New law authorizes $330.6 million to address COVID-19 pandemic

A wide range of efforts will be supported by a new law that appropriates $330.6 million to address the impact of the COVID-19 pandemic in Minnesota.

The largest of its funding provisions is a $200 million General Fund appropriation to create a COVID-19 Fund that Minnesota Management and Budget will draw upon to help state agencies respond to the outbreak. (Art. 1, Secs. 7-9)

A COVID-19 Response Commission, made up of legislative leaders and chairs of the House and Senate finance committees, will be created to review expenditures from the fund greater than $1 million.

Other budget items in the law include:

• $30 million to create an account for small business emergency loans at the Department of Employment and Economic Development, funding a program created by executive order;

• $29.96 million for a grant program to support licensed child care providers, who, in part, agree to care for the children of health care and other emergency workers and follow health and safety practices to limit the spread of COVID-19;

• $26.54 million in emergency services grants, of which $15.21 million is intended to provide additional shelter space, $5 million is to purchase hygiene, sanitation, and cleaning supplies, and $6.33 million is for staffing;

• $11 million to help Minnesota’s 11 tribal nations address the crisis;

• $10 million to guarantee loans from private banks to small employers through an existing program modified for this new emergency;

• $9 million in one-time funding for the state’s food shelf program, at least $3 million of which must be used to help regional food banks make specialized responses to community needs;

• $6.2 million to provide financial assistance to veterans and surviving spouses in need of assistance as a result of COVID-19;

• $5.53 million to provide housing support relief by increasing limits and rates for room and board and supplementary services; and

• $2.4 million to handle Real ID applications (Art. 1, Secs. 1-6, 10-12).

[MORE: View the spreadsheet]

The law also includes a range of policy measures that, by category, will:

Agriculture and commerce

• modify the state’s Disaster Recovery Loan Program to provide more flexibility;

• waive requirements for commercial pesticide licenses for cleaning company employees; and

• authorize the Department of Commerce to make licensing exemptions, such as extending registration or licensing renewal deadlines.

Health and Human Services

• include diapers and toilet paper as items eligible for purchase under the state’s Supplemental Nutrition Assistance Program; and

• modify fees for medical gas providers and eliminate limits on certain prescription refills.

Higher Education

• align state and federal work-study guidelines to help students receive payments;

• temporarily suspend Student Educational Loan Fund rules to allow the Office of Higher Education flexibility in providing payment relief and allow students to complete coursework;

• provide flexibility to hold child care grant recipients harmless in the event of reduced number of classes; and

• hold state grant recipients harmless from changes due to COVID-19 and temporarily suspend Office of Higher Education rules about repayment of aid.

Jobs

• codify the March 16 Executive Order on Unemployment Insurance that provides protections for workers who are unemployed, quarantined, told not to come into work, or impacted by school and child care closures due to COVID-19; and

• temporarily relax MN investment fund restrictions so that cities can make loans to retail stores, service providers, and hospitality businesses.

Public Safety

• require the Department of Public Safety to report to the Legislature about the department’s use of temporary powers during the COVID-19 emergency;

• expand the type of documents that can be used to obtain a REAL ID-compliant driver’s license or identification card;

• extend deadlines to renew driver’s licenses and disability parking permits if they would expire during the declared emergency;

• authorize the medical director of the Department of Corrections to make health care decisions for inmates who are incapable of doing so, and do not have another person designated to do so;

• allow inmates with 90 days or less on their sentences to be housed in county jails or detention centers; and

• allow the Bureau of Criminal Apprehension to temporarily delay fingerprinting for essential workers’ background checks.

State Government

• provide exemptions to the state’s standard purchasing process, allowing Minnesota to more quickly buy supplies and services from companies around the country that may not have previously done business in the state; and

• move the property tax appeal deadlines from April 30 to May 30, 2020.

House Majority Leader Ryan Winkler (DFL-Golden Valley) and Senate Majority Leader Paul Gazelka (R-East Gull Lake) sponsor the law that took effect March 29, 2020.

HF4531*/SF4451/CH71

HF4531* / SF4451 / CH71