Post-Session Review

Dear Neighbors,
The legislature adjourned late in the evening on May 16
th
, closing the books on the 2013-14
biennium at the earliest date in decades. The two largest bills that the legislature had this year were
both passed on the last day: the bonding and supplemental budget bills. Although those were the most
high-profile bills this year, a great deal of important work was done on a variety of issues. Now that
some time has passed since the session adjourned, I wanted to give you an update on what happened in
the Capitol this session.
In contrast to the $627 million budget deficit that we faced at the beginning of the last session,
we began this session with a $1.2 billion surplus. That change is due both to improved economic
growth, and the policies that we put into place last year to ensure a stable and balanced budget. We
were able to supplement those policies by providing more than half a billion dollars in targeted middle-
class tax relief, and by putting an additional $150 million into the state budget reserves. Most
importantly, the budget is projected to still have a positive balance of over $600 million. The bonding
bill included funding for two important projects in our community, the 77
th
Street Underpass in Richfield
and the Minnesota Valley State Trail in Bloomington, in addition to other important construction
projects that will create jobs and boost our state infrastructure.
With such a short session (12 weeks), a lot of work was done very quickly, including changes to
health and education policy, regulations regarding liquor in Minnesota, voter registration, the minimum
wage, and policies affecting women in the workplace, just to name a few. Ill touch on some topics here,
but please feel free to contact my office if you have additional questions at (651) 297-8061 or
sen.melissa.wiklund@senate.mn. Id also encourage you to like my Facebook page Senator Melissa
Halvorson Wiklund or follow me on Twitter (@mhwiklund) for more frequent updates.
Capital Investment
The second year of the biennium
traditionally focuses on a large capital
investment, or bonding, bill. With interest rates
still relatively low, and many deserving projects
all over the state, Im glad we were able to pass
a bill that makes wise and needed investments
in our state. The final product totaled
approximately $846 million in General
Obligation bonds, with another $200 million in
one-time cash leveraged from the states
budget surplus. It is estimated that this bill will
create more than 28,000 jobs and will add $3.4
billion to Minnesotas GDP.
Some highlights of the bonding bill
include $279 million for projects for the U of M
and MnSCU colleges, more than $100 million
for roads, bridges, and transportation
infrastructure, $100 million for housing, and
$448 million for economic development
projects. I was also the Senate author of two
bonding proposals that were included in the
bill: the 77
th
Street Underpass that will connect
western Richfield with the Mall of America and
the airport, and the Minnesota Valley State Trail
in Bloomington, which will complete a bike and
pedestrian trail connecting Fort Snelling with
the Belle Plaine area.

Commerce
This year, the legislature passed the
Health Insurance Transparency Act. This
legislation encourages competition by
increasing the number of bids school districts
receive from insurance providers to three, and
putting into place a more equitable bidding
process. Additionally, this bill prohibits any
school employee from financially benefiting
from the bidding process. After some concerns
were expressed, the bill was also amended to
better address self-insured school districts (like
Bloomington and Richfield).
A perennial topic of conversation in the
legislature is Sunday liquor sales. Although
some changes were made to liquor laws in
Minnesota, traditional Sunday sales laws were
left intact. Additionally, changes were made to
allow tap rooms to be open on Sundays, and
homebrewers are now authorized to bring their
products to contests, tastings, and other non-
sale gatherings. Notably for our community,
the Richfield Ice Arena was authorized to sell
beer and wine on-site during games played by
the Minnesota Magic, a junior hockey league
team.
One piece of unfinished business from
this biennium is payday lending reform. The
Senate did pass legislation that would limit the
number of loans that could be taken out in a
year, establish a waiting period, and cap
interest rates; however time ran out before the
House was able to do so. Im hopeful that this
work will continue.

