MnFAC Detailed Session Summary - Final
June 15, 2017
2017 Legislative Session ended without adoption of a state budget on Monday, May 22 at midnight.
Special Special Session convened at 12:01 am Tuesday morning, after agreement was reached by the House the Senate and the Governor establishing parameters for the special session and agreement that they would complete the work of establishing a budget in one day. However, one day became four days prior to passage of a tax bill, 9 budget bills, a capital investment/bonding bill and the local preemptions bill – which was amended to include the omnibus pension bill.
The February budget forecast projected the balance available for the new biennium at $1.65 Billion –$250million higher than piror estimates.
- Governor Dayton had proposed spending about $300 million in tax reductions
(House proposed $1.35 Billion in tax reductions /Senate proposed $900 Million in tax reductions)
- First tax Bill adopted by the conference committee spent $1.15 billion in tax reductions
- Final Tax bill passed by the legislature
The funds spent in a tax bill, relate to how much revenue is available for appropriation in the state agency budgets such as public safety and transportation, etc. Less pending on tax reductions will result in additional funds available for appropriations in the omnibus state agency finance bills such as public safety, transportation, etc.
During the regular session only 5 of 10 budget bills passed and the Governor vetoed each of them. The next round of budget bills were more closely aligned to priorities of the Governor as well as those of the Legislature.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Provision Affecting the Fire Service in Omnibus Finance bills:
OMNIBUS PUBLIC SAFETY BILL
HF470B Cornish (Limmer) - Session Law Chapter 95 – Regular Session
Article 1
Fire Safety Account appropriations made as recommended by FSAC for the State Fire Marshal Division, the Board of FF Training and Education and the teams; but did not support the recommendation for school inspections. The committee followed the recommendation that funds not appropriated as designated by FSAC remain in the account and left for re-appropriation by the FSAC.
Subd. 4 State Fire Marshal Division $6,274,000 in the first year and $6,408,000 in the second year
-$300,000 increase each year for inspection of nursing home and board care facilities
(replaces federal funds)
Subd. 5. Board of Firefighter Training and Education. Appropriates $5,015,000 each year to the Board of Firefighter Training and Education. Directs funds to be used for firefighter training, Minnesota Task Force 1, and the Minnesota Air Rescue Team. [H.F. 2121]
-$4,265,000 each year for firefighter training and education ($1,350,000 increase)
-$ 500,000 each year for Minnesota Task Force 1
-$ 250,000 each year for Minnesota Air Rescue ($60,000 increase)
Unappropriated Revenue. Any additional unappropriated money collected in fiscal year 2017 is appropriated
to the commissioner of public safety for the purposes of Minnesota Statutes, section 299F.012.
(Fire Safety Account continued)
In addition, the commissioner may transfer appropriations and base amounts between activities in this subdivision.
Hazmat / Chemical Assessment Teams were appropriated $850,000 each year from the Fire Safety Account to fund Hazmat/Chemical Assessment Teams. Of this amount, $100,000 the first year is for cases for which there is no identified responsible party.
(The FSA provisions noted above were recommended by FSAC and were originally introduced as HF 2121Cornish, Howe, Hilstrom / S.F. No. 1830:Limmer/Hall/Latz/Ingebrigtsen)
Emergency Response Teams. Appropriates $675,000 each year to fund emergency response teams.
The commissioner must allocate the appropriation as follows: (1) $225,000 each year to the St. Cloud Fire Department; (2) $225,000 each year to the Duluth Fire Department; (3) $125,000 each year to the St. Paul Fire Department; and (4) $100,000 each year to the Moorhead Fire Department. These are onetime appropriations.
(Originally introduced as a general fund appropriation: HF 1179 Newberger / SF1127 Relph)
(When the House bill left the floor it funded the ERT teams from the railroad safety account.)
(When the Senate bill left the floor it did not have any funding for the 3 ERT teams.)
Other public safety items:
ARMER Improvements.
