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March 20, 2023

Minnesota Update

Legislature Works Toward Second Deadline
As the legislature works toward Friday’s second committee deadline, lengthy committee hearings continue as legislators will work into the evening most nights this week to hear dozens of legislative proposals that were previously heard, and thus met the first deadline, in the other chamber. Some committees will work to assemble and pass omnibus policy bills before the end of the week while others may turn their focus towards assembling omnibus budget bills that must be passed out of committee before third committee deadline, which is April 4. The legislature will continue to work at a furious pace until adjournment in late May but will welcome a needed spring break in early April.

Senate Votes on Bonding Bill
On Thursday, March 16, the Minnesota Senate took up and attempted to pass its bonding bill. However, the bill failed on at a 33-32 as it fell well short of the 60% supermajority threshold of forty-one required for a bonding bill. The bill failed to receive any of the seven Republican votes it will eventually need as members of the Senate minority generally refused to agree to the infrastructure package without substantial tax cuts, including a complete elimination of the state tax on social security benefits. As the session wraps up, a bonding proposal will likely be a piece of the overall budget agreement to end the session as it is a key priority for Gov. Walz and DFL legislators.

Governor Announces Revised Budget
Following the updated February budget forecast, last week Gov. Walz released his revised budget recommendations. A few notable changes include:

  • Increased public safety aid to local governments across the state;
  • $240 million to fund lead service line replacement in community water systems across the state;
  • $160 million to support communities to fund several opioid-related prevention and engagement grant programs and resources for reducing opioid deaths;
  • A $2,500 tax credit for those who purchase new electric vehicles;
  • Increased levels of higher education funding; and,
  • Permanent increase to Local Government and County Aid Programs, which would help pay for needs such as roads and infrastructure that would otherwise use tax dollars to fund.

Free School Lunch Passes Legislature; Gov. Walz Signs into Law
After much debate, the Minnesota Legislature finalized legislation that would provide free school breakfast and lunch for all Minnesota students. Gov. Walz signed the bill last Friday. It is expected to cost the state about $200 million per year.

Cannabis Bill Continues to Move
Legislation that would legalize recreational adult use of cannabis in Minnesota continues to move through the House and Senate committee process. Both the House and Senate bills continue to evolve as they move through committees, and stakeholders continue to meet with the authors in both bodies to try and resolve concerns they have with the bill. Gov. Walz supports legalization of cannabis and has included funding for the startup of the regulatory program in his proposed budget.

Legislative Deadlines
The following are a series of committee deadlines that will guide the Minnesota Legislature’s process as they move through the session:

  • March 24, 2023: 2nd Committee Deadline - committees must act favorably on bills, or companions of bills, which met the first deadline in the other House.
  • April 4, 2023, 5:00 p.m.: 3rd Committee Deadline - committees must act favorably on major appropriation and finance bills.
  • April 4, 2023, 5:00 p.m. to April 10, 2023: Legislative Recess
  • May 22, 2023: Deadline to adjourn legislative session.

Federal Update 

Good afternoon. Watch for Cabinet members testifying on Biden's budget. House Republicans plan to pass their "Parents Bill of Rights." Here’s your Federal CapWatch for Monday, March 20.

Schedules

 White House: Biden and the first lady discuss mental health awareness with the cast of "Ted Lasso."

House: Not in session; next convenes in a pro forma session Tuesday at 5 p.m., and for legislative business on Wednesday at 2 p.m., with votes postponed until 6:30 p.m.

Senate: Not in session; next convenes at 3 p.m. on Tuesday.

 CommitteesBiden administration officials testify on the president's fiscal 2024 budget request to various committees on Wednesday and Thursday.

Biden's Top Officials Trek to the Hill to Tout Budget
More than 20 budget hearings are happening this week, with at least six Cabinet members expected on the Hill, including U.S. Secretary of State Antony J. Blinken four times.

All of the budget hearings are packed into Wednesday and Thursday. Here's a look at a few that could fall under the radar amid the flurry:

  • Librarian of Congress Carla Hayden testifies Wednesday to the Senate Legislative Branch Appropriations Subcommittee, alongside acting Architect of the Capitol Chere Rexroat, on their respective offices' funding needs.
  • Hayden is back Thursday testifying to the House Legislative Branch Appropriations Subcommittee. Ahead of that appearance, U.S. Capitol Police Chief J. Thomas Manger testifies before the same panel on the force's budget.
  • U.S. Forest Service Chief Randy Moore testifies to the Interior-Environment Appropriations subcommittees in both the Senate and House.
  • The Army officials responsible for housing and energy testify Thursday to the House Military Construction-VA Appropriations Subcommittee.

House GOP Plans to Pass 'Parents Bill of Rights'
House Republicans aim to pass legislation this week on what's become a core issue for the party: parental oversight of K-12 schooling. GOP leaders have made the "Parents Bill of Rights" a top priority early on in the new majority. It's expected to be a key plank for messaging by Republicans on the 2024 campaign trail. But the bill isn't expected to advance in the Democrat-controlled Senate. The sponsor, Representative Julia Letlow, R-LA, says it isn't political but would ensure that parents "have a seat at the table when it comes to their children’s education."

Democrats denounce the bill as unnecessary and driven by the GOP political agenda, targeting public educators. The measure would affirm a parent’s right to address a school board and receive information about incidents of violence at their child’s school and would require schools to provide a list of books and other curriculum materials. Majority Leader Steve Scalise, R-LA, has penciled in a final vote on the bill for Friday. The House Rules Committee is expected to take up the measure early this week. Debate in that committee could be long and heated, as it was in a House Education and the Workforce Committee markup of the measure.

The Larkin Hoffman Government Relations Team
    Margaret Vesel
 
 

Matthew Bergeron

Andrew Carlson
Peter Coyle
  Bill Griffith Grady Harn 
Megan Knight

  Peder Larson
Lydia Lodoen
Robert Long

  Gerald Seck    Brandan Strickland  
     
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This newsletter is provided as a service to our clients and firm associates. While the information provided in this newsletter is believed to be accurate, it is general in nature and should not be construed as legal advice.