywords: 1183, house