$1,000,000 each year is to the Statewide Emergency Communications Board for improvements to those elements of the statewide public safety radio and communication system that support mutual aid communications and emergency medical services or provide interim enhancement of public safety communication interoperability in those areas of the state where the statewide public safety radio and communication system is not yet implemented, and grants to local units of government to further the strategic goals set forth by the Statewide Emergency Communications Board strategic plan.
Disaster Assistance Contingency Account.Directs up to a $10,000,000 transfer to the disaster contingency account if the balance in the general fund exceeds the closing balance projected at the end of FY17.
(Governor’s request was $20 million. The House had $2 million. The Senate had $0.)
Disaster Assistance Account Modified.
UTILITY COOPERATIVES made eligible recipients under the state disaster declaration
(Originally introduced as HF2119 Urdahl / SF1872; Ruud)
OMNIBUS TAX BILL
HF 1 – Davids (Chamberlain) - Chapter 1 - Special Session
LGA appropriation increase. The bill includes a $15 millionpermanent increase in LGA funding beginning in calendar year 2018, bringing the total appropriation to $534.4 million per year. This is is higher than the vetoed tax bill which only include a $6 million one-time increase. However, Governor Dayton has proposed a $20 million increase and legislation supported by the League of cities would have provided a $45.5 million increase.
One-time, partial early LGA distribution. The bill also includes a one-time distribution of roughly 29 percent of each city’s July 2019 LGA that will be distributed in June of 2019.
New Revenue to Fire Safety Account and to the Volunteer Fire Assistance Grant Account
In the future, 50% of sales tax revenue from the sale of legal fireworks for personal use will be dedicated for fire safety purposes; halfto the existing fire safety account and half to the volunteer fire assistance grant account for fire departments in communities with population under 10,000. The dedication begins with sales after December 31, 2017 and goes into effect even though the types of fireworks that could be sold to individuals was not expanded. (Dedication doesn’t apply to fireworks used in professional displays.)
Volunteer fire assistance grant account. Establishes this new account in the special revenue fund to be used for making grants to local fire departments for equipment and training. The account is funded with the estimated sales tax revenue from the sale of personal fireworks in the state in section 22. Effective beginning with deposits in fiscal year 2018.
Distribution of revenues
- Requires the commissioner of revenue to deposit 25 percent of the estimated sales tax from the sale of personal fireworks to the existing fire safety account; and also deposit 25 percent of these anticipated revenues to a new “Volunteer fire assistance grant account” for making grants to local fire departments for equipment and training.
- The remaining 50% of revenue goes into the general fund.
ARTICLE 12 –Section 1, Line 265.26 – Technical changes
Fire state aid. Replaces the term “town and farmers’ mutual insurance companies” with “township mutual insurance companies,” consistent of the use of the term elsewhere in statute. Effective the day following final enactment.
Firefighter relief surcharge payments. Modifies the definition of “commissioner” to reflect that the commissioner of revenue, not the commissioner of management and budget, determines payments under the firefighter relief surcharge for cities of the first class. Effective the day following final enactment.
Firefighter relief surcharge payments appropriation. Changes the appropriation for firefighter relief surcharge payments to the commissioner of revenue, not the commissioner of management and budget, since the commissioner of revenue makes the payments. Effective the day following final enactment.
ARTICLE 12 - Section 14, Line 284.10
Returns; firefighter relief surcharge. Reduces the number of tax returns companies for the firefighter relief surcharge from three to two, by combining the March and May filings. Effective for returns due after October 31, 2017.
TRANSPORTATION BILL
HF861 – Torkelson (Newman) - Chapter 62 - Special Session
The bill does NOT include the railroad safety policy language that the fire service, emergency managers and railroads agreed on. The chairs of the transportation committee have stated interest in taking this issue up at the beginning of the next session.
Public Safety Support.Appropriates $8.9 million in FY18 and FY19 for public safety support. Specifies that $640,000 each year is for payment of public safety survivor benefits; $1.367 million each year is for the public safety officer’s benefit account; and $700,000 each year is for soft body armor reimbursements.
Section 69, Line 72.28. Limitations; misdemeanor. Makes a technical change to move an existing weight limit exemption for fire apparatus to a new subdivision. This section is effective the day following enactment. (S.F. No. 2091, Lang)
Section 70, Line 73.3. Certain emergency vehicles. Establishes motor vehicle weight limit exemptions for police special response vehicles and ambulances. This section is effective the day following enactment. (S.F. No. 2091, Lang)
Line 8.32 makes a one-time appropriation of $3 million from general fund, for the haz mat rail safety program and grants in MS 219.017.
BONDING/CAPITAL INVESTMENT BILL- almost $1 BILLION in projects
HF 5 Urdahl (Senjem) – Chapter 8 Special Session
- State Emergency Operations Center (SEOC) was NOT INCLUDED even with $988 million in other spending. This initiative is not likely to pass without significant local pressure on legislators.
- Camp Ripley Oil Train Derailment Training Facility was included.
- Rail Grade Separation on Crude Oil Rail Corridors for Moorhead, Anoka County and Red Wing were included.
AGRICULTURE
SF 780 Westrom
The Senate Omnibus Agriculture bill (regular session) had been amended on the floor to include a residential sprinkler prohibitionin the section dealing with Housing.
“Fire sprinklers prohibited from being made mandatory by code or in any new or existing single-family
detached dwelling unit, two-family dwelling unit, townhome, or accessory structure such as a garage,
covered patio, deck, porch, storage shed, or similar structure”.
This language was then transferred out of Ag bill and into the Jobs conference committee with other housing provisions. (The prohibition did not pass in any bill this year.)
JOBS, Commerce, Energy, Labor and Industry, Employment & Economic Develop.
SF1456 Garafalo (Miller) Chapter 94 – Special Session
Interim ordinance. See lines 204.3 – 205.11
A statutory or home rule charter city may adopt an interim ordinance that regulates, restricts, or prohibits a housing proposal only if the ordinance is approved by a majority vote of all members of the city council. Public hearing required (previous language required 2/3 vote).
“Housing proposal" means a written request for city approval of a project intended primarily to provide residential dwellings, either single family or multi-family, and involves the subdivision or development of land or the demolition, construction, reconstruction, alteration, repair, or occupancy of residential dwellings.
Building permits. See lines 51-19 – 52.23
Reduces construction plan review and inspection permit fees for construction projects under the jurisdiction of the Department of Labor and Industry, including state owned and state licensed facilities, hospitals, and schools.
Places of Public Accommodation Subject to Code 326B.109 See lines 51.29-52.8
MnFAC worked with SFM/DPS and DLI to include the language in Sec. 4
Subd. 1 Definition.For purposes of this section, "place of public accommodation" means a publicly or privately owned facility that is designed for occupancy by 200 or more people and includes a sports or entertainment arena, stadium, theater, community or convention hall, special event center, indoor amusement facility or water park, or swimming pool.
Subd. 2.Application.Construction, additions, and alterations to a place of public accommodation must be designed and constructed to comply with the State Building Code.
Subd. 3.Enforcement.In a municipality that has not adopted the code by ordinance under section 326B.121, subdivision 2, the commissioner shall enforce this section in accordance with section 326B.107, subdivision 1.
Subd. 4.Fire protection systems.If fire protection systems regulated by chapter 299M are required in a place of public accommodation, then those plan reviews and inspections shall be conducted by the state fire marshal.
NO residential fire sprinkler prohibition
NO language onresidential construction or remodeling; legislative notice and review with the $1,000 threshold
ENVIRONMENT
HF888 Fabian (Ingibrigtsen) – Chapter 42 - Regular Session
Does not include the navigation light provision previously contained in the bill which had prohibited the use of lights on watercraft that are not approved navigation lights if the lights interfere with the visibility of required navigation lights or are red, green, or blue. This section also provides exceptions for certain public safety and law enforcement activities.STATE GOVERNMENT (SF605)
SF1 Kiffmeyer (Anderson) Chapter 4 – Special Session
MSFCA signed a letter in opposition inclusion of the language from HF1001 in the State Government Operations Conference Committee bill(SF605) and in the Jobs bill. The language below was NOT included in the final State Government bill.
Requires an agency or administrative law judge to determine the cost of complying with a proposed rule on construction or remodeling. If the cost exceeds a specified amount ($1,000 or more), the agency must notify the legislature. If a legislative committee advises an agency not to adopt a rule that meets or exceeds the specified cost threshold, the agency may not adopt the proposed rule unless the rule is approved by law.The next two provisions were NOT included in the signed State Government Operations bill:
Minnesota Statutes 2016, section 69.031, subdivision 1, is amended to read:
Subdivision 1.Commissioner'swarrantpayment.(a) The commissioner of managementand budget shall issue to the Public Employees Retirement Association on behalf of amunicipality or independent nonprofit firefighting corporation that is a member of thevoluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, to
the Department of Natural Resources, the Department of Public Safety, or the county,municipality, or independent nonprofit firefighting corporation certified to the commissionerof management and budget by the commissioner awarrantpaymentfor an amount equalto the amount of fire state aid or police state aid, whichever applies, certified for theapplicable state aid recipient by the commissioner under section69.021. Fire state aid and police state aid is payable on October 1 annually. The amount ofstate aid due and not paid by October 1 accrues interest payable to the state aid recipient atthe rate of one percent for each month or part of a month that the amount remains unpaid
after October 1.
Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:
Subdivision 1.Cities of the first class.(a) The commissioner shall order and direct asurcharge to be collected of two percent of the fire, lightning, and sprinkler leakage grosspremiums, less return premiums, on all direct business received by any licensed foreign ordomestic fire insurance company on property in a city of the first class, or by its agents forit, in cash or otherwise.
(b) By July 31 and December 31 of each year, the commissioner of management andbudget shallpayissueto each city of the first class awarrantpaymentfor an amount equalto the total amount of the surcharge on the premiums collected within that city since theprevious payment.
(c) The treasurer of the city shall place the money received under this subdivision in aspecial account or fund to defray all or a portion of the employer contribution requirementof public employees police and fire plan coverage for city firefighters.
STATE TAX CONFORMITY to FEDERAL
HF2 Davids (Chamberlain) - Chapter - Regular Session
Retroactively conforms Minnesota’s individual income tax and corporate franchise tax to federal changes. Including: the “Don’t Tax Our Fallen Public Safety Heroes Act, Public Law 114-14”, enacted May 22, 2015, that clarifies that the exclusion of federal or state benefits paid to surviving dependents of a public safety officer killed in the line of duty also apply to state benefits that were payable without regard to whether the officer’s death was in the line of duty.
LOCAL GOVERNMENT PREEMPTION and OMNIBUS PENSION (SF545) were merged
HF4 Garafalo (Miller) – Chapter 2 – Special Session
VETOED DUE TO THE PREMPTION LANGUAGE
Additional bills that passed:
SF1354; Latz (Flanagan) – Fire and Policy Civil Service Commission bill modifications
Amending provisions relating to police and firefighters' civil service commissions and employees of
police and fire departments; amending Minnesota Statutes 2016, sections 420.03; 420.04; 420.16.
HF792 Theis / SF578 Draheim - Townhouse definition modification
MnFAC worked to this amending this legislation which clarifies that one and two family townhouses are not
required to have installed automatic fire sprinkler systems. (Due to court ruling on residential sprinklers)
HF1538 Smith / SF 1455 Dziedzik - unintendedly could have created liability for fire inspectors -
Minnesota Common Interest Ownership Act amended to provide for construction defect claims.
(note: the Public Safety Doctrine which you may be familiar with is case law; not statute.)
MnFAC worked to amend the bill to clarify that “inspector” is “private inspector”
HF 1833 Johnson, B – EMERGENCY VEHICLE WEIGHT LIMIT EXEMPTION -
This bill establishes motor vehicle weight limit exemptions for police special response vehicles and ambulances (including per-axle and gross vehicle weight limits as well as posted limits). It also makes a technical change to move an existing weight limit exemption for fire apparatus to a new subdivision. The change would go into effect the day after enactment.
Included in the House Omnibus Transportation Bill
HF0102 Zerwas SF95; Hayden - Ambulance Services