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HomeMy WebLinkAbout2018-05-29 PACKET 06.03. Legislative Update – Economic Development Authority – May 25 MIF and JCF - Vetoed  Included in the omnibus supplemental finance bill - HF 4099/SF 3656 – Chapter 201  Funding for the JCF was cut from $8.5 million to $1.5 million for FY 19 in early versions of the bill. The final version restored the funding $7 million for FY 19.  Similarly, early version of the bill cut funding to the Minnesota Investment Fund/North Star Opportunity and Development Account from $12.5 million to $7.5 million for FY 19. The final version restored funding levels for this account to $12.5 million.  Presented to governor on May 21. He vetoed the bill on May 23. At this point these programs are unfunded. Omnibus Tax Bill - Vetoed  First omnibus tax bill (HF 4385) was vetoed by the Governor on May 17.  Second omnibus tax bill – HF 947 – was passed by both the Senate and the House. It is an education finance bill that was amended to include most of the first omnibus tax bill. o Known as Chapter 205  HF 947 was also amended to include additional funding for schools, as demanded by the governor in his veto letter.  Similar to the original vetoed omnibus tax bill, the amended second tax bill focuses on personal income and corporate income tax changes needed to conform with the federal Tax Cuts and Jobs Act of 2017. The bill also offsets personal and corporate income tax increases that would otherwise occur under the conformity changes.  Items of interest for cities in the bill: o Includes modifications to the existing statutory prohibition on local income and sales taxes to specify that the prohibition also covers excise taxes and fees of food and containers. o A clarification that cities and towns may appropriate funds for historical societies in the respective city or town. Under current law, a city or town can only appropriate funds for a county historical society. o A state general property tax abatement for qualifying natural gas line extensions in unserved areas. o Several city-specific provisions  The governor vetoed the bill on May 23. Senate Bonding Bill – No decision  Includes: o Greater Minnesota Business Development Public Infrastructure (BDPI) – $8 million o Transportation Economic Development Infrastructure Program (TEDI) – $4 million o Innovative Business Development Infrastructure (IBDPI) – $1 million  As of May 24, the governor has not made a decision on the bonding bill. He has until June 4 to make a decision. His options are: sign the bill, veto the bill in its entirety, or sign the bill with line-item vetoes. Line-item vetoes are restricted to budgetary items and not policy language. 3M Settlement Account  Language to create an account called the Water Quality and Sustainability Account for the money from the 3M settlement was included in SF 3656 (Chapter 201), the omnibus supplemental budget bill, which is the same bill that contained funding for JCF and MIF. o House and Senate passed the bill on May 19 and 20. o Presented to the governor on May 21 and vetoed on May 23.  This account is also set up in a standalone bill, HF 3660 (Chapter 204). The bill was passed by both the Senate and the House and presented to the governor on May 21. We are not sure if he will sign or veto the bill.