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February 6, 2023

Minnesota Update

Minnesota Legislature Continues Moving Priorities Through Process
A month into the 2023 legislative session, the Minnesota legislature continued working at a fast pace as legislators sought to advance several DFL priorities prior to next month’s committee deadlines. The high-profile initiatives moving through the committee process last week included legislation which would legalize adult-use of cannabis, provide paid sick time and family/medical leave, restore the right for certain convicted felons to vote, and provide free meals for kids at school. 

Legislative committees have begun to unpack and discuss the governor’s budget recommendations even as some initiatives, including the various paid leave proposals, have already been heard in multiple committees. Others are still in the process of being formally prepared for introduction as individual legislative proposals. 

Renewable Energy Standard Heads to Governor’s Desk 
On January 26, 2023, the House of Representatives took up and passed H.F. 7 (Long) which would require the state’s electricity grid to be 100 percent carbon free by 2040 on a 70-60 vote. In promoting the bill, Majority Leader Jaimie Long (DFL-Minneapolis) and other Democrats argued that an ambitious push towards renewable energy is necessary to address growing concerns over climate change, while Republicans have referred to the proposal as the “blackout bill” and argued it will make energy unreliable and expensive. Last Thursday, the Senate took up the proposal, authored by Sen. Nick Frentz (DFL-North Mankato), and after a long evening of debate, passed it by a vote of 34-33. The proposal now heads to Gov. Walz for his signature. 

Social Justice-Centered Policy Reforms Advance in Both Chambers
With single-party control of state government for the first time in a decade, legislative Democrats have invested significant time and energy in a number of social justice-centered proposals. For example, after a lengthy debate last Monday, the House of Representatives passed H.F. 4 (Gomez) which has commonly been referred to as the: Drivers Licenses for All” bill. The proposal would eliminate the need for an individual to demonstrate lawful presence in the country as a prerequisite to getting a driver’s license or state identification card. The bill passed the House of Representatives on a 69-60 vote. The Senate companion, S.F. 32 (Mohamed), continues to make its way through the Senate. 

Last week, the House of Representatives passed H.F. 28 (Frazier), a bill that would restore voting rights for individuals convicted of a felony as soon as they are released from incarceration. Currently, Minnesota requires that the full sentence, probation, parole, and/or supervised release, along with incarceration, must be completed for voting rights to be restored. The bill passed on a 71-59 vote. 

Capital Investment Process Gets Underway
In addition to the governor’s budget proposals, committees in both chambers have begun to dig into Gov. Walz’s infrastructure proposal. While a portion of the infrastructure plan would be funded by the customary sale of general obligation bonds, the governor is asking that the legislature approve $1.6 billion in spending from the General Fund to cover certain projects. This allows a large portion of the bonding proposal--approximately $1.2 billion—to go toward asset preservation around the state.  The proposal would also support investments in roads, water system and bridge replacement, housing and homelessness, community and equity, and environment protection. A few key priorities for Governor Walz include $470 million for housing projects, including renovations for Minnesota’s veteran’s homes, $520 million to support projects in communities that have historically been excluded from the state's capital investment process, $300 million for environmental stewardship projects, $260 million for buildings in the University of Minnesota and Minnesota State system, $133 million toward Minnesota Department of Natural Resources amenities, and $560 million for road, bridge, and water system projects across the state.  

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 10, 2023: 1st Committee Deadline - committees must act favorably on bills in the House of origin.
  • March 24, 2023: 2nd Committee Deadline - committees must act favorably on bills, or companions of bills, that met the first deadline in the other House.
  • April 4, 2023, at 5:00 pm: 3rd Committee Deadline - committees must act favorably on major appropriation and finance bills.
  • April 4, 2023, at 5:00 pm - April 10, 2023: Legislative Recess
  • May 22, 2023: Deadline to adjourn legislative session

Federal Update

China is top of mind for members in both chambers this week. House Republicans want to toss out a requirement that foreign travelers be vaccinated against COVID-19, and Biden's State of the Union on Tuesday could call out airlines.

Lawmakers Assess China's Threats and Competition 
Lawmakers in both chambers turn their attention to China and the threat it poses to the United States' security and economy, with three hearings scheduled so far this week. The hearings follow a surge of criticism from Republicans over the Biden administration’s response to the Chinese spy balloon that flew over the continental U.S. before being shot down  Saturday off the East Coast. Former National Security Adviser Robert C. O'Brien and others testify Tuesday to the House Armed Services Committee on the threat of the Chinese Communist Party to the U.S.

At the same time, House Financial Services looks at how to combat the economic threat posed by China. Deputy Secretary of State Wendy Sherman goes before Senate Foreign Relations on Thursday to discuss evaluating U.S.-China policy through the lens of strategic competition. This wasn't the first time the U.S. government tracked such a balloon. A senior Defense official speaking on background told reporters Saturday that similar balloons "transited the continental United States briefly at least three times" during the Trump administration and once at the start of the Biden administration, but this one lingered longer than its previous counterparts.

On Sunday, Senate Majority Leader Charles Schumer (D-NY) announced an all-senators classified briefing for February 15 on the balloon and on how the U.S. military stacks up against China. Schumer called GOP rhetoric "breathless, political, and premature."

House Republicans Aim to Allow Unvaccinated Foreign Travelers
House Republicans want to allow unvaccinated foreign travelers into the country. They plan to vote on a bill (HR 185) this week to terminate the CDC rule to require COVID-19 vaccinations for foreign travelers. The measure is sponsored by Kentucky Republican Congressman Thomas Massie. The rule requires any travelers who are noncitizens, and not immigrants, arriving at a U.S. airport to be vaccinated against COVID-19. Massie's measure takes an extra step by nullifying the reinstatement of a similar rule in the future. But the legislation isn't expected to get far in the Democrat-controlled Senate.    

State of the Union: Biden Faces Headwinds, Could Call Out Airlines 
President Joe Biden gives his State of the Union to a divided Congress on Tuesday. Biden took the White House with big promises for transportation. His address could echo Democrats’ demands for airline passenger protections, dig into aviation safety and lean on key infrastructure law projects. On the environment, Biden will be able to tout wins. 

But House Republicans are calling for significant cuts in nondefense spending. Many in the new majority have also criticized the EPA's efforts to regulate certain sectors of the economy. Any further federal action will largely depend on the pace set by the EPA and other agencies. The window for legislative breakthroughs on energy has also likely closed. 

The president could lambaste oil and gas companies over their record-setting profits. But with Republicans controlling the House, a windfall tax on energy companies, something Democrats embraced last year, is all but guaranteed not to pass. 
 

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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