Keywords: 1187, senate, all

Summary: The committee first took up Senate File 3066, as amended by a delete-all A1 amendment. Senator Weber said the bill would clarify that the measure applies only to commercial PACE, not residential PACE, and would add farmland and water conservation definitions to the commercial PACE statute. He and testifiers from the Saint Paul Port Authority and Cargill described PACE as a voluntary financing tool that has supported more than 350 projects statewide, and said the bill would let farmers use it for permanent farmland improvements such as drainage, irrigation, grading, soil improvements, fencing, tree crops, and water systems for grazing. Supporters argued the change would help farmers manage weather volatility, inflation, and other pressures while improving land resiliency. The committee adopted the amendment and then recommended the bill to pass and go to the floor by voice vote. The committee then heard Senate File 3225, which would raise the dollar threshold for Public Utilities Commission approval of utility asset sales, leases, or plant improvements. Senator Senjem offered an oral amendment to replace the existing $100,000 threshold with $2 million, and the committee adopted it. Xcel Energy’s witness said the current threshold, set in 1974, is too low for a large utility and causes unnecessary regulatory review of routine transactions, while noting the company already seeks PUC review through later rate cases and is open to further stakeholder discussions on the right number. A Citizens Utility Board representative agreed the statute should be updated, but urged the committee to consider customer impacts and the different effects on large and small utilities; she said a $2 million threshold would be a very small rate impact for Xcel but could be more significant for smaller utilities such as Otter Tail Power. The committee then recommended SF 3225, as amended, to pass and move to the floor by voice vote. The meeting then moved into a confirmation hearing for John Tuma, the governor’s appointee to the Public Utilities Commission. Tuma said he was honored to continue serving, emphasized the need to watch natural gas prices and utility bills in light of the war in Ukraine, and described himself as a Republican who works across party lines. In extended remarks, he highlighted Minnesota’s long history of utility regulation, conservation, and comparatively low residential electric bills, arguing that the state’s efficiency efforts have helped keep residential bills low and shifted more of the revenue burden away from large industrial customers. No vote on the confirmation was taken in the portion of the meeting provided.

Keywords: 1187, senate, all

Summary: The committee heard Senate File 3413, as amended by the A3 amendment, from Senator Rarick. The bill is intended to address a shortage of manufactured-home installers by allowing licensed residential building contractors to complete a three-hour course and install used manufactured homes. Testimony from Mark Bruner of the Manufactured and Modular Home Association of Minnesota explained that the bill would expand the pool of eligible installers and also update how used manufactured homes can be identified for resale when the original HUD label is missing, allowing use of the permanently affixed data plate instead. Members asked about how often homes are moved and clarified that the qualifying person, not the company itself, would need to complete the training. The committee voted to recommend passage as amended and re-refer the bill to the Labor and Industry Policy Committee. The committee then took up an overview of Senate File 3575, Minnesota Housing’s agency policy and technical bill, with no action taken. Agency staff described several sections, including a clarification of Minnesota Housing’s debt limit calculation, which they said should apply only to certain general obligation debt and not to most revenue bonds or housing infrastructure bonds. They also explained proposed authority to refund bonds when market conditions are favorable, describing it as a refinancing tool intended to reduce debt service rather than increase borrowing. Members questioned how the debt cap and refunding provisions would work, whether the sections were tied together, and what safeguards would remain if the cap calculation changed. Agency representatives said the provisions could move separately, that refunding would require working with the Department of Management and Budget, and that housing infrastructure bonds remain subject to separate legislative authorization. They also clarified that some Minnesota Housing debt carries a state moral obligation or general obligation pledge, while other debt is agency debt, and that public housing bond proceeds generally do not return to the agency, unlike some housing infrastructure bond repayments.

Keywords: 1187, senate, all

Summary: The Senate Transportation Finance and Policy Committee heard a report from an independent expert review team on Driver and Vehicle Services, with testimony from Rick King, Theresa Wise, Jenny Hein, and Amy Albus. The presenters said the review was customer-focused and produced 31 recommendations after a 50-state survey, interviews with deputy registrars and stakeholders, and review of related reports. They said the work went beyond the original charge on filing fees and exam stations to address broader issues affecting deputy registrars, DVS operations, innovation, and self-service. A major topic was exam station capacity. The team said Minnesota had about 93 exam stations before COVID, dropped to the mid-teens during the pandemic, and that a range of 40 to 50 stations would likely provide adequate service given geography and statutory considerations. They also discussed reducing unnecessary work, including eliminating written exams for certain out-of-state transfers and ending the written test requirement for drivers age 21 and older moving from another state with a valid license. They noted concerns about high retake rates on both written and road tests, and suggested better study materials and data-driven improvements. They also said MinnDrive is functioning well overall, though some newer features like prorating are still settling in. On deputy registrar compensation and service delivery, the team recommended targeted filing fee increases for the most time-consuming transactions, including higher fees for noncompliant Class D licenses and REAL ID/enhanced licenses, and a share of self-service filing fees to support full-service deputy registrars. They said full-service deputy registrars are in high demand and are important to the transition toward self-service. Other recommendations included improving website and chat-based support, using mobile driver’s licenses, creating a rapid-response communication channel for front-line staff, refreshing the contract between DVS and deputy registrars with performance expectations, shifting toward transaction-based funding, and adding safety and de-escalation measures for employees. No committee vote or formal action was taken in the portion provided; the hearing was informational, and the chair indicated time for questions if available.

