African Reserves Loans

Minnesota Legislative Session 2022: What’s Happening?

A special session is “likely” after state lawmakers failed to finish discussing key proposals before the deadline expired early Sunday morning.

Gov. Tim Walz was due to meet with legislative leaders to discuss a timeline for carrying out these actions, as the DFL and GOP seek to reach an agreement on tax cuts and spending for the 9-year budget surplus. billions of Minnesota dollars.

“The sooner the better, it makes more sense,” Walz said in the House of Representatives Monday morning, though Republicans in the Senate appeared reluctant to extend the legislative session.

Here’s a look at some of the major bills that passed this legislative session, and which didn’t cross the line by Sunday’s deadline:

Tax relief package (HF3669)

  • A conference committee reached an agreement on taxes, but it was not agreed to by the two legislative bodies by Sunday’s legislative deadline. Minnesotans will not benefit from these tax cuts unless the governor calls a special session.
  • The Senate provision included an elimination of all income taxes on Social Security benefits. The House version provided property tax relief, primarily in the form of transforming the tenant credit into a refundable income tax credit. Both made it to the final version of the bill, as did a reduction in the state income tax bracket from 5.35% to 5.1%.
  • Taxes would be reduced by a total of $1.4 billion in the current biennium and $2.4 billion in the next.
  • The other tax advantages are as follows:
    • An increased tax credit for children and dependents with a higher elimination threshold ($55.5 million)
    • A refundable tax credit for people whose natural gas bill skyrocketed in February 2021 due to the Polar Vortex ($14.7M)
    • A higher income threshold for those eligible for the K-12 education tax credit ($13.3M)
    • An extension of the small business investment tax credit ($7 million)
    • Changes to eligibility for the Beginning Farmer Tax Credit ($3.7M)
    • Subtraction of military pension, with expanded eligibility ($1.3 million)
    • An increase in the second level of the research and development credit from 4% to 4.25% ($1.2 million)
  • Other reductions that would be made pursuant to this measure include:
    • $36.1 million in corporate and franchise taxes
    • $15.9 million in general property tax statewide
    • $11.3 million in sales and use taxes
    • $1.1 million in property taxes
  • The bill also includes $44 million in increases to local government assistance.

Frontline Workers/Unemployment Insurance/COVID Response Package (SF2677)

  • This bill was approved by both the House and the Senate and signed by Governor Walz earlier in the session.
  • The House and Senate agreed to spend $4.3 billion in reserves and U.S. federal bailout money on reinsurance, unemployment insurance fixes, checks for some frontline workers and the COVID funding.
  • $2.7 billion is being used to repay federal borrowing that allowed non-insurance checks to circulate during the pandemic and to replenish the state trust fund that was depleted before borrowing began.
  • $500 million will be distributed to 670,000 healthcare, restaurant and emergency workers who stayed on the job during the first months of the pandemic.
  • $190 million can be spent in various ways on pandemic costs, such as additional vaccinations, testing and healthcare personnel.
  • $891 million subsidizes rates for individual and small group health insurance customers who have high medical costs, otherwise known as reinsurance.

Alcohol bill (SF3008)

  • State liquor laws were modernized with the passage of this bill, which was signed into law by Governor Walz over the weekend.
  • Large craft brewers can now sell growlers and crowlers in tasting rooms.
  • Small craft brewers can now sell bottles and cans at drinking establishments.
  • Distilleries can sell directly to the consumer, while also offering cocktail rooms in their establishments.
  • Wine and beer sales can now take place at town ball games.
  • Stations can now serve alcohol with an ABV greater than 3.2%
  • An alcohol sales extension is now in effect for live World Cup matches.
  • Anoka can create an outdoor social district where alcohol consumption is allowed.
  • Resolve a previous issue with the Coleman Act that prohibits exclusive contracts in the sale of hard spirits by treating in-state and out-of-state manufacturers alike.

Education Bill (HF3872)

  • Lawmakers could not agree on how to spend an agreed additional $1 billion on education.
  • Differences remain on how much to spend on raising funds to cover school districts’ special education costs.
  • More than 65,000 Minnesota students would receive increased state grants, increasing opportunities for students to become debt-free from higher education.
  • The two sides remained divided on how to improve literacy for young students.

Public Safety Bill (SF2673)

  • Bill that failed to pass and reach agreement on the legislative floor.
  • Senate Republicans want to spend big on recruiting and retaining police officers.
  • Senate Republicans also want to propose tougher policies for longer criminal sentences and new or expanded crimes.
  • House DFL members have pledged to strengthen criminal investigations and non-policing initiatives, such as money for community-based nonprofits that do violence response work.
  • Major differences remain in how violent crime is tackled.

Agriculture/livestock package (HF3420B)

  • Passed with bipartisan support on Sunday and is now heading to the governor’s office for approval. Walz expressed his Support for the package and must sign it.
  • A combined amount of $128.4 million will be allocated as follows:
    • $18.4 million for drought relief and disaster relief, primarily for livestock and specialty crop producers impacted by the 2021 dry spell.
      • $8.1M will go to help livestock and specialty crop farmers
      • $2.5 million for drought relief loans
      • $5.3 million for seedlings killed by drought
      • $3 million for animal disease testing equipment as the state currently faces a chronic wasting disease, outbreak of avian flu and others.
    • $110.7 million to help build more reliable high-speed Internet infrastructure.
      • $50 million of public funds will be spent over the next three years on broadband subsidies
      • $60.7M from capital projects will be funded to build or support broadband infrastructure

Mental health package (HF2725)

  • Passed with bipartisan support on Sunday and is now heading to the governor’s office for approval. Walz expressed his support for the bill in the past and should sign it.
  • $92.7 million will fund mental health programs and initiatives such as:
    • Establish loan forgiveness for mental health professionals
    • Expand the use of mobile crisis service teams
    • Fund school-linked mental health grants to increase accessibility for uninsured children and youth
    • Pay for expanded mental health services for defendants deemed unfit to stand trial, approximately $10.1 million
    • A State Skills Restoration Council will be created within the judiciary, funded to the tune of $22.3 million. The board will also hire and supervise “forensic navigators”. This obligation includes the coordination of mental health services to accused persons found unfit to stand trial.
    • $1 million for a licensed community mental health center specializing in services to African American children and families.

Legalization of sports betting (HF778)

  • A deal was not reached between the Senate and House in time for Sunday’s deadline.
  • The DFL-run house adopted the HF 778, which would have given Minnesota’s 11 Native American tribes control of online and retail sports betting.
  • Independent commercial operators would have been allowed to open sites, but only through contracts with tribes.
  • The GOP-led Senate disagreed with giving the tribes exclusive rights and wanted two racetracks included, which drew objections from the Minnesota Indian Gaming Association.
  • The bill would have included a 10% tax on gaming revenue.