Agenda - Council Work Session - 06/13/2017

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LEGISLATIVE UPDATES The 2016 legislative session, falling in the second half of the state's fiscal biennium, was scheduled to be a short session lasting only 11 weeks. Since biennial budgets are adopted in odd -year legislative sessions, less time is usually needed for the even -year sessions. However, because the 2015 Legislature adjourned without passing funding bills in several significant areas, it was anticipated that the 2016 legislative session would be considerably more active than the typical short session. In spite of this, only a few funding bills were brought forth to the Governor by the end of the 2016 regular legislative session, including a supplemental budget bill and an omnibus tax bill. The Governor chose not to sign the tax bill due to a drafting error that would have resulted in an unintended reduction of state revenues. When the framework for a special session could not be agreed upon, the fiscal year ended without the adoption of a new tax bill, capital bonding bill, or transportation funding package. The following is a summary of recent legislation affecting Minnesota cities: Border -to -Border Broadband Grants — The 2016 supplemental budget act appropriated $35 million in fiscal 2017 for a Border -to -Border Broadband Grant Program. The grants, available through the Office of Broadband Development in the Department of Employment and Economic Development (DEED), provide funding to help communities meet state goals for the development of state-wide high-speed broadband access, focusing on areas currently considered to be underserved or with a high concentration of low-income households. Equity -Related Programs and Grants — The 2016 supplemental budget act also appropriated $35 million in fiscal 2017 for the financing of equity -related programs through DEED, the majority of which was allocated for programs and grants for communities of color, people with disabilities, seniors, and youth. Sales Tax Exemption — Effective January 1, 2017, the sales tax exemption on the purchase of goods or services enacted for cities in 2014 is expanded to include all special districts; city, county, or township instrumentalities; economic development authorities; housing and redevelopment authorities; and all joint power boards or organizations. Taxes Covered Under Debt Management Services — Amendments were made to the statutes governing debt management and debt settlement services to clarify the status of delinquent taxes owed to Minnesota local governments and political subdivisions as debt with regard to those services, and include those entities as creditors for the purpose of debt management services. Elections — An omnibus elections law was passed making several changes to elections administration requirements. In addition to establishing a presidential primary to take the place of the current caucus system beginning in 2020, the law modified election procedures in a number of areas, including. absentee balloting, voting station dimensions, election canvassing, candidate filing, the extension of polling hours to accommodate voters in line at closing, and emergency election plans. Police -Worn Body Cameras — A number of new laws were enacted related to portable recording systems (police -worn body cameras) and the data derived from their use, addressing: data retention and destruction, permitted uses of the systems, audits of the data, and vendor practices. Among the changes are a requirement for gathering public input before purchasing or implementing the use of portable recording systems, and requirements for the adoption and dissemination of written policies over the use of portable recording systems. Veteran Preference Act — New language was added to state statutes clarifying that Minnesota cities and towns may require a veteran to complete an initial probationary period when hired. -17-