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CapWatch:
February 19, 2024

CapWatch - Larkin Hoffman Public Affairs

Minnesota Update

First Week of 2024 Session

Much like last year, the 2024 legislative session started with several substantive legislative proposals moving through the committee process quickly. Most notably, legislation attempting to address controversy over the authorities of school resource officers (SROs) and a proposal seeking to fix mistakes in last year’s omnibus tax bill were both heard and passed out of committee in the first week. We anticipate committee agendas will remain full as legislators must advance all policy legislation prior to the March 22, 2024 committee deadline.

It was also announced last week that the February forecast will be released on February 28, 2024. This will be an update to the forecast that was released in early December and will determine what money is available for lawmakers to work with this legislative session.

Reexamination of 2023 Changes to SRO Authority

Introduced by Cedrick Frazier (DFL-New Hope), H.F. 3489 has been presented as an attempt to provide clarity around changes to the statute governing SROs that was passed last session. Specifically, the 2023 legislation amended education statutes on corporal punishment to prohibit employees or agents of a school district from using certain holds, including prone restraints, except when it was necessary, to restrain a student to prevent bodily harm or death to the student or another.

During the interim, questions were raised as to how these changes related to state law authorizing the reasonable use of force by peace officers, teachers, school officials, and other people under the circumstances. In response, more than 40 police departments pulled officers from participating school districts.  H.F. 3489 would remove SROs from the category of an “agent of the school” and require the Peace Officer Standards and Training Board to consult with stakeholders to develop uniform training standards for SROs throughout the state.

In committee, the proposal has drawn criticism from both sides of the political spectrum, but still moved out of the House Education Policy Committee before being heard in the House Public Safety Committee. The bill was laid on the table in Public Safety and awaits further action.  The Senate companion, S.F. 3534 (Westlin, DFL-Plymouth) was also heard in the Senate Education Policy Committee before being referred to the Senate Judiciary Committee.

Technical “Tax Bill Fix”

Introduced by Rep. Aisha Gomez (DFL-Minneapolis), H.F. 2757 makes several technical changes to state tax law seeking to address errors in the 2023 omnibus tax bill. Most notably, the 2023 omnibus bill mistakenly utilized an out-of-date amount for the standard deduction. If not addressed, this mistake could cost taxpayers $352 million over the next two years. The error won’t affect 2023 filers but will impact filers in the coming two years.

The bill that is currently moving through the legislature would adjust the standard deduction amounts for tax year 2023, align the definition of “Tribal Nation” in statewide local housing aid with the wording in the Tribal Nation aid program, and allow a 0.625% local sales and use tax authorization for Beltrami County approved by voters in November.

In committee, multiple Republican legislators raised concerns that the bill didn’t include language addressing an unintentional reduction in the deduction for business’ net loss, reducing them from 80% to 70% of taxable net income. Rep. Gomez stated that she intended to address that issue in a future proposal.

HF 2725 is scheduled to be voted on by the House of Representatives today.

Minnesota Debt Fairness Act

Last week Gov. Tim Walz and Attorney General Keith Ellison announced the Minnesota Debt Fairness Act, a proposal aimed at helping consumers overcome consumer and medical debt. The bill hasn’t yet been formally introduced at the legislature, but a few of larger ideas of the proposal include:

Sen. Liz Boldon (DFL-Rochester) and Rep. Liz Reyer (DFL-Eagan) will serve as the proposal’s chief authors.

Special Election Announced

Gov. Walz announced that the special election in House District 27B to fill former Rep. Kurt Daudt’s seat, will be held on Tuesday, March 29, 2024.  A former Speaker of the House, Rep. Daudt retired effective the day before the 2024 legislative session began. If necessary, February 29 will be the special primary election to nominate the candidate for office.

Important Dates to Remember

February 12, 2024                        2024 Legislative Session Begins

February 28, 2024                        February Forecast Released

March 22, 2024                             First and Second Deadline

March 27, 2024 at 5pm                Easter Recess Begins

April 2, 2024 at 12pm                  Easter Recess Ends

April 9, 2024 at 5pm                    Eid Recess Begins

April 11, 2024 at 12pm                Eid Recess Ends

April 19, 2024                               Third Deadline

April 22, 2024                               Passover Recess Begins

April 24, 2024 at 12pm                Passover Recess Ends

May 20, 2024                                Deadline to Adjourn Legislative Session