Special Session?

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Minnesota Governor Mark Dayton spent the Memorial Day holiday weekend reviewing the details of the spending and tax bills the Legislature delivered for his signature at the conclusion of the 2016 session.

Dayton signed the $182 million supplemental budget bill on Wednesday. The bill includes three of Dayton’s spending priorities. It provides $25 million to begin statewide, voluntary pre-kindergarten, $35 million to further expand rural broadband, and $35 million for initiatives aimed at addressing racial economic disparities. Workforce housing, school support staff and water infrastructure were also addressed.

In a press conference the same day, Dayton laid out a lengthy wish list to state lawmakers that he said must be met before he will agree to sign into law a $259 million tax cut package or call the Legislature into special session. The tax bill contains new tax credits for low-income people and for college graduates carrying loan debt. It also has a property tax exemption for a proposed soccer stadium in St. Paul and breaks to entice a wood siding manufacturer to the Iron Range.

Dayton’s five-page letter to House and Senate leadership included requested funding for metropolitan transit, additional higher education spending and specific additions to the $1 billion bonding bill crafted in the session’s final minutes. The Governor also wants lawmakers to fix a drafting error in a gambling provision included in the omnibus tax bill that would result in the loss of $102 million to the state’s Minnesota Vikings stadium fund, and to restore an $800,000 tax exemption for the Minnesota State High School League. Beginning this fall, low-income student-athletes would not have been able to receive grants to offset the cost of playing sports, because legislators did not reauthorize a sales tax exemption on tickets for high school sporting events.

House Speaker Kurt Daudt (R-Crown) responded that he is willing to be flexible as long as Dayton is equally reasonable in his demands. The Speaker pledged a tax-bill fix in an attempt to gain Dayton’s signature. Dayton says he’s holding out hope for a comprehensive deal that addresses all of his priorities.

House Minority Leader Paul Thissen (DFL-Minneapolis) said he is supportive of Dayton’s conditions for a special session. However, Senate Minority Leader David Hann (R-Eden Prairie) said Dayton should call a special session to pass a bonding/infrastructure bill alone. He added that he cannot agree to the Governor’s multi-page list of non-negotiable spending demands.

Dayton has until Monday to act on the remaining bills from the 2016 session. He indicated Thursday that he will veto the tax bill if a special session can’t be agreed to.

Other laws

Dayton signed a bill into law Tuesday that regulates the use of police body cameras. The measure, passed in the final weekend of the 2016 session, will make most of the video recordings inaccessible to the public. Lawmakers removed a provision to allow law enforcement officers to review recordings before writing incident reports. Dayton said he wouldn’t sign the bill unless that change was made.

In other action, Gov. Dayton vetoed the omnibus pension bill. Dayton explained in his veto message that the bill fell short on overall sustainability goals and would have held current retirees solely responsible for reducing plan liabilities.

Dayton signed the Legislative-Citizens Commission on Minnesota’s Resources appropriations bill but he line-item vetoed seven projects. He criticized the Legislature for not working more closely with the LCCMR Board on recommended projects.

Dayton also signed 19 smaller bills, including the ratification of state employee contracts, creation of a child care affordability task force, and increased penalties for interfering with the scene of a death.

Moose Tracks

The U.S. Fish and Wildlife Service announced Thursday that Minnesota’s struggling moose population may warrant protection under the Endangered Species Act.

The USFWS now will undertake a status review before deciding whether to formally request to list the moose as threatened or endangered under the law. Meanwhile researchers are trying to identify what is causing Minnesota’s moose to die at such an alarming rate. Some of the theories are infection, parasites, and climate change.

The Minnesota Department of Natural Resources has not taken an official position on the proposal.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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