Ewald at the Capitol

Governor's Emergency Powers

On April 14, 2021, Gov. Walz extended the state’s peacetime emergency for another 30 days to quickly help the state respond to the COVID-19 pandemic.

In response to the extension of the governor’s emergency powers, Rep. Steve Green (R-Fosston) in the House Rules and Legislative Administration Committee made a motion to suspend the rules and have HF101 brought up on the House floor; the bill would ask voters in the 2022 election if the state’s constitution should be amended to cap the peacetime emergency period at seven days unless the House and Senate vote to allow a 30-day emergency declaration. The motion was rejected on a 10-6 party-line vote. No DFLers spoke on the bill; however, opponents previously said the status quo allows decisions to be made on short notice and going through the legislative process could be time detrimental.

A companion, SF121, sponsored by Sen. Paul Utke (R-Park Rapids), awaits action by the Senate State Government Finance and Policy and Elections Committee.

Judiciary Panel Hears Four Police Reform Bills

On April 13, the House Judiciary Committee considered four police reform and accountability proposals, approving three and hearing the fourth for informational purposes only. Each bill drew opposition from Republicans, who said the proposals would unduly impede police officers from safely performing their duties and protecting the public. Here are accounts of the four bills:

Creating civilian oversight of law enforcement

Sponsored by Rep. Aisha Gomez (D-Minneapolis), HF640 would modify the Peace Officer Discipline Procedures Act to permit local units of government with more than 50 officers — about 40 agencies in Minnesota — to establish law enforcement citizen oversight councils.

Expedited release of deadly force video footage

HF1103, sponsored by Rep. John Thompson (DFL-St. Paul), was approved in March by the House Public Safety and Criminal Justice Reform Finance and Policy Committee, and provisions in the bill are included in that committee’s omnibus bill.

Eliminating police officer civil and criminal liability immunity

Under state and federal law, a police officer’s actions are typically protected by qualified immunity, which limits officers’ criminal liability when exercising their judgment while performing official duties in good faith.

HF1104, also sponsored by Rep. Thompson, would eliminate that qualified immunity.

Limiting the authority for police officers to stop or detain drivers

Another proposal, which has not yet been officially introduced, would limit peace officers’ authority to stop or detain drivers for certain motor vehicle equipment violations.

Rep. Kelly Moller (DFL-Shoreview) and Rep. Cedrick Frazier (DFL-New Hope) developed the language.

Senate Majority Leader Paul Gazelka also announced the Senate would hold fact-finding hearings and receive public input on police reform and accountability within two weeks — but would not promise that specific legislation will be heard in those meetings. Passing budget bills before the Legislature adjourns by May 17 is his top priority, he said.

House $1 Billion Bonding Proposal

The proposed House omnibus capital investment bill contains $1.03 billion in bonding proposals, almost all of them funded by either appropriation or general obligation bonds, with a small amount of other bonds and General Fund money. The largest dollar item in the bill is $300 million in redevelopment appropriations bonds for Department of Employment and Economic Development grants to the cities of Minneapolis ($200 million) and St. Paul ($100 million). Those bonds would be earmarked for the redevelopment of areas adversely affected by civil unrest in May and June 2020.

Another large provision would be for the Minnesota Housing Finance Authority — $300 million in bonding for public housing rehabilitation and emergency shelter facilities. Roads, bridges and rail lines are the focus of $77.5 million in bonds earmarked for the Department of Transportation, including $30 million for local bridge replacement and rehabilitation, and $25.5 million for intercity passenger rail projects. See a complete list of the House bonding proposal.

Senate Omnibus Tax Bill Summary

Senate Republicans unveiled their Omnibus Tax Bill this week for committee action on Friday. SF961 (Carla Nelson, R-Rochester) proposes to align Minnesota tax provisions more closely with provisions passed at the federal level, provide changes to income and corporate franchise taxes, amend certain sales and use taxes, modify property tax provisions, and scores of other proposed tax changes.

Highlights of the Senate Republican Omnibus Tax Bill include:

Tax relief to Minnesota employers who accepted Paycheck Protection Program (PPP) forgivable loans.
Tax relief for workers who accepted unemployment compensation during the COVID-19 pandemic.
Temporary tax credit for brewers, liquor retailers, and wholesalers who were affected by the COVID-19 pandemic.
Reducing the property tax rate for low-income rental housing (4d classification).
A licensed in-home child care provider property tax credit.
Sales tax exemption for materials, supplies, and equipment restaurants used related to COVID-19.
Systematically lowering June accelerated sales tax payments until the percentage is zero.
Reducing the state general levy for commercial/industrial property.
Increasing the market value exclusion on commercial-industrial property subject to the state general tax, from the first $100,000 of market value to the first $150,000 of market value.
Clarifying the school fundraising sales tax exemption.
Extending Minnesota’s “Angel” tax credit.
Modifying partnership audits.
Clarifying Section 179 expensing conformity.
Providing Tax Increment Financing modifications for several cities.
Authorizing numerous cities to adopt a local option sales tax to pay for specific projects.
Requiring the commissioner of revenue to establish a program to issue private letter rulings to taxpayers to provide guidance on how the commissioner will apply tax laws to specific situations, transactions or arrangements that apply to the taxpayer.