State Representative
Richard Mulder

Here's a look at of Week 4 of the 2002 Legislative Session.

BIPARTISAN BUDGET AGREEMENT

This week the Minnesota House of Representatives and Senate passed a bipartisan balanced budget agreement and sent it to Governor Jesse Ventura for his approval or veto. The compromise bill reflects Minnesotans' priorities while eliminating the current projected $1.95 billion deficit for 2002-03. It would also cut 2004-05 spending by $1.8 billion. The legislation accomplishes this without hurting our classrooms or nursing homes, without raising taxes on working families and without harming state aid to our communities.

The bipartisan plan cuts one-time and permanent spending by more than $505 million, puts in place a freeze on state hiring and contracts, and prudently taps state reserves that are held for times like these. It also contains the most fundamental spending reform in a decade: taking away automatic budget increases in state spending to reign in future budgets.

Many people are concerned about the effect of the deficit on education. This bill only reduces the education budget by about one-tenth of one percent for this year and two-tenths in 2003, with majority of reductions from state bureaucracy in the Department of Children, Families and Learning. It does not reduce funding to K-12 classrooms.

If the bill is vetoed and opponents prevent a veto override, Gov. Ventura may use his unallotment authority to make deeper cuts that will hurt classrooms. And that doesn't even begin to mention his proposed $1.4 billion tax increases or threat to local government aid. Ventura has until Monday to decide what he will do with the bill.

SENATE SOFTENS WELFARE LIMITS

As thousands of Minnesota welfare recipients approach their five-year cutoff, a Senate

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committee this week approved a bill to extend benefits for another three years, even though several exemptions to the time limits were passed last year to protect the truly needy. No corresponding legislation has been introduced in the House, but Senate supporters say they will try to add the language to another bill in conference committee.

BILL TO WATCH - CLEAN WATER

An innovative clean water bill has been approved by a House committee and is on its way to a full House vote. It's designed to give training to citizens to monitor local water quality with the assistance of the Minnesota Pollution Control Agency (PCA). The PCA will make sure that requirements are met for obtaining environmental clean-up program dollars from the federal government. Minnesotans value the natural resources of this great state and will jump at the chance to help assure that the water we drink, swim, and fish in is safe. The bill is supported by a broad range of conservation and environmental organizations.

ELIMINATING SOME OF SCHOOL COSTS

The Minnesota School Mandate Relief Act would end state requirements to districts to set aside certain funds for staff development and class size reduction, exempt districts from having to pay state prevailing wages when hiring contractors for school construction projects, and allow school districts to begin the school year when they choose. The bill is supported by the Minnesota School Boards Association, the Minnesota Association of School Administrators, the Association of Metropolitan School Districts, and a large contingency of school district superintendents from across the state. We should be willing to trust local school boards to determine how to best spend their money and administer their schools.

TELEMARKETING - BUSINESS OR BOTHER?

On Wednesday, a Senate committee approved a plan to create a state-run list of Minnesotans who don't want telemarketing calls. While the bill seeks to protect consumers from harassment and fraud, the measure also raises concerns about small local business. Businesses that do telephone sales would be required to buy the list every six months and face civil penalties for violating it. But the watered-down bill exempts many individuals and organizations, and it won't prevent thousands of Minnesotans from continuing to receive solicitation calls. "Do not call" legislation has become law in 21 other states. If the bill reaches the House, I will take these issues and your opinions under serious consideration.

WINE IN GROCERY STORES

Another contentious issue has returned to the capitol this year: the proposed sale of wine in metro-area grocery stores. You might remember that last year a similar bill was heard, but then held over for refinements. Under the current bill, supermarkets selling wine would be required to have employee training programs and theft prevention plans. Cities issuing wine licenses to supermarkets would also be required to conduct at least one compliance check each year at each supermarket.

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Proponents argue that consumers in Minnesota - like in 33 other states that have approved the legislation - are demanding this change and want the convenience of buying wine while doing their grocery shopping. Opponents are concerned about the increased availability of alcohol to minors, and potential increase in number of drunk driving incidences. The measure was defeated by one House committee this week, but may return in some form before session's end.

