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March 8, 2022

Special Audit of the Southwest Light Rail Project

On Thursday, March 4th, the Minnesota House of Representatives voted 129-1 to authorize a special audit of the Southwest light rail transit line.  Authored by
Rep. Frank Hornstein (DFL-Minneapolis), H.F. 3035 directs the Office of the Legislative Auditor to conduct a special review of the Southwest light rail project after recent reports of cost overruns and delays.  

Originally slated to begin service in 2023, the Southwest light rail line will eventually connect the suburban community of Eden Prairie to south Minneapolis.  However, in early February, the Metropolitan Council announced that the project would be delayed until 2027 and could cost as much as $200 million more than anticipated.  Speaking to the scope of the special audit, Rep. Hornstein noted that “the OLA will examine the reason for the project delays and cost increases, whether the schedule and costs were properly managed, and whether the Metropolitan Council gave sufficient scrutiny to route decisions and project choices.”  The companion bill, S.F. 2676 (Dibble), has progressed through multiple Senate committees and is expected to come before the full Senate in the coming weeks.  


Senate Republicans Advance Education Priorities 

Earlier on Thursday, the Minnesota Senate took up and passed two key pieces of the Senate Republicans' 2022 education agenda.  The first, S.F. 2729 (Chamberlain), would prohibit school boards from requiring parents to disclose their address as a prerequisite for speaking at board meetings.  The second, S.F. 2575 (Gazelka), would require schools to make all instructional materials available to parents immediately upon request.  Speaking to the need for the proposals, Sen. Roger Chamberlain (R-Lino Lakes), argued that “Parents can’t be pushed aside; they can’t be bullied into submission. And they can’t be forced to reveal private information just to participate in a meeting about their child’s school.” 
 

House Republicans Offer Their Take on Public Safety

On Tuesday, March 1st, members of the House Republican Caucus held a press conference to outline a series of public safety initiatives their caucus hopes to promote this session.  With public safety issues anticipated to be front and center during the 2022 election, the House Republican proposal focuses on three primary issues: crime prevention, police officer recruitment and retention, and changes to the criminal prosecution system. 

  • Crime Prevention: The proposal would appropriate $2 million for ShotSpotter gunshot detection technology, increase criminal penalties for carjacking, require electronic home monitoring for individuals released without bail, and require offenders to serve full prison sentences, without the possibility of early release, after a third offense.  The proposal would also appropriate $15 million for police body cameras. 

  • Officer Recruitment and Retention: The proposal would appropriate $1 million for the Pathways to Policing Program and $2.5 million for education reimbursements and create a tax exemption for public pension income for police officers and firefighters.

  • Reforming the Criminal Prosecution System: The proposal would require county prosecutors to file felony charges when supported by probable cause.  County attorneys would also be required to report on instances where charges were dropped.  Lastly. the proposal would also put control of criminal sentencing guidelines under the jurisdiction of the Legislature instead of the guidelines commission.


Third-Party Candidate Announced Gubernatorial Bid

On Tuesday, March 2nd, former WCCO News Anchor
Cory Hepola announced a third-party campaign for governor.  Seeking the endorsement of the newly launched Forward Party MN, the Hepola campaign complicates an already uncertain electoral landscape as several prominent Republicans are seeking to challenge first-term DFL
Gov. Tim Walz.  The Hepola campaign announced its intentions, stating: “Exhausted by the toxic two party-system divisiveness that has failed our state and our country for decades, Cory will be running a positive, transparent and accessible campaign that speaks to all Minnesotans who feel disillusioned by the status quo.”  


Federal Update

Waiting for an Omnibus 

The bipartisan effort to aid Ukraine and a Democratic-led push for more pandemic-related funds are complications efforts by Congress to pass an omnibus fiscal 2022 spending bill or another short-term funding extension. Even if an omnibus deal does emerge, there would be little time to draft and pass it without needing at least a brief continuing resolution. The House is scheduled to be in session only through early Wednesday as Democrats hold a retreat in Philadelphia. Senate Democrats will hold a retreat in Washington.

The potential for a big bill has lawmakers pushing to get their priorities into it. One example: Senators, including Democrats in competitive races, want to include a bigger tax break for research and development in any upcoming legislative package, with an omnibus the most obvious candidate. Sen. Maggie Hassan, D-N.H., and Todd Young, R-Ind., led a bipartisan letter last week saying that unless Congress quickly restores full and immediate R&D expensing, American jobs and investment are at risk.

Along with tax breaks, the letter called for small-business incentives in any upcoming legislative package. Fifteen senators wrote to Majority Leader Charles E. Schumer, D-N.Y., and Minority Leader Mitch McConnell, R-Ky., to “support U.S. economic competitiveness and innovation in any upcoming legislative package by expanding the research and development tax credit for small businesses and preserving full and immediate expensing for R&D investments.” Companies were able to deduct all of their R&D spending from their taxable income right away until a change that took effect this year — as part of the GOP 2017 tax overhaul — requiring them to gradually write off those expenses over five years.

Lawmakers look to say 'nyet' to Favorable Russian Tariffs 

Lawmakers are looking at putting an end to Russia's most-favored-nation status, which allows most Russian products to enter the U.S. at generally lower tariff rates, as a next move to inflict pain on Moscow for its invasion of Ukraine.

The proposal follows Canada raising its tariff rates on imported Russian goods last week. U.S. imported Russian goods valued at $29.7 billion and exported goods valued at $6.4 billion to Russia in 2021. But supporters say revoking most-favored-nation status, also known as permanent normal trade relations, is a tool in addition to banking sanctions and export restrictions imposed by the U.S. and allies to pressure Russia to end the unprovoked attack on Ukraine. Speaker Nancy Pelosi brought up that general subject in a Dear Colleague letter on Sunday. She said the House was exploring legislation to "ban the import of Russian oil and energy products into the United States, repeal normal trade relations with Russia and Belarus, and take the first step to deny Russia access to the World Trade Organization," as well as allow the raising of tariffs. 

Lobbyists ask for a Green Light to Roam Capitol 

After two years of pandemic- and insurrection-related security restrictions, lobbyists are doing what they do best and urging Congress to let them roam the halls of Capitol Hill once again. The National Institute for Lobbying and Ethics, which represents lobbyists, is putting together a letter to House and Senate leaders to be delivered Wednesday. The organization is especially concerned with strict rules on the House side. Currently, lobbyists may conduct in-person meetings on Capitol Hill, so long as a congressional aide signs them in and escorts them around the buildings. 

Please reach out to any of the Larkin Hoffman Government Relations team members with any questions. 



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Larkin Hoffman provides counsel to a wide variety of ‎organizations, from ‎small businesses and nonprofits to  Fortune 500 companies, in ‎many areas of practice including ‎corporate and governance matters, litigation, real ‎estate, government relations, labor and employment, intellectual property, ‎information technology, ‎franchising and taxation. The firm also serves the needs of individuals in many ‎areas ‎including trusts and estates, personal injury and family law.

 

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