Keywords: 1183, house

Summary: House File 2752 was heard in committee as a University of Minnesota supplemental funding request totaling $65 million. Representative Clevorn presented the bill as support for higher education access and affordability, with three parts: $30 million to expand the systemwide Promise Program for students with financial need, $30 million to expand a Greater Minnesota scholarship for the Crookston, Duluth, Morris, and Rochester campuses, and $5 million for student support services such as advising, mental health, tutoring, and financial literacy. University officials Vice Provost Robert McMaster and Vice Chancellor Jeffrey Ratliff-Crane testified in support. They described existing Promise and Promise Plus aid, the Native American Promise Program, and the role of scholarship aid in supporting low-, middle-income, first-generation, and BIPOC students. They said the new funding would increase aid amounts, broaden eligibility to more middle-income families, help recruit and retain students at Greater Minnesota campuses, and strengthen support services that improve retention and on-time graduation. Student body president Abdulaziz Muhammad also supported the bill, citing student survey data showing tuition concerns and emphasizing the need for mental health, advising, and financial aid. Members raised several concerns and questions. Representative Noor asked about income eligibility and whether the program should better reflect area median income; McMaster said the proposal uses family income ranges, with the new scale reaching about $160,000 and weighted more toward middle-income students. Representative Albright questioned the timing of the request given recent tuition increases and asked about the university’s financial responsibility; McMaster responded that he does not set tuition and said tuition increases have been low over the past decade. Representative McLain asked for information comparing tuition growth with staff and administrative salary growth, which McMaster said he could not answer and would need university financial staff to provide. After closing remarks from Representative Clevorn, the committee renewed the motion and laid House File 2752 over for possible inclusion in the supplemental finance bill.

Keywords: 1183, house

Summary: The House K-12 Education Finance Committee met on March 1, 2022, with a quorum present and first approved the minutes from its February 24 meeting by voice vote. The committee then heard two bills and laid both over for possible inclusion in a future omnibus bill. The first, HF 2669 by Rep. Morrison, would give Eastern Carver County Schools authority to use existing levy capacity to acquire land and build a new transportation facility/bus garage. Morrison and district finance director Ron Meyer said the current Chaska facility is too small for the district’s growth, leaves about half the buses stored outdoors, creates fueling and routing inefficiencies, and has about $4.9 million in deferred maintenance; they emphasized there would be no state budget impact and that the district aims to keep local tax impacts flat. Rep. Drazkowski asked whether the authority should expire, suggesting a sunset date, but no amendment was adopted during the hearing. The second bill, HF 2117 by Rep. Hanson, would create a legislative exemption for ISD 191 (Burnsville-Eagan-Savage) so proceeds from the sale of unused school properties could be used for general fund or program costs rather than being restricted to capital expenditures. Hanson, Superintendent Teresa Battle, and Business Services Director Lisa Ryder said declining enrollment and school closures have created a need for flexibility to support district priorities such as early literacy and pre-K through 12 pathways programming. Members discussed the district’s career pathways work, and Rep. Thompson offered supportive comments. No public testimony was received on either bill, and the committee adjourned after announcing that the next day’s agenda would include a regional library bill, a presentation on the February forecast, and bills related to stable school funding.

