After weeks of negotiations, speculation, and a late night caucus, Governor Mark Dayton called the Special Session for today at 10 a.m. The six bills on the approved agenda are the three budget bills that Dayton vetoed at the close of session a month ago: Agriculture/Environment, Jobs/Energy, and Education; as well as the Legacy, Bonding and Revisors bills that didn’t make it through both chambers before the clock struck midnight on the last day of the regular legislative session.
Following House Speaker Kurt Daudt’s (R-Crown) urging, on Monday the Governor announced that he was dropping his battle with Republicans over a new law allowing counties to bypass the State Auditor and hire private accountants so lawmakers can finish the budget and prevent a July 1 partial government shutdown. In the same breath, he said he had several other demands that needed to be met before he would call a special session.
Dayton said he wanted three changes to the jobs bill: $5 million for programs that help people with disabilities find jobs, striking language regarding changes to the way utility customers are credited for producing solar or wind energy on their utility bills, and language lowering electricity rates for some major trade-exposed industries such as mining and forest products in northeastern Minnesota.
He also said he’d like the Legislature to reconsider and approve more funding for rural broadband, facilities for sex offenders, and rail grade crossing safety, along with a Destination Medical Center spending formula fix to give Rochester the flexibility to use its local sales tax for DMC.
The Governor and House Republicans came to terms late Tuesday on the jobs and energy bill, agreeing to include $5 million to assist disabled Minnesotans, adding a provision to help mining and paper companies with energy costs, and the tax clarification provision for the Destination Medical Center in Rochester.
Dayton insisted that the caucuses agree to no amendments, saying that “self-serving amendments and grandstanding are not acceptable.” The caucuses met Thursday evening and Dayton addressed the Senate Democrats. Bakk said he still doesn’t know if there are enough Senate DFL votes to pass the reworked budget bills. He needed Republicans’ help to pass the first version of the agriculture and environment bill, and many Democrats remain opposed to that bill because of what they view as a weakening of environmental protections.
Daudt said he is confident he has the votes to pass the budget bills in the House.
Sales Tax Change
The Legislature is set to delay by a year a previously approved sales tax exemption for cities, counties and other government entities that team up to provide services through “joint powers” arrangements.
Local officials say the change, which is part of an education bill that will come up in a special session, came out of nowhere in May and runs contrary to the state’s demands they deliver services more efficiently.
In 2013, the Legislature passed a law that exempted cities and counties from paying state sales taxes on certain equipment, computers and office supplies. But lawmakers had to clarify the law in 2014 to explicitly include transactions involving joint powers arrangements in which police, fire and other services are collaboratively provided across municipal boundaries.
The tax exemption was set to kick in this January, but the bill lawmakers will vote on pushes it back to 2017. The delay cleared the Legislature on the last day of session, but Dayton vetoed the education funding bill.
Speaker Daudt said he doesn’t anticipate changing the education budget bill to address the sales tax issue. Daudt said the idea of a delay originated with majority Senate Democrats in the regular session’s waning hours as leaders worked to finalize a budget. Majority Leader Bakk has said leaders needed to find extra money because Republicans were insistent on leaving $1 billion aside for the 2016 session. It was put in the education bill because a separate tax bill failed to move.
In The Weeds
Manny Munson-Regala, Assistant Commissioner of the Minnesota Department of Health is stepping over to run the Cottage Grove-based cannabis manufacturer, LeafLine Labs. The Office of Medical Cannabis was responsible for day-to-day operation of the program but its Director, Michelle Larson, was beneath Munson-Regala in the agency’s hierarchy.
Qualifying patients are just a few weeks away from being able to buy cannabis from LeafLine and one other approved manufacturer.
Munson-Regala’s latest move between the public and private sector involves one of the most controversial recent state initiatives, and his exit is raising questions about independence. Sen. Warren Limmer (R-Maple Grove) who opposed the medical marijuana legalization measure, voiced concerns. State Sen. John Marty, DFL-Roseville, said Munson-Regala’s new job should give the public pause. Marty said he plans to again introduce legislation aimed at former government officials moving to the private sector who then lobby on behalf of their new employer.
Munson-Regala also said he played no direct role in selecting LeafLine as a one of the state’s two cannabis providers last fall, and hasn’t had a direct role in regulating the medical cannabis industry since then. The Health Department says he’s been relieved of his responsibilities related to the medical cannabis program until he formally leaves the Department. He’ll join LeafLine in early July.