E-12 Education
Serving on the Education policy and
finance committees, I have had the opportunity
to be involved in some very intriguing work this
year. We made significant investments in our
schools last year, and put them on much better
financial footing. This year, we built on that
progress, and made significant policy changes
as well.
The Supplemental Budget bill included
an additional $54 million for Minnesota schools.
$23.4 million of that is used to increase the
Basic Funding Formula, giving schools an
additional $25 per student. Another highlight
of the Education section is an additional $11
million for early childhood education. This has
been a particular focus of mine in the
legislature, and Im pleased to see these
investments. In particular, the supplemental
budget provides $4.7 million more for Early
Learning Scholarships, $1.8 million for School
Readiness Aid, and $4.7 million for the Early
Childhood Family Education Program. Studies
show that nearly 50% of Minnesota kids are not
prepared to enter kindergarten, and that
children who are not fully ready are 25% more
likely to drop out of school and 60% less likely
to attend college. These investments will
ensure that more Minnesota kids will get
started on a better path.
Additionally, the budget increases
investments in K-12 academic achievement,
including funds for the Minnesota Reading
Corps, and the English Language Learner
Program. Finally, the budget also provides for
free lunches for students who qualify for
reduced-price lunches, and universal and
nutritious breakfasts for all kindergarten
students. The evidence is clear that one of the
best ways students can be prepared for success
in schools is by ensuring that they are not
hungry.
One of the more controversial bills
passed this year was the Safe and Supportive
Schools Act, which seeks to offer a more
comprehensive approach to bullying in
Minnesota schools. The Safe and Supportive
Schools Act defines bullying (and cyber-bullying)
in specific terms, gives students, teachers, and
administrators additional tools to address
bullying, and provides a model policy for school
districts to address bullying while also allowing
districts to establish their own. The bill does
not include curriculum requirements, and does
include protections for all students and their
freedoms of speech. The bill underwent
significant changes as it worked its way through
the legislature, so if you have specific questions,
Id encourage you to get in touch with my
office.
The Omnibus E-12 Education policy bill
also made several changes to how our schools
operate. In particular, reforms were made to
the Minnesota Teacher Licensure Exam (MTLE),
the Adult Standard Diploma, Teacher Evaluation
and Development (TED), charter schools, open
enrollment, and post-secondary enrollment
options.
The reforms to the MTLE will now allow
teacher licensure candidates to attain an
equivalent score on the SAT or ACT Plus Writing
test in lieu of passing the MTLE, and will also
allow some flexibility for non-native English
speakers who provide direct instruction in their
native language (at immersion schools) or world
language instruction. The Teacher Evaluation
and Development reforms will align TED with
QComp in existing state law, and to allow for
districts to develop their evaluation and peer-
review processes.

Health and Human Services
The supplemental budget bill included
additional investments that will support needed
services in Minnesota. In addition to some one-
time investments, this bill included an
additional $1 million per year for Homeless
Youth Act funding to help the more than 2,500
Minnesota children who either sleep on the
street or simply lack a stable place to stay. Also
included was an additional $1.5 million to
provide Safe Harbor services for victims of
sexual assault, and sexual trafficking or
exploitation of children. Additionally, this
budget takes steps to reduce the deficit in the
Health Care Access Fund, which provides health
care services for lower-income Minnesota
families.
A significant portion of the HHS budget
goes towards a 5% rate increase for home- and
community-based service providers and
intermediate care facilities for individuals with
developmental disabilities. 80% of this increase
must go towards compensation for the 90,000
caregivers who work with our most vulnerable
Minnesotans. Im glad we were able to give
these important workers a much-deserved
raise.
Towards the end of the session, we also
passed the Omnibus Health and Human
Services policy bill, which contains several
provisions. Among the most high-profile
aspects were new regulations regarding e-
cigarettes. The final agreement (which I offered
in the conference committee) prohibits using e-
cigarettes in all government-owned buildings,
and schools, as well as MnSCU and U of M
owned buildings. It also allows for local
governments to enact more stringent
regulations regarding sale and licensing. Finally,
this legislation adds tobacco-related devices
and electronic delivery devices to the list of
tobacco products that are illegal to be sold to
minors.
Also passed this year was legislation
regarding Advance Practice Registered Nurses
(APRNs). Current law requires APRNs to enter
into agreements with physicians to manage
patient care, and limits their ability to practice
to their full scope of qualifications. These
agreements can often be difficult to obtain,
particularly in greater Minnesota. Legislation
passed this year, would allow APRNs to practice
without these agreements in most cases.
Late in the session, an agreement was
reached to legalize medical cannabis in
Minnesota. Patients suffering from a
prescribed list of ailments, once certified by a
state-licensed health care practitioner, can be
enrolled in a registry maintained by the
Commissioner of Health, and receive medical
cannabis provided by two in-state
manufacturers and eight distribution centers.
Medical cannabis will be provided in approved
forms that do not require the use of dried
leaves or the plant form, and will be available
beginning on July 1, 2015.
Finally, the Omnibus Health and Human
Services policy bill also included language that
would prohibit minors from using tanning beds,
and would also allow counties to take smoking
status into consideration when making foster
home placement decisions.

