Minnesota Memo - Minnesota Legislative Update

Policy

Week three of Minnesota’s legislative session wraps up today. The session got off to an interesting start. While the Senate is operating under a power-sharing agreement–which may change, as a Jan. 28 special election for the vacant District 60 Senate seat resulted in a one-seat Democratic majority–a Minnesota Supreme Court ruling is forcing the House of Representatives to hit the reset button.

The November 2024 election concluded that the House would be split 67-67, forcing the Republicans and Democrats to come to a power-sharing agreement, which they did. Then, just weeks before the session, one Democratic seat became vacant, giving Republicans a one-seat majority. Republicans then chose to not adhere to the previously established power-sharing agreement.

While Republicans gained the majority until a special election could be held for the open seat, Democrats requested that a new power sharing agreement be developed in the meantime. Despite that, Republicans acted as the majority on the first day of legislative session, and Democrats refused to enter the Capitol without a power-sharing agreement in place. Since day one of session, House Democrats have yet to step foot in the Capitol.

The Supreme Court decision on Friday, Jan. 24, ruled that there was no quorum present, ending the dispute in the House. With 67 Republicans and zero Democrats present, Secretary of State Steve Simon–acting as presiding officer–ruled a quorum was not present. A quorum of 68 members is needed to conduct official House business. Arguing that 67 is a quorum because, with the District 40B seat vacant, there are currently only 133 House members, Republican members went ahead and selected Rep. Lisa Demuth (R-Cold Spring) as speaker.

Since then, House committee hearings have taken place with only Republicans present, and Democratic members have continued to avoid the Capitol in an effort to deny quorum.

The court decision voids any work done thus far in session.

Secretary Simon has commenced a floor session each day of week three and ruled that, once again, a quorum has not been present with the absentee Democrats. There are two possible paths forward in the House: Republicans can negotiate a power-sharing agreement and everyone can get back to work at the Capitol; or, they can refuse, and the Democrats have signaled that they will continue to hold out until an early March special election to fill the vacant seat. The bottom line is that Minnesota needs a budget by June 30 or the government shuts down.

Despite that, we are busy tracking proposed bills that may impact rural communities.

Below are the bills we are monitoring so far.

We welcome your input. Feel free to be in touch about these or any other bills you feel are important to rural communities. I can be reached at [email protected], or 507.581.8545.

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Energy and environment

SF441 - Support: This bill, brought by Sen. Coleman, would create a temporary income tax credit for the purchase and installation of solar energy systems. This credit would apply to classifications of business property and homesteads, including agricultural homesteads. This bill was introduced and referred to the Committee on Taxes.

SF572 - Monitor: This bill, brought by Sen. Mathews, would allow hydroelectric facilities of any capacity and age to qualify under the renewable energy standard; delay the deadline by three years for electric utilities to meet renewable, solar, or carbon-free standards; prohibit the demolition of electric generating plants powered by fossil fuels; make it a policy of the state to support the development and deployment of carbon capture and sequestration technologies; and expand the sales tax exemption for residential heating fuels and electricity.

Notably, this bill also seeks to lift the nuclear moratorium. The intent of this bill is to allow for more diversification of energy generation in the state, through expanding what is considered a “qualifying energy technology,” and to additionally allow more time for electric utilities to meet various state energy standards. Further, this proposed bill would not allow for the demolition of fossil fuel powered electric generating plants, make it a policy of the state to support carbon capture and sequestration technologies and expand exemptions for residential heating fuels and electricity. This bill was introduced and referred to the Committee on Energy, Utilities, Environment, and Climate.

SF733 - Support: This bill, brought by Sen. Kunesh, lays out the responsibilities for abandoning a pipeline, including a timeline and land restoration, and requires the approval of an abandonment plan prior to abandonment, which includes mandatory public hearings. This would ensure proper decommissioning of a pipeline and make sure that landowners do not get stuck removing pipeline infrastructure. This bill was introduced and referred to the Committee on Energy, Utilities, Environment, and Climate.

Economic and community development

Senate File (SF) 29, SF217 & SF478 - Support: Seeking the same outcome, these bills, brought by Sens. Nelson and Housley respectively, are looking to appropriate $25,000,000 from the bond proceeds fund to the commissioner of transportation for the small cities assistance program. This program supplies road aid to smaller Minnesota cities; eligibility is limited to cities that are not receiving municipal state-aid street funds, which generally means that the city must have a population of under 5,000. This bill was introduced and referred to the Committee on Capital Investment.