Keywords: 1183, house

Keywords: 1183, house

Keywords: 1183, house

Keywords: 1183, house

Keywords: 1183, house

Keywords: 1183, house

Keywords: 1187, senate, all

Keywords: 1187, senate, all

Summary: Minnesota Management and Budget released its February forecast, projecting a $1.5 billion improvement for the current biennium and a total balance of more than $9 billion. Commissioner Jim Showalter said the outlook is strong, but emphasized that much of the improvement is one-time money and that the forecast remains uncertain because of inflation, supply chain issues, labor force participation, and the newly unfolding Russian invasion of Ukraine. He said the state is in a better position to manage risks than in prior years, with reserves and cash flow tools available. State economist Laura Kalambokitis reviewed the national and state economic outlook. She said the U.S. economy continues to recover, with unemployment at 3.9 percent nationally and 3.1 percent in Minnesota, though Minnesota’s labor force remains below pre-pandemic levels. She noted higher-than-expected inflation, stronger wage and salary income, and stronger corporate profits, but warned that the February outlook did not fully reflect the effects of Russia’s invasion of Ukraine, which could raise energy and commodity prices and increase financial market volatility. She also explained that corporate tax revenues are especially volatile because they depend heavily on corporate profits. Budget Director Anna Minney said general fund spending for the current biennium is forecast to be $270 million lower than in November, mainly because of lower E-12 education costs, savings in health and human services tied to the federal public health emergency extension, and lower child care assistance spending. Revenue forecasts were raised across major tax types, including $498 million more from individual income taxes, $212 million more from sales taxes, and $324 million more from corporate taxes. In Q&A, officials said the corporate tax forecast changed more because corporate profits are more volatile, clarified that the 3.6 percent figure referred to employment, not labor force participation, and said Minnesota’s direct trade exposure to Russia and Ukraine is limited, though some businesses and commodity producers could be affected.

Keywords: 1187, senate, all

Summary: The Senate Environment, Natural Resources Policy and Legacy Finance Committee heard Senate File 3055, as amended by the A5 amendment, which would allow cities within five miles of White Bear Lake to continue operating under DNR-approved water supply plans adopted before 2021, tie the bill to 2040 comprehensive plans, bar additional lawsuits under the same statute, create a work group with DNR, MDH, Met Council, and east metro communities to explore safe drinking water options, and sunset the law in 2041. Senator Housley said the bill was intended to address the effects of the White Bear Lake court ruling on municipal and non-municipal water permits, and the committee adopted the A5 amendment by voice vote. Testifiers from Hugo, Lake Elmo, and Oakdale supported the bill, arguing that the court-ordered pumping limits and irrigation restrictions were too rigid, could leave little or no water for schools, hospitals, businesses, and other uses, and were being imposed without a normal policy process. They also said the cities had already taken conservation steps and needed time and legislative help to find a workable long-term water supply solution. Brian Baer of Hugo described the White Bear Lake litigation as a court-driven process that had forced changes to municipal water permits and could reduce water use in the area by about 40 percent, which he said would threaten basic community functions. Christina Hant of Lake Elmo said her city faced conflicting directives from growth mandates, PFAS contamination, and the White Bear Lake ruling, and that a recent DNR analysis limiting use to 55 gallons per person per day would not work for a growing city with schools, medical offices, and businesses. She said conservation efforts had already been significant but would not by themselves solve the lake-level issue. Paul Reinke, mayor of Oakdale, similarly said the bill was needed so communities could collaboratively work through drinking water and lake-level concerns without harming quality of life or development. A senator asked about Lake Elmo’s density requirements, and Hant explained that the Met Council required at least three units per acre in certain areas and that the requirement had been upheld by the courts. The committee then heard from DNR representative Katie Smith, but the transcript provided does not include her remarks or any final committee action on the bill.

Keywords: 1187, senate, all

Summary: The committee heard Senate File 2704, authored by Senator Bach, which would give certain critical access hospitals with attached nursing homes more flexibility to reallocate beds and change how costs are reported for Medicare reimbursement. Senator Bach and North Shore Health administrator Kimber Alstead described the bill as a rural health care fix aimed at helping remote facilities like North Shore Health in Grand Marais remain financially viable without changing resident care or physical facilities. Alstead said the facility is the only skilled nursing home in Cook County, has lost about $1.5 million annually over 15 years, and could gain roughly $800,000 a year by shifting one nursing home household to swing-bed status on paper; she said the bill would let similar facilities increase licensed bed capacity from 16 to 25 beds and avoid closure. Jamie Kavanagh of the Institute for Justice supported the bill as a narrow solution for rural access but urged the committee to go further by removing the 25-bed cap or eliminating the medical moratorium and public interest review process entirely. She argued that restricting supply does not increase access and said moratoria can have anti-competitive effects. Several senators expressed support for protecting rural hospitals and keeping care close to home, while Senator Graham and Senator Wicklund raised concerns about the lack of information from the public interest review process and the bill’s broader applicability to other facilities. The committee adopted an oral amendment changing the bill language from “a” to “any,” making the proposal apply to any facility meeting the listed criteria rather than a single location. After discussion, the committee voted to recommend Senate File 2704 as amended to pass and place it on General Orders. Later in the meeting, the Minnesota Department of Health began a presentation on the hospital moratorium law and public interest review process, with Stefan Gildemeister outlining the law’s background, its purpose in limiting new hospital licenses and bed expansions, and the history of related policy changes.