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CapWatch:
April 29, 2024

CapWatch - Larkin Hoffman Public Affairs

Minnesota Update

Final Weeks Ahead

The Legislature observed a short break for Passover and returned to work last Wednesday to continue work on budget and policy bills, as well as capital investment and other priorities still moving through the legislative process. Many conference committees have been named and have either met or are scheduled to meet to resolve any differences in language between the House of Representatives and Senate. 

Senator’s Arrest Creates Uncertainty Over Last Month of Session

Early last week, news broke that Sen. Nicole Mitchell (DFL-Woodbury) had been arrested in Detroit Lakes, Minnesota and charged with first-degree felony burglary on suspicion of breaking into her stepmother’s house Monday to retrieve sentimental items related to her late father. The arrest, and Sen. Mitchell’s subsequent absence from the Senate last week, raised significant questions as to how the Senate DFL Caucus, with its 34-33 majority, would be able to navigate the final weeks of the legislative session.

When the Senate returned from the Passover recess on Wednesday afternoon, Senate Republicans quickly filed an ethics complaint and brought a floor motion seeking to begin the expulsion process. While the motion failed on a 33-33 vote, most capitol insiders expect the ethics complaint to be central stage for the immediate future. Further, with all supplemental appropriation and tax bills, final policy bills, and the biennial capital investment package yet to receive final votes, it remains uncertain as to how the Senate will be able to conduct business as it moves towards the May 20, 2024 deadline to adjourn.

Omnibus Bills

The House of Representatives and Senate continue to work on both the omnibus budget and policy bills, with many of them in conference committee to resolve differences in language. Most of the omnibus appropriation bills still need to be passed by the House of Representatives and Senate before heading to conference committee. There is a significant amount of work to do with only three weeks left of the legislative session.

Finance Bills Merged in Committee

Late last week the House Ways and Means Committee merged eight different finance omnibus bills into three larger omnibus bills to expedite the process of reconciling and passing them.

The new bills include:

There was some concern expressed in committee over the Veterans bill being merged with the State and Local Government bill because generally the Veterans bill is non-controversial and receives a unanimous vote. Additional merging of omnibus bills are expected to happen, to account for the differing Senate committee structure.

House Vote Expected Monday on Firearms Bills

Two separate firearms bills are expected to receive a vote in the House of Representatives on Monday. H.F. 4300, sponsored by Rep. Baker-Finn (DFL-Roseville), and H.F. 601, sponsored by Rep. Her (DFL-St. Paul), will be voted on by the full House of Representatives and sent to the Senate. H.F. 4300 would expand existing laws on firearm storage to specify that a person must either store a firearm unloaded and equipped with a locking device or store the firearm in a storage unit. H.F. 601 would require lost and stolen firearms to be reported promptly to law enforcement.

Important Date to Remember      

May 20, 2024         Deadline to Adjourn Legislative Session

Federal Update

House Could Consider Bill to Codify Campus Antisemitism Definition

As protests over the war in Gaza spark on college campuses across the country, House lawmakers plan to consider a bill this week that would codify a definition of antisemitism to apply to federally funded education programs. The bill arises from a long-running debate about when criticism of Israel crosses over to antisemitic rhetoric. The bipartisan legislation is set to be taken up by the House Rules Committee on Monday. The measure (HR 6090), sponsored by Rep. Mike Lawler, R-N.Y., has 30 Republican and 12 Democratic co-sponsors and would codify the International Holocaust Remembrance Alliance’s (IHRA) definition of antisemitism to determine whether there has been a violation of the 1964 Civil Rights Act’s Title VI prohibition on discrimination based on an individual’s race or national origin. The definition states, “Antisemitism is a certain perception of Jews, which may be expressed as hatred toward Jews. Rhetorical and physical manifestations of antisemitism are directed toward Jewish or non-Jewish individuals and/or their property, toward Jewish community institutions and religious facilities.”

CEO to Testify on Change Healthcare Hack

Lawmakers will have the chance in back-to-back hearings to question the company’s CEO at the center of the Change Healthcare hack. Andrew Witty, CEO of UnitedHealth Group Inc., testifies to the Senate Finance Committee on Wednesday morning and to the House Energy and Commerce Oversight and Investigations Subcommittee in the afternoon. Much of the criticism on Capitol Hill following the hack — which disrupted claims processing for thousands of healthcare providers for several weeks — has focused on the size of UnitedHealth Group, the parent company of Change Healthcare.

In an Energy and Commerce subcommittee hearing earlier this month, members didn’t arrive at any potential solutions for preventing future cyberattacks on healthcare entities. The top Democrat on the Health subcommittee, Rep. Anna G. Eshoo of California, said the hack “deserves a strong response of the Congress.” Senate Finance Chair Ron Wyden, D-OR., has called for federally required cybersecurity standards for the healthcare industry. UnitedHealth — which acquired Change Healthcare in 2022 — is one of the largest healthcare companies in the U.S. and routinely acquires physician practices, pharmacy and care delivery companies, and other healthcare interests. In 2023, it reported $22 billion in profits.

On the Radar: FAA Compromise Readied

House and Senate negotiators have reached an agreement on a long-awaited Federal Aviation Administration reauthorization bill, with plans under way to clear it before the May 10 deadline. Senators are expected to take up the compromise text as soon as this week using the House-passed FAA reauthorization bill (HR 3935) as a vehicle. However, sources familiar with the negotiations said some of the most controversial issues, like adding flight slots to Ronald Reagan Washington National Airport and raising the pilot retirement age, may be rehashed via amendments on the Senate floor. The breakthrough is the product of House and Senate negotiations starting just after the Senate Commerce, Science, and Transportation Committee reported out its FAA bill (S 1939) in February. Senators began bicameral discussions before the Senate FAA bill went to the floor, sidestepping a formal conference.

According to sources familiar with discussions, Senate leadership is hoping to pass the bill by early next week, with the House set up for a vote on final passage on May 9. Without a presidential signature on the bill before the deadline, the FAA wouldn’t be able to collect revenue or spend money, resulting in a partial agency shutdown, furloughed employees, and stalled airport projects.