Jobs, Labor, and Economic
Development
For the first time since 1998, the
legislature voted to raise the minimum wage in
Minnesota. For most businesses, the minimum
wage will be increased to $8.00/hr in 2014,
$9.00/hr in 2015, and $9.50/hr in 2016.
Beginning in 2018, the minimum wage will also
be annually tied to inflation, to ensure that it
does not lose its buying power. Its estimated
that 357,000 Minnesotans will see their pay go
up as a result of this change. Its also worth
noting that 40% of minimum wage workers are
25 or older, and 60% are women. This increase
will help Minnesota families, and will provide a
real boost to Minnesotas economy by putting
more money in the hands of working
Minnesotans.
The Supplemental Budget also included
substantial investments in economic
development: $2.9 million for the Minnesota
Initiative Foundation, $2.2 million for the
Business Development Grant program,
$500,000 for Small Business Development
Centers, $750,000 for Workforce Development
Grants, and $700,000 for Vocational
Rehabilitation. These are all programs that help
develop business and grow jobs in Minnesota
and have proven to have high returns on
investment.
One of the most noteworthy pieces of
legislation passed this year was the Womens
Economic Security Act (WESA). Although we
have made great strides, women in Minnesota
still make on average 77% of what men make.
Additionally, women face many unique
challenges that have not been addressed by
current law. WESA seeks to address and
remedy those challenges. There are five key
aspects to WESA:
Requires businesses contracting
with the state in excess of
$500,000 to complete a pay
equity plan, and certify that
they are in compliance with
state and federal equal pay
laws.
Provides funds for the
Governors Workforce
Development Council and the
Dept. of Employment and
Economic Development to
assist women in obtaining
employment in nontraditional
occupations, and for women-
owned business development
and female entrepreneurs.
Bans discrimination or
retaliation against an employee
who inquires into or compares
wage information, increases
accommodations for nursing
mothers, and allows individuals
who have quit their job as a
result of documented sexual
assault to be eligible for
unemployment benefits.
Expands unpaid leave for
women who have a child or are
incapacitated as a result of
pregnancy from six to twelve
weeks, expands allowable uses
of sick leave to include caring
for grandchildren, and
providing or receiving
assistance because of sexual
assault, domestic abuse, or
stalking. I was the Chief Senate
Author of the bill to include
caring for grandchildren, and
establishing safety leave for
victims of domestic abuse or
stalking.

Taxes
Thanks to the projected budget surplus,
this year the legislature was able to pass two
bills that will result in significant tax relief for
nearly 2 million Minnesotans.
The first tax bill was largely dedicated to
conforming nearly all Minnesota tax laws to
federal laws. These changes affect more than
650,000 married couples, 125,000 Minnesotans
paying student loans, 26,000 Minnesotans
paying child care expenses, 80,000 Minnesotans
paying mortgage insurance premiums, 30,000
Minnesotans paying for higher education,
60,000 teachers paying for classroom expenses,
and 347,000 lower- and middle-income
Minnesotans who are eligible for an expanded
Working Families Tax Credit. This bill also
increased the states budget reserves, repealed
all three business-to-business taxes, repealed
the gift tax, and eliminated the estate tax rate
bubble that has caused some taxpayers with
the lowest-valued estates to pay the highest tax
rates.
The second tax bill was more focused
on property and sales taxes, and included $45
million in direct property tax refund increases
to 94,000 farmers through the Agricultural
Homestead Market Credit, to 500,000
homeowners through a one-time increase in
Homeowner Property Tax Refunds, and to
350,000 renters through Renters Property Tax
Refunds. This bill also clarifies and broadens
last years law that exempts local governments
from sales taxes, and increases Local
Government Aid to cities by $15.6 million.
Other, small-scale tax relief includes a
pilot project aimed at improving retention and
recruitment of volunteer first-responders in 14
greater Minnesota counties, National Guard
members, reading-tutor expenses, disabled
veteran surviving spouses, and school-related
fundraising groups.