Dear Neighbor,
This week’s theme at the Capitol remained getting bills through at least initial stages of the committee process so they remain viable once the first deadline arrives in early March. Before we get to some of those, there is progress to report on some that are further along in the Legislature.
Legislation to facilitate the construction of a natural gas-fired power plant to replace two coal-fired units scheduled for shutdown at Xcel Energy’s complex in Becker also is advancing. The full House (H.F. 113) and Senate have each approved bills and we should be able to reconcile differences soon so we can present legislation to the governor. The governor has said he will sign this legislation.
The House Ways and Means Committee, which I chair, this week passed a wetland replacement bill (H.F. 434) week so it can head to the floor for a vote. State law currently states any road project requires a contractor to either replace lost wetland on their own or to purchase wetland credits from a wetland bank. The funding to allow for these transactions has run dry, so the bill provides $5 million in emergency funding so the 2017 road construction season can start in a timely manner. I have been active in working to fast-track this bill through the process and we are making progress which is desperately needed by local units of government.
Other bills I have authored are making preliminary committee process, including a bill (H.F 610) to provide statewide consistency for farmers looking to qualify for ag homestead tax treatment. This bill would allow agricultural land and other related property to qualify for ag homestead property tax treatment when the property is owned by a trust. Setting up two revocable trusts is a common estate tax planning technique used by couples to avoid probate and maximize their tax exemption, but doing this now prevents them from getting the benefits of ag homestead property tax treatment. Different counties around the state are interpreting the current law differently, so this is needed to clear up confusion as well. This bill is one of the Minnesota Bar Association's priorities this year.
Another bill (H.F. 923) of mine would provide tort reform to encourage settlements instead of going to court. A local example could serve as Exhibit A for why this is necessary. Some years ago the Saint Cloud Library was sued by an employee under a statute that required the loser to pay all attorney fees. The library made an early offer of settlement that was rejected. The plaintiff was eventually awarded $10,000 (less than the settlement offer), but the attorney fees were $91,000. Attorneys have an incentive in some cases to continue fighting instead of settling. This bill would conform Minnesota law to what is done at the federal level, and under what is called Rule 68 cap attorney fees at the amount incurred up to the point an offer of settlement is made if any eventual judgement is equal or less than the settlement offer. This legislation is supported by the League of Minnesota Cities and a large number of business groups.
On a final note, the House this week formally adopted its permanent rules for the biennium by a wide, bipartisan vote of 105-14. The rules guide how bills move, how debate proceeds, and how the House handles ethical and other issues.
Look for more news soon. The next state economic and budget forecast will be received in the next few weeks, at which point the House’s work on formulating a new two-year state budget will begin in earnest.
Sincerely,
Jim