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State Representative Ernie Leidiger

317 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4282

For more information contact: House GOP Communications 651-296-5520

Posted: 2012-02-13 00:00:00
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NEWS COLUMN

Legislative Update


St. Paul – Thank you to everyone who attended last week’s precinct caucuses and Carver County town hall meetings. The turnout at both was encouraging, and the discussion topics were largely the same: job growth, economic recovery, and reforming government.

In addition to our recent projected state surplus and a push to hold the line on spending, attendees at the caucuses were supportive of a voter ID requirement and right-to-work legislation (“employment freedom”). Those who were present at the town hall meetings were concerned about high business taxes, redistricting (which will be announced Feb. 21 at 1:00 p.m.), and the care of our state lakes.

I look forward to updating you on these matters once they being to move through the legislative process in the coming weeks.

Child Care Assistance Funds Protection

The House passed highly supported legislation last week that would protect child care assistance funds from the automatic withdrawal of union dues or fees prior to the providers receiving them.

Numerous child care providers came out in support of (and none against) House File 1766 to articulate their concerns that, should unionization occur and the funds be automatically deducted, they would have to cease enrolling child care assistance families or to make severe cuts to their child care programs.

As you may recall, Governor Dayton’s recent executive order called for a vote to unionize all independent, in-home child care providers. The vote, however, would only allow those who receive state monies to participate in this monumental decision. The executive branch and the unions refused to release further information on the details of unionization. In response, this bill preempts what has happened in other states after such executive orders have occurred, namely the automatic deduction of dues and fees.

All in all House File 1766 is a simple bill. We just want to allow these small business owners the freedom to decide how they want to pay for potential union dues or fees. Privately owned businesses should have that freedom.

Tax Reform

The main thrust of our Reform 2.0 plan last week was tax reform. We heard three tax bills in committee that would generate a more competitive business climate in Minnesota.

Small- to medium-sized businesses have either moved to border states or continue to bear the weight of high property taxes. Representative Greg Davids (R-Preston) sponsors House File 1914 that would exclude the first $150,000 of a commercial/industrial property’s value from the statewide property tax, which would take effect for property taxes payable in 2013. In addition, it would phase out the business property tax over 12 years. This business property tax relief legislation would affect businesses of all sizes; however, the main relief would be experienced by our economic catalysts – small- and medium-sized businesses.

The Jobs Committee discussed the enhancement of the Angel Investor Tax Credit, which matches start-up businesses with people looking to invest their money. If we enhance this tax credit, we can spur entrepreneurship and economic growth.

Representative Jenifer Loon (R-Eden Prairie) proposed the creation of a Tax Reform Action Commission, a group responsible for studying the entire tax system in order to find places for reform and simplification. House File 1822 has received support from the Minnesota Chamber of Commerce and the Minnesota Business Partnership.

I look forward to following the progression of these bills. They’re particularly imperative in light of the fact that the Tax Foundation recently ranked Minnesota 45/50 on their business tax climate index.

Governor Dayton Vetoes Pro-business Bills

Last week, Governor Dayton vetoed four pro-business lawsuit abuse reforms that were supported by 45 chambers of commerce, several trade associations, and local businesses that together represent more than 67,000 employers in Minnesota. The bills deal with tort reform, and they are designed to sensibly help reduce costs to job providers and encourage economic and job growth.

Our lawsuit abuse system is known as unfriendly to our local businesses, especially our small companies. That is why one of our bills, Senate File 149, would have made the small claims court (“conciliation court”) process much easier for small businesses to navigate. These small businesses are our economic catalysts that cannot afford full time bookkeepers and assistants – much less attorneys – but manage to thrive and grow jobs in our local economies. What is the motivation to stay in Minnesota if we do not support them here?

Governor Dayton was wrong when he called the business owners (our employers and job creators) who supported the tort reforms "wrongdoers”. He is not supporting initiatives that spur economic growth in our state designed to lift us all, focusing instead on his special interests. I ask that he work with the Legislature instead of thwarting common sense legislation.

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Representative Leidger can be reached by phone at 651-296-4282. He can also be contacted via e-mail at rep.ernie.leidiger@house.mn, or via U.S. Mail at 415 State Office Building, St. Paul, MN 55155. Rep. Leidiger also encourages constituents to sign up for his email updates at www.house.mn/34a.

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