ASSISTING OUR RURAL ECONOMY

A bill introduced last week authorizes 3-10 "tax-free zones" in Greater Minnesota and the creation of up to five special agricultural processing facility tax-free zones. The legislation is designed to encourage the expansion of value-added agriculture industries and as a way of stimulating economic development in distressed areas of the state.

Cities, counties, towns, and schools (jointly or alone) can apply for designation of tax free zones, which must be located outside of the seven-county metropolitan area. Significant tax benefits will accrue to individuals living in - or investing in - tax free zones, as well as businesses operating in those zones. In addition to the individual income tax and corporate franchise tax exemptions, a sales tax exemption is provided for materials, equipment, and vehicles purchased by businesses for use in the zone - an exemption which extends to local sales taxes. In addition, property in the zone is exempt from property tax. Individuals who invested in zone businesses would be exempt on their business income attributable to activity in the zone, as well as capital gain taxes on the zone investments.

U of M EXTENSION PROGRAMS

The University of Minnesota's decision to cut staff and reduce programs within its Extension Service is being met with a bill that requires them to place less emphasis on state and federal duplicated "human development" programs and devote more attention to other priorities including agricultural finance, nutrition, and youth and rural leadership development. U of M also plans to institute user fees that would discourage participation in programs like 4-H, and force individual counties to pay more for services provided by the Extension. Greater Minnesota will be most impacted by the staff reductions because of labor agreements and tenure that protect those on the St. Paul campus. Eliminating one-fifth of extension staff will only weaken the program and rural area's ability to sustain economic viability.

PROTECTING THOSE WHO PROTECT US

A number of bills introduced or heard this week focus on the jobs and homes of those who serve and protect Minnesotans. HF 2525 intends to help protect the rights of volunteer firefighters by requiring employers with at least ten employees to allow up to 40 hours of unpaid leave in every 12-month period. Many communities are dependent upon the services of their local volunteer fire departments, and this bill will guarantee that they can perform their duties without jeopardizing their jobs.

Another bill would create an income and property tax checkoff to benefit a peace officers and

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firefighters memorial fund as well as survivors' funds. It would allow Minnesotans to designate a contribution of $1 or more on their income tax return or property tax refund to go to the fund. The fund would then be distributed by the Minnesota Department of Public Safety.

Under another bill (HF3274), Minnesota military personnel would be able to receive the benefits of a 1940 federal law that provides protections for military personnel, including reduced interest rates on mortgage payments and credit card debt, protection from eviction, and temporary suspension of certain civil court proceedings such as bankruptcy, foreclosure, and divorce. The bill will be heard in committee next week.

Also, a bill providing bonding money for two homeless veteran facility projects - one in St. Cloud and one in Minneapolis was recently introduced. Projects in the bill would enable homeless veterans to have temporary housing with access to Veterans Administration services such as healthcare, counseling and transit. The facilities would lessen the strain on existing homeless shelters and be an effective way to enable homeless veterans to find jobs, as well as a home of their own.

FINALLY, ON A LIGHTER NOTE...

Before the Segway Human Transporter can change the world, the Minnesota Legislature must consider whether to allow the 15-mile per hour motorized vehicle on sidewalks. A House committee this week gave an okay to the bill, which allows the scooter to be used on sidewalks and bike paths at reasonable speeds and on roads with speed limits below 35 miles per hour where there is no sidewalk. The bill heads now for the House floor.

PASS IT ON

Are your friends and family tired of getting legislative news filtered through reporters and timely as week-old newsprint? Forward this message to them and tell them to sign up on my member page of the House website at www.house.mn.

Thanks for your feedback and the encouraging words that help me represent you better in St. Paul. If you have comments or questions, please don't hesitate to call me regarding these or any other issues by calling 1-800-474-3425 or (651)296-4336. Or write me at Rep. Mulder, 515 State Office Building, 100 Constitution Avenue, St. Paul, MN 55155 or rep.richard.mulder@house.leg.mn